Hi H.,
It IS overwhelming the number of things that companies will try to convince you that you need to buy, isn't it? My father helped me put it in perspective when he commented that families used to make due putting a new baby in the sock drawer. (OK, I'm not going to THAT extreme, I said. Grin) Our first baby is due in four weeks and I'm feeling pretty well prepared. We have bought just a few things new, the rest I found through getting creative. We saved money, but it takes some time to invest and you need to stay flexible.
Keep focused on the basics that the baby will actually need right away, like the car seat and a couple pieces of good furniture for the baby's room (crib and a dresser that could double as a changing table). You'll also need some practical, basic clothes and supplies. (Gotta love onesies!) As fast as babies grow it just does not make sense to drop a lot of money on a bunch of fancy items.
Ideas for sources: My mother in law hit several thrift stores and sent baby clothes & blankets to us that are absolutely perfect. No one would ever know they are not new! The Good Will on Overland has baby clothing organized really well the store is clean. "Other Mothers" on Fairview has a good selection of equipment like strollers & play pens. I bought several pieces of used furniture & equipment through www.CraigsList.com and www.Zidaho.com. If you feel up to some driving around, maybe you can get out some Friday afternoons & Saturday mornings to check out some yard sales. You can find yard sale listings on www.ZIdaho.com and www.IdahoStatesman.com. Only go to ones that describe having baby equipment. You'll be amazed at the deals you can get when parents are ready to turn their baby stuff loose. When baby items are listed get there early. Good baby stuff goes really fast at yard sales.
Good luck!! Happy Bargain Hunting!!
K.