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Babies require so many items. You have to have a car seat, stroller, crib, bouncer, clothes... the list goes on and on. One of the best ways to save money on baby gear is to buy used.
Most baby items can be purchased used. The only items that need to be brand new are car seats. If buying a used crib, be sure it hasn't been recalled or doesn't have drop-sides.
Consignment sales are a great way to save money and get some nice, gently used items.
Craigslist is also great for getting baby items. Often items I see moms selling clothing by the lot, which is a great way to buy a bunch of items and not have to meet up with several sellers.
Ebay. I've found some great diaper bags - I'm a little bit of a diaper bag addict - on Ebay. There are lots of gently used baby items and clothing lots.