The 'Governator' has put up 6,000 items including cars, computers and binoculars for sale on eBay and Craigslist.
Schwarzenegger has even autographed the sun visors of several on-sale vehicles to attract customers.
The Telegraph quoted Schwarzenegger as saying on his website, "By posting items online, Californians and people from other states and around the world can participate in the Great California Garage Sale.This is a win-win for the state and for shoppers. Together we are eliminating waste and providing great deals in this tough economy.
"I look forward to selling these signed cars and making some dollars for California," he wrote on the Twitter micro-blogging website last week.
The two-day auction is being held on Friday, Aug 28 and Saturday, Aug 29.