Most of my child's wardrobe consists of generous hand-me-downs, consignment sale and garage sale finds. I only buy stuff that is in good condition and have saved a lot of $$ this way. I almost never buy Gymbo or Gap in stores but we have a lot of clothes in both brands. I fill in the gaps with basics from places like Target.
I do it because I'd rather spend the money on other things (travel, eating out, etc) and because it's more eco-friendly than always buying new. I refuse to spend $$ on a pair of Gap jeans when I can get them for $2-3 in like-new condition.
I imagine this will taper off as DS grows and the like-new used market shrinks for the larger sizes.