Need cash in a hurry? If you have a garage full of stuff that has value but is only gathering dust, you might have considered to go to a pawnshop at least once. And although you could walk away with cash in your pockets, beginners should learn the ins and outs of how these transactions work before they even attempt to enter a pawnshop.
Pawnshops are now seeing more and more people that are looking for short term solutions without having to sell the farm. Should you need something more than a short-term solution, you can always come into Capital Pawn and speak to them since they are the number 1 pawn shop in Johannesburg. You don’t need to feel ashamed or embarrassed when heading to a pawn shop, but there are some things that you need to know.
The Bad Things You’ve Heard Are Less True Than You Think.
Pawn shop aren’t the shady and dark places they often appear to be in movies and sometimes in the media. Pawnshops have been unjustly vilified by the mainstream media and so, most people perceive them to be dirty and shady places. In fact, the majority of them are well-lit stores run by people who pride themselves on providing good customer service.
This is how a pawnshop works:
You can get a collateral based loan, that means the loan is secured by something of value. This doesn’t mean something that has value to you but means nothing to someone else. You take something you own to a pawnshop and if the pawnbroker is interested, he will offer you a loan. The pawnbroker will then keep your item until you’ve paid down the loan. The loan amount won’t be the exact value of the item though, as the pawn shop will have to sell your item should you not pay back the loan, in order for them to make their money back.
Repaying The Loan
You usually have to options when it comes to repaying the loan:
- Return to pay the full amount plus the interest before the deadline, which the pawnbroker will explain to you. You can agree to pay it down monthly as well where the pawn shop will give you x amount of time to do so.
- Don’t repay the loan so the pawn shop can keep the item/s. Aside from not getting your valuables back, there are no other consequences, in other words your credit score will remain untouched and no one will come looking for you to repay the money.
What A Pawn Shop Wants And Doesn’t Want?
Keep these things in mind when you want to pawn something:
- Don’t offer anything is outdated, difficult to store or that is cheaply made.
- Do go with unwanted jewellery (gold, silver and diamonds) and old coins. Should be unsure about something, phone the Capital Pawn and they will advise you or ask you to bring in the item so they can check it and give you a price. Don’t be offended by this, the pawnbroