I'm in Central NJ and I think the craigslist market is FREAKIN AWESOME. Some deals I got this year:

2004 MIM 60s series Lake Placid Blue - MINT CONDITION - $300 no case. - goes for $750 new.

2007 or 2008 Classic Players 50s strat - 2 tone burst - MINT - $400 w/ bag. goes for $1100 new.

2001 MIM black standard strat - MINT with SKB hardshell case $225

Epiphone Hummingbird Acoustic - cherry burst - MINT - $250 with real nice soft/hard case. Guitar goes for $350 new.

I'm patient and I usually find what I'm looking for in a week or so, and I don't mind driving up to 1.5 hours to get what I want.

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It much the same everywhere. More and more people know the value of what they have, And try to get top dollar for it.

Cvilleira you hit the nail on the head, and that is why it is so easy to find a great deal on a Fender guitar on ebay because there are so many listings. Some nights I run through the whole Strat and Tele index and look at about 4000 guitars, a lot of coffee and smokes lol But I wind up putting 15 in my ebay that are just outstanding deals and will pass them on to friends or just let them pass. But the thing is there are great deals out there because there are so many. The only other guitars I own are Peavey Wolfgangs and an EBMM EVH and Axis. They are basicly the same ax but it is almost immposible to get a deal. Since Eddie left Peavey the prices soared and the EBMM have been high for a long time.Both are discontinued so when you look for a Wolfgang you are lucky if 40 guitars come up and an EBMM you are lucky if 6 or 7 show so that makes for slim pickens.lol A year ago you could grab a nice Wolfgang for $900 to $1,000. One popped up Monday that caught my eye a NOS Blue flamed maple top that started at $200 on a three day listing that I really wanted. Well lets just say it sold for $2,100 and I did not want it that bad.lol Ever since the Fender version came out the old ones are selling for insane prices.

You are only a couple hours from Chicago, one of THE largest instrument markets on the planet. Check out Tommy's Guitars and Cafe on Chicago Ave, a couple local SA and GCs, there are likely 100+ stores where you can hold and play, not easy to-do on e-Bay. And there's Cream City Music just over the border in WI, and Ax-In-Hand in DeKalb, 1/2 your trip in.

Make a Friaday sand Saturday of it, do a hotel in your planned route. You can likely do 15 places per day. Best of fortune!