January 04, 2020 - Equipment and Tools
But what is the difference between pawn vs. selling? Well, a lot!
We’ve put together 5 important tips to know while you make your decision.
First things first, you have to know the difference between a pawn and a sell.
When you pawn an item, the shop gives you a loan you agree to pay back over a designated amount of time. Fees and interest are often included. Once you pay back the loan, you get the item back.
Selling an item is more straight-forward. You bring your item into the shop, where they determine how much money they are willing to buy it for. Once the transaction is complete, they resell the item at market value.
Market Value is the amount of money an item can sell for in a specific market.
Musical instruments are some of the most pawned items in the industry. This means will be difficult for you to get a lot of money back for your bass. On the flip side, there is a small chance they will deny you completely.
If a shop already has a few basses they will give you a lower buying price than what your bass is worth on the market.
Should you decide to pawn your bass rather than sell it, you will be able to work with the shop on a payment plan.
Your loan will be based on the market value of your item. The payment plan is 30-days but varies by state. If you do not pay the loan back by the end of that 30-days you can file for an extension or surrender your bass as collateral payment.
Whether you pawn or sell your bass, there are easy ways to increase your loan or payout amount.
Make the necessary repairs to your bass– fix a string or replace any broken parts. Make sure it is clean and functioning.
As you prepare to sell, include any accessories you have. From a tuner, straps, bow, to a case, these additions will increase your final payout amount.
Don’t be afraid to say no to their first offer.
This tactic is more useful when selling vs. pawning but feel free to use it in either scenario.
Once you weigh the benefits and shortcomings of pawn vs. selling you can make the right decision for you.
If your bass means a lot to you and holds a lot of sentiment, you may want to consider a pawn loan. If you want to get a better bass later on and need money fast, selling it is a great option!
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