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Labor Day deals abound
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September 6, 1999: 10:27 a.m. ET
Shoppers can hit it big this fall with retailers, car dealers and travel agents
By Staff Writer Shelly K. Schwartz
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NEW YORK (CNNfn) - Labor Day: Summer's last hurrah.
To many, the holiday that honors the American worker has become synonymous with pool parties, barbecues and three-day weekends at the shore. To others, it marks the beginning of back-to-school season -- holding the promise of crisp, cool temperatures to come.
But to the bargain hunters among us, Labor Day weekend also kicks off open season at the shopping mall, where deep dollar discounts abound. And some say deals this year are shaping up to be better than ever.
"We're not only coming to the end of the year, but the end of a millennium, so for anything tied to a model year, like cars, bikes and electronics, you should be able to get a pretty good deal on now," said Mary Hunt, owner and founder of Cheapskate Monthly, a newsletter designed to help people live within their means.
"The retailers have been marketing their new 2000 products heavily and making such a big deal out of it and they don't want 1999 models hanging around," she said.
The real deal
Historically, the end of summer and early fall have been the best times to find drastically reduced prices on sporting goods, bathing suits and garden equipment.
That may still be true, but Hunt said online retailers and auction sites, like eBay (EBAY), have added a whole new level to the bargain shopping experience -- a scenario that has traditional retailers running scared.
"Retailing has changed considerably," she said. "Before the era of the Internet, you could be pretty certain that every January you'd get your white sales and you never expected to get a pre-Christmas sale. Now, retailers know that consumers are getting very savvy in bargain hunting and it's so competitive that they are all trying to 'out retail' each other."
That means deeper discounts for you. It's also helped broaden the types of goodies you can find in the 50 percent-off bins.
But when it comes to Labor Day and post-Labor Day shopping, Hunt said some of the same old rules still apply.
"You have to think the way a retailer thinks," she said. "The holidays are coming down the pike and every retailer out there knows their holiday merchandise will be arriving any time. They need to get rid of everything on the shelves to make room for it."
The art of the sale
First stop: the garden aisle.
"This is still a good time to find gardening supplies, including lawnmowers and anything else to do with your yard," Hunt said, noting you should be able to knock at least 30 percent off the original price. "You can get a great deal this time of year, especially if it's a year-old model."
Think, too, about buying that bicycle you've been eyeing. Prices on all models -- this year's included -- drop considerably this time of year. If it's for your kids, you may even want to make the purchase now and find a good hiding place for it until Christmas.
The same kinds of discounts can be had for big-ticket appliances, like refrigerators, washing machines, and many types of electronics -- computers in particular.
"You could easily buy a year-old model and those are the ones they are really trying to get rid of," Hunt said. "Unless you're doing complicated graphics or something, most of us don't need the latest model."
Look on the back near the serial number. It will tell you what year the product was made.
As we move closer toward the gift-giving holidays, many computer stores will be pushing their year 2000 models. That means they'll be trying to move older products off their shelves now.
"Generally this time of year is clearance time in the auto business," said Jack Nerad, author of the Complete Idiot's Guide to Buying or Leasing a Car.
That's because the model year in this industry starts Oct. 1. So "having a bunch of previous year models on the lot when the new cars start coming in has a chilling effect on the dealer."
Nerad said 1999 has been a particularly strong year for car sales, which may take some of the buyer's bargaining power out of the equation, but he added the factory to dealer incentives are still going strong. And that, ultimately, trickles down to the buyer.
Currently, Nerad said Lincoln is offering dealers a $6,000 incentive to move 1999 model year Town Car Executives and Lincoln Continentals off their lots.
"The dealers could actually sell one of these cars for something seriously below the invoice price and they'd still make several thousand dollars," he said.
Cadillac, Nissan and Kia are offering similar dealer incentives, he said. And some, are even pushing lower sticker prices on their year 2000 models, not even on the lots yet.
But Nerad noted you should be able to get a deal on most model lines this time of year, both imports and domestic.
Coats, couches and patience
A few other quick tips: Look for sales and specials on furniture items around October. That tends to be the time many manufacturers slash prices. And don't run out and buy that new winter coat just yet. Hunt said November is the best time to make that buy.
"I'd wait a month or two and just start watching for the great winter coat sales," she said.
Lastly, when you do stumble across a good deal, don't rush in right away. Just because you found a bargain doesn't mean the retailer next door (or online) isn't offering it for less.
