This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Reasons to Avoid Liquidation Sales

If you still feel you must go to the liquidation sale because you are sure prices will be good, do your homework. Know the prices at area rivals and online. This way, you'll know what a good deal is.

There are limited forms of payment: The way you can pay for merchandise at a liquidation sale can be limited. Checks, coupons and gift cards probably won't be accepted. You probably can't use credit cards in the final weeks, when large discounts come into play.

All sales are final: Since the store is going out of business, sales are usually final. If you have trouble with that big-screen TV or gadget, the store isn't going to help you. Especially for expensive items, it may not be worth the risk if you are only saving a few dollars.

If you do decide to buy at a liquidation sale, see that the item is in good working condition. Plug it in to make sure it works and open the box to be certain all the pieces are there. You need to take extra care since you won't be able to return it. Fully understand the return policies and any terms of the sale before you buy. If you can, use a credit card to get protections.

There's no knowledgeable help: The goal of liquidators is to sell, not to help you decide which of several similar gadgets would best suit your needs. All staff will likely be working the cash registers, and any floor help may have little to no knowledge with technical questions. Basically, there will be no service of any kind, so unless you know exactly what you want, liquidation sales are not the place to try and find something.

Good deals can usually be found at the end of a liquidation sale, but only on items that aren't in high demand. Don't be fooled into thinking that, just because a business is being sold through liquidation, it guarantees a good price. Liquidation sales carry a lot of disadvantages. Or better yet, skip the liquidation sales altogether and spend your money on things that are on your need list.

Jeffrey Strain has been a freelance personal finance writer for the past 10 years helping people save money and get their finances in order. He currently owns and runs SavingAdvice.com.
2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,081.46 +137.65 0.81%
S&P 500 1,977.99 +10.42 0.53%
NASDAQ 4,438.9430 +23.4530 0.53%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs