February 17, 2020 - Pawn Resources
With the exception of seasonal items, anything you have not used or benefited from in the past few months might be a convenient way to earn some cash. Why don’t you give that boost towards your vacation fund?
More and more people who have never been to pawn shops before are becoming interested in these short-term solutions. Reality shows aside, pawnbrokers can testify to this and are happily able and willing to assist customers looking to cash in without the need for stardom. Online services such as, Amazon, Craigslist, and eBay offer methods to getting rid of used stuff; however to some folk it may be more about getting quick cash and not joining the millions of competitors online. Check out the facts below so you can make an informed decision on whether or not you want to use a pawn shop.
You bring in an item of value, guitar, snow blower, power tools, or laptop to a pawn shop, if the Pawnbroker is interested in s/he will offer you cash in while holding onto your product in storage. Upon agreeing to the loan amount, you receive a ticket detailing the terms and conditions of the cash loan. The cash amount of a pawn loan will be a portion of the value of the item you brought in. When you repay the loan you to the Pawnbroker, you get back your item as you had previously left it.
You bring in your item of value, old jewelry, PS4, a few Blu-rays, or a Walther handgun to a pawn shop to simply sell. Depending on a Pawnbroker’s interest in buying your item will depend on the shop’s clientele. If there’s a local demand for the particular item and more importantly if the market value of the item can allow for a profit at resale, will influences every Pawnbrokers decision. While pawn shops buy items often, the main part of the business is giving loans. Pawn loans allow for pawn shops to earn more profit potentially. Therefore, it is more desirable in the business.
You need to get a lawnmower for the summer, a laptop for work or you’re interested in finding a new guitar. All the items that pawn shops have collected through purchases or by customers not repaying their loans will eventually be placed on store shelves for anyone to buy. Since these items are typically obtained at a low cost to the shop, customers can benefit financially by getting items in various categories discounted. Get a 60” SmartTV for 50% less the full-price market value or save a few hundred dollars with a brand name guitar.
As with every financial institution, pawn shops are heavily regulated at the local, state, and Federal levels. The NPA has previously reported that the national average pawn loan to be $150 and that 85% of all pawn loans are paid back. Interest rates will vary per pawn shop depending on your location. Every state is different, but interest charges are usually lower than credit card interest, utilizing a pawn shop never affect your credit. Many Pawnbrokers will be flexible to accommodate individuals in a financial struggle. Be sure to come prepared to a pawn shop by knowing the local and state laws, and educating yourself on your items current market value. This way there won’t be any disparities or assumptions on your item’s worth, and you can better negotiate a cash offer that isn’t far-fetched and instead more to your liking.
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