"Once you find a bargain go online to compare," Hunt said. "The Internet is throwing retailers for a loop. They know bargain hunters are getting pretty savvy and they want to get rid of their off-season inventory."
Up, up and away
As for travel later this year, you may be ready to write it off altogether -- having heard the horror stories of sky-high airfare and staggering prices at resort hotels booked for the New Year's Eve celebration.
But that doesn't mean you can't get out and about before the Y2K crunch.
Bob Diener, president of hoteldiscount.com, said off-season discounts are a dime a dozen this time of year at popular vacation spots worldwide. Getting there -- by plane or by train -- is also considerably cheaper.
When the cooler weather starts setting in up north, he said, you may want to check out Florida's Walt Disney World. You may not have much luck finding cheap passes to the parks, but you will likely be able to sleep, eat and fly to Orlando for up to 30 percent off.
A little tip: Try some of the hotels located just outside the Orlando city limits -- about a 30 minute drive to the parks. You can sometimes find rates for 60 percent off where kids eat free.
The Days Inn Lakeside in Orlando, for example, is running a special where a family of four can stay for $38.95 per night and kids under 12 eat free.
Another good bet are the gambling towns, Atlantic City in particular, where rates late fall and early winter tumble by 60 percent. Diener said some Ramadas charge just $45 a night.
It's the same story in Las Vegas, but discounts aren't quite as deep. Check out vegashotel.com for the latest deals.
Breaking away
Late fall, once the peak fall foliage weeks are over and before the ski season starts, is also a nice time to check out Canada -- specifically Montreal and Quebec. Some of the hotels cut rates by 20 percent or more and, as an added bonus, the exchange rate right now is favorable, making it cheaper still.
Currently, one U.S. dollar is worth about 1.5 Canadian dollars.
(Click here for CNNfn's currency converter)
It's also a good time to check out cruise specials, which frequently run two-for-one deals that time of year to drum up business. If you're lucky, you may even find a three-for-one deal.
"Those types of deals are fairly easy to get now and we always advise people to use a cruise consolidator to book their trip," Diener said. "Either that or a travel agent who specializes in cruises. They usually get the best deals."
And don't forget Asia. Stung by its ongoing financial crisis and a decided shortfall in tourism, you're likely to land a hot deal.
Too far to go for a week or two vacation? Cathay Pacific must agree. Pulling up specials on his Web site, Diener said the intercontinental airline is now offer a special for a month of unlimited travel throughout Asia for $999.
Similar deals can be had in Great Britain and Western Europe, where prices plunge in the off-season. Starting in November, many airlines slash prices on round-trip flights between the U.S. and Europe by 40 percent more.
Not only that, but Diener said you can find lots of three-star hotels in Paris and London for $99 a night -- a significant savings over peak season rates.
Lastly, Diener said Amtrak is offering the North American Rail Pass where travelers can purchase a 30-day pass for unlimited travel throughout North America. The ticket, regularly priced at $645, costs $450 ($405 for seniors) from Oct. 16 through May 31.
Your friend the calculator
As financial planning goes, experts say now also is the time to buckle down and spend a few nights with the calculator.
"This is the best time of year to do your tax planning," said M. Eileen Dorsey, a certified financial planner and author of Lifetime Strategies: How to Achieve Your Financial Goals.
One of the best places to get started, she said, is with your retirement plan. Make sure you've maximized your allowable contributions to your 401(k) plan.
The Internal Revenue Service allows you to put in up to $10,000 a year tax deferred, but some employers lower that ceiling a bit.
Regardless of how much your boss matches your contributions, keep in mind that the dollars you put into your 401(k) plan are pre-tax, helping to minimize your tax burden at the end of the year.
"Psychologically, contributing to a retirement plan is the easiest form of financial planning," Dorsey said. "It comes straight out of your paycheck, so you don't have to even think about it and you never miss the money because you never saw it."
If you have any underperforming stocks or mutual funds, it also may be time to clean house. Dorsey said you can sell those securities for better prospects, but if you're not a close follower of Wall Street, you may want to consult your broker first.
For long-term investments, most experts agree it's not a good idea to start chasing market trends.
If you've never done tax planning on your own, Dorsey said the best place to start is with an estimate of your net worth. Next, look at your paychecks for income, scrutinize last year's tax return and make some projections on what you'll likely owe -- or be owed -- this year.
If you're falling far short of your projected tax liability, it's not too late to take action.
Consult a professional tax adviser for tips or simply adjust your withholdings to help minimize the expected blow.
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