January 24, 2020 - Electronics
Maybe your considering selling your Dell laptop?
Despite stigmas about pawnshops being a deceptive industry, taking out a collateral loan from a pawnshop can actually provide better interest rates than traditional loan service agencies without a damaging credit score check, endless paperwork, and high-interest rates. Pawnshops can also offer consumer-protection. Price verification is nonexistent in the consumer-to-consumer market but comes standard in the pawn industry. If you’re debating selling your Dell laptop you might be pleasantly surprised at the benefits of doing business with a pawn dealer!
Before you commit to selling your laptop, it’s wise to weigh out the pros and cons of selling versus pawning. Understanding how the loan industry works helps illuminate which route you should go with to make the most economically sound decision.
When you take out a pawn loan you’ll need collateral. In this case, your collateral would be your laptop. The Dell brand has a wide range of price points for the various models. Some Dell laptops can cost as much as $1799.99 while cheaper models are only $179.99. Unfortunately, not every pawn dealer takes original retail price into consideration. You’ll want to use PawnGuru to steer clear of a dealer not willing to give you a fair appraisal!
Since pawn dealers are selling second-hand products, brand takes much higher precedence. This is why Dell laptops across the board have a pawn loan value of $123.53 with a range between $1 and $600. This doesn’t mean you can’t get a larger pawn loan than $600 for a Dell laptop that retails for a $1,000. It’s all about finding the right dealer for your pawn loan.
Of course, the nature of collateral is to use high-value investments against a loan. If you have a low-end model Dell that only costs $179.99 brand new, right out of the box—it might be more cost efficient to go ahead and sell this laptop. Almost every item depreciates after being used. Starting off with such a low value, to begin with, doesn’t help your case when it comes to pawning.
Understanding the big-picture, factors into making the decision to sell over pawning. You’ll need to do the math and look at the cost-efficiency of pawning a cheaper laptop. For example, say you need $200 to pay a bill. Your Dell laptop is not worth this much even if it were brand new. A pawnshop is willing to give a $50 pawn loan at an 8% interest rate. After three months of the loan term, you will have spent almost half of the amount you received from the loan instead of making $75 just by selling the laptop outright. Justifying hanging onto a nominal laptop when you’re in need of money is challenging.
This is just a hypothetical example, but you get the point!
When taking out a pawn loan it makes more fiscal sense to use a high-value item like a diamond as collateral. This maximizes your payout and gets your bills paid straightaway, so you can pay off the loan before accumulating too much interest. If you had a Mac Laptop worth a maximum pawn value of $600 and an average pawn value of $270 it would make more sense to pawn this item.
Imagine the exact opposite of the above hypothetical situation, except that you still have that pesky unforeseen $200 bill. Let’s say you use PawnGuru and have found a reputable dealer willing to give you $250 for a laptop that was originally worth $999.99 at the same 8% interest rate. (This is not unheard of, as some pawn dealers will offer up anywhere from 40-60% of the original retail price depending on the item).
Of course, you will want your laptop back because it’s high-quality and has more longevity than the cheaper models. Even with an interest rate of 8% it makes much more sense to be able to pay your loan to extend you to your next pay period which will prevent accumulating more interest than needed. At the end of the month, you’ll have paid your bills, acquired your laptop back, and walked away less fiscally scathed than taking out a loan from a bank or defaulting on your bills.
The best way to approach pawnshops is to use PawnGuru. Regardless of your decision to pawn or sell—you can get the lowest interest rates with the highest payouts with this site! Using the PawnGuru directory gives you the upper hand! Now, you can comparison-shop through offers within minutes. You can still get the cash you in your hands that day but instead of wasting time driving all over the city to have your laptop appraised by each dealer—you can list a single digital appraisal!
Not only can you cross-verify that you’re getting the best deal, but the protection the PawnGuru network offers is well worth using the site! Each pawnshop is rated across the platform and any deceptive businesses are reported. This maintains that the dealer who emails you offers is one that you can trust! This makes PawnGuru the safest method of pawning your items!
To make a free listing with no obligation to do any business, click here!
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