How to Pawn an Item
While some pawnbrokers knowingly sell stolen property, they are the exception, not the rule. Most states have enacted laws applicable to licensed pawn shops that assist in identifying stolen property. Prices for items can vary greatly among different pawn shops. Pawnbrokers make money by lending money based on the value of the pawned item (collateral) as well as items marked up in price for resale. If you do not repay the loan within the proscribed time period, the pawnbroker is free to sell your item.
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Instructions
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Start with an acceptable item to pawn of which you are the legal owner. Most pawn shops will offer to either purchase your item or allow you to borrow money based on the value of your item. Common types of acceptable pawn items can include televisions, CDs and DVDs, guns, computers, tools, CD and DVD players, watches, jewelry, musical instruments and microwave ovens, among many other items.
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Take the item to the pawn shop, where you will be required to provide a state-issued identification card or a valid driver’s license. The pawnbroker will appraise your item and tell you how much he will pay or loan.
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Provide a fingerprint in jurisdictions where you are required to do so. Pawnbrokers usually have your fingerprint placed on the sale or pawn agreement.
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Sign the pawn agreement form and pawn ticket. Be sure to keep the pawn ticket in a safe place, since you may need it to prove ownership and to claim your property back.
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Receive proceeds of the sale or loan. If you are borrowing cash for your item, you must return to the pawn shop and pay interest by the due date. Otherwise, you will lose your item. Interest rates charged by pawnshops range from 4 percent per month (New York) to the usual maximum legal interest rate of 10 percent per month.
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Tips & Warnings
You may wish to shop around for the best price for your item by visiting several pawn shops before making the decision as to which pawn shop you want to sell your item to.
Property that is stolen can be identified by the pawn shop and law enforcement agencies. Even if you did not personally steal the item, you can be charged with and prosecuted for selling and receiving stolen property.
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Comments
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luismc27
Nov 13, 2008
WOW!!This aricle is yet another way in how people have a terrible misconception of pawn shops. Please allow me to educate you...Pawn shops do not knowingly sell stolen property EVER!!Pawn shops work more closely with the local law enforcement than any other place of business, how? by writting police reports on anything they loan money against or buy out right wether its fifty cents or 50,000 dollars. The customer must give a government issued ID, sign a police report and thumbprint that police report thereby stating the item is theirs. Any other mom and pop store of any kind can also buy merchandise, I guarantee that if you take a ring to a regular jewelry store to sell it they will not turn you away, the difference is they are not REQUIRED by LAW to write a police report on that item and those stores can sell that item as soon as it is in their possesion. Pawnshops have to hold merchand
