July 21, 2020 - Pawn Resources
The city of Detroit, Michigan is well-known for its pawn culture. In fact, there is even a famous reality show called Hardcore Pawn which is based on a Detroit pawn shop in the 8-Mile section of Detroit. If you live in Detroit and if you are interested in pawning items such as jewelry, clothing, musical instruments, or anything else, then you need to know how to do it right.
Although the process of selling or pawning items at pawn shops is relatively straightforward, there are a number of important laws related to pawning that you need to be aware of. In this blog, we will explain everything you need to know about selling and pawning items at pawn shops in the city of Detroit, Michigan.
According to Michigan state law, businesses that want to operate as pawn shops in Detroit must become licensed pawnbrokers in the state. This means going through all of the necessary steps to obtain permission from the state government to operate legally. Although there are many legal pawn shops in Detroit, there are also a number of illegal pawn shops. So, before you do business with a pawn shop, you want to make sure that the pawn shop is a fully licensed pawn shop. You can do this by calling the Michigan State government and verifying the license status of the pawn shop.
Licensed pawnbrokers in the state of Michigan can only give pawn loans for items that meet the following conditions: 3-month loan maturity timeline and 3 percent interest. So, if a pawn shop in Detroit informs you that they can only give you a pawn loan for your item that has a 1-month maturity timeline and a 10 percent interest rate, they are lying and they are also breaking the law. If this is the case, then you should not do business with this company, and you should instead seek out another pawn shop to work with. Most likely, if the pawn shop tells you that the interest rate will be higher than 3 percent, it is an unlicensed pawn shop.
Whether you are selling or pawning your item at a Detroit pawn shop, you will have to negotiate your deal. Typically, what happens is that the pawn shop manager will quickly appraise your item and will make you an offer based on what he or she thinks the item is worth. Then, it will be up to you to either accept the offer or to make a counteroffer. Sometimes, if you make a counteroffer it will be accepted, and other times, it won’t.
If you are unhappy with the offer, you can try to find a better one from a different pawn shop. However, if you are happy, you can agree to the deal and complete the transaction. If you decide to pawn your item, you will have to pay back the loan plus interest within the 90-day period. Otherwise, the pawn shop will get to keep your item. Pawn shop owners in Detroit are only allowed to legally charge a $3 storage fee per month per item. So, if a pawn shop tries to charge you more than that, they are attempting to break the law.
Despite the fact that many pawn shops in Detroit are located near each other, there can be a massive difference between the prices that each shop is willing to pay or loan you for your items. For this reason, it is crucial to be able to easily compare the prices that each pawn shop is offering. In the past, you used to have to drive around from shop to shop in order to get quotes. However, now, you can simply use PawnGuru.
On the PawnGuru platform, you can post the item that you want to sell or pawn. Then all of the pawn shops in Detroit who are interested in buying your item or giving you a loan will make you an offer. Then, you can just choose the offer that you like the best. It is that easy! Getting great deals from pawn shops for your belongings has literally never been easier. Once you select an offer, you just have to drive your item to the chosen pawn shop and exchange your item for cash. You can get the money in your hands in a matter of hours. Sometimes, you can even get it in less than an hour, if the pawn shop is very close to you.
If you received a loan for your items from a pawn shop, then the pawn shop will issue you a receipt for your items. This receipt will contain your name, your address, and a description of the item along with the loan value. A copy of the receipt is also issued to the local police department in case there is a dispute between you and the pawn shop, and to make sure that none of the items have been stolen.
If you would like to recoup your items from the pawn shop in Detroit, then you must return to the pawn shop within ninety days and pay the full loan amount along with the accrued interest. You must also have your receipt in your hand when you show up to pay off the loan. A failure to pay off your loan plus the interest or to show up with a copy of the receipt could potentially result in you losing your item to the pawn shop. If you lose your item to the pawn shop, then the shop will sell it and your debt is forgiven.
If, for some reason, you believe that the pawn shop you sold your item to or received a loan from did something illegal or unethical, you can inform the police in your area. The police will go through your receipt and the receipt from the pawn shop. They will take a thorough look at what happened. If it turns out that you are in the right, then the pawn shop will most likely be forced to make you whole.
Sometimes, Detroit pawn shops lose items that they gave out loans for, and other times, they have items stolen. In both cases, they are liable and are legally obligated to make the borrower whole. So, when you take out a pawn loan from a pawn shop, you should rest assured, knowing that the law is on your side if something happens to your items while they are in the pawn shop’s custody.
After you use PawnGuru to sell or pawn your household items to local Detroit Pawn Shops, there is a very good chance that you will want to go through the process again. This is because using PawnGuru allows you to find the best possible Detroit pawn shop offers and helps you to get cash in your hand in a very short amount of time.
So, when you are ready to pawn or sell again, you can go through your home and try to find a great item. Items that pawn shops love include jewelry, watches, clothing, laptops, smartphones, memorabilia, clothing, etc. The second time around, it is even easier to use PawnGuru because you will already know exactly how it works. You may even already have learned which pawn shops make the best offers and are the most reputable.
Pawning with PawnGuru is the single best way to go through the pawning process. PawnGuru prevents you from having to drive around to multiple pawn shops or to make a bunch of phone calls in order to help you find the very best pawn shop deals in Detroit. So, you can save time, stress, and money by using PawnGuru while getting the best deal possible.
Unlike with other selling mediums such as Craigslist and eBay, pawn shops allow you to stay as safe as possible when you are trying to get money for your items. This is because pawn shops have actual business premises, and they have owners and managers whose identities are known and who are accountable to the law.
Craigslist and eBay are rife with scammers and con artists. So, when you use PawnGuru to get cash for your items, you are optimizing your safety while ensuring that you get a good deal. Safety should always be a priority, and thus so too, should pawning. There is no need to risk getting robbed or scammed on Craigslist or eBay when you can just use a pawn shop with the help of PawnGuru and ensure that your transaction is safe and smooth.
PawnGuru values the safety of all of its customers and creating safer transactions is one of the core reasons why PawnGuru was founded in the first place as an alternative to Craigslist and eBay.
David Stiebel is one of the cofounders of PawnGuru. David was educated at MIT, where he studied Math. He subsequently worked at Bain as a data scientist before starting PawnGuru in 2015. He started PawnGuru to build a better tool for pawn shops and consumers to connect.More Articles