The Advantages of a Pawn Shop

Pawn shops sell quality items at low prices.

A pawn shop is a store in which consumers can find great deals for quality products. Individuals who need money can sell their belongings to pawn shops as collateral for a small loan. Pawn shops loan these individuals a percentage of the value of their belongings and sell the items for considerably more than the price they paid for it if they are not paid back. Therefore, pawn shops are one way to borrow money.

History

Pawn loans can be traced back to ancient China. Throughout history, pawnbrokers have bought and sold goods from people of all social classes. In fact, according to Acme Pawn, King Edward III of England may have been a customer at pawn shops in the 1300s. In the early days of America, pawnbrokers played a vital role in providing consumers with credit. As banks, credit card companies and other financial institutions have risen to prominence, pawn shops are no longer the vital force for consumer credit they once were.

Merchandise

Many pawn shops will accept any item of value that can be re-sold. For instance, gold, jewelry, watches, musical instruments, furs and bicycles are commonly accepted items at pawn shops. Some pawn shops may accept bigger items, such as mopeds or even cars. Other pawn shops may accept designer clothes and furniture. If you plan on selling items that are not usually accepted at pawn shops, call ahead to ensure that the pawn shop will accept them.

Loans

If an individual who brings his personal item to a pawn shop as collateral for a loan cannot pay it back, the item will be placed on sale at the pawn shop. The time frame during which you can repay the loan before your item goes on sale varies by pawn shop but must be clearly stated before you agree to the transaction. You will receive a ticket for the item you pawn to claim it in the future. If you do reclaim your item, you may have to pay a small fee to the pawn shop for holding your item in addition to the loan repayment amount.

Sellers

You can also go to a pawn shop with the express purpose of selling an item. Instead of offering you cash for your items, some pawn shops may offer you credit in the form of a pre-paid debit card or store credit. It may help to do some research on the value of your item to give you better bargaining power with the sales clerk or owner of the pawn shop.

Buyers

Items for sale in pawn shops are generally used but in good condition. Pawn shops are popular places to look for expensive items, such as watches and jewelry. There is the misconception that pawn shops sell stolen or knock-off merchandise, but pawn shops are required by law to cross-reference their merchandise with police and will vouch for an item's authenticity. Most pawn shops have a no return policy so make sure to inspect any items thoroughly before purchase.

References

• Acme Pawn: History of Pawn
• Cash America: Pawn Loans
• Money Crashers: Buying from Pawn Shops
• What It Costs: What It Costs to Sell at a Pawn Shop

Resources

• US Pawn Directory