Have you ever visited your local pawn shop? You've probably noticed it but never actually gone inside. The local pawn shop is a great place to find a range of things you might need and even a few treasures. Let's investigate if a trip to your local pawn shop will be worth it and if it is a good place to buy and sell things.
Pawnshops are known for three things:
- You can buy stuff
- You can sell stuff
- You can borrow money based on a piece of collateral
For some people, a pawn shop is an ideal place to pick up a bargain or two. Most pawnshops display some of their items outside their shop and on sidewalks to attract customers to their shop. They generate a great deal of foot traffic into their stores this way.
Pawnshops sometimes offer items up to 50% less than at a retail store. Pawnshops also offer pawn loans which is an attractive option for many people who live from payday to payday. No credit checks are carried out and the debt is relatively low risk. If you keep to your end of the bargain and re-pay your loan you get to keep your item you put up as collateral.
What makes pawnshops worth it?
You can literally sell anything at a pawnshop (well, almost anything)
Jewelry and electronics might be some of the most common items people think about pawning, but you can literally pawn anything. Jewelry, musical instruments, and electronics tend to sell the best at pawnshops. You just to find a pawn shop that is willing to buy your item and re-sell it again.
Different pawn shops specialize in different things, so just be willing to shop around for the pawnshop perfect for you.
If you pawn, you can get your item back
If you choose to pawn an item it does not necessarily mean it's gone forever. Once you have paid off your pawn loan, together with the interest owed you get your item back. It has been recorded that up to 85% of people who take out a pawn loan get their item back.
Now that you have decided that a trip to your local pawn shop couldn't harm anyone, take a look at the following tips we've put together to make sure you get the best out of your next pawn shop experience:
Find the right pawnshop
Do your homework. Research about the different pawn shops in your area as well as a few online ones. See what other people are saying about them and their overall experience.
Then, choose a reputable one that you feel comfortable with.
Decide if you want to pawn or sell
Be sure to educate yourself on the difference. Weigh up the pros and cons of each option and decide before you step into the pawnshop.
Don't be afraid to negotiate
At the end of the day, a pawnshop owner is a re-seller who wants to turn a profit. Decide on the minimum you will accept for your item and be prepared to walk away if they are not able to give it to you.
Pay your pawn loan on time
If you have decided to take out a pawn loan be sure to pay back the loan and interest on time as agreed. Not doing so will cause you to lose your item in the end or incur additional charges to your loan. So, as you can see pawnshops are definitely worth it.
Not only can you pick up a bargain at your local pawn shop, but you might even pick up a treasure or two.