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The local shop will also carry used instruments, which is a great way to get a better guitar for less money. Stores usually take these instruments on trade, and inspect them very carefully. An acoustic guitar that sells new for $300, might sell used for $175-200 and look brand new. My preference is to always buy used if I can.
Nobody wants to buy a car with Burger King wrappers in the back seat and kid finger smudges on the windows that's 2,000 miles overdue for an oil change (this also goes for trading it in, by the way).
You can also look into buying foreclosed homes.
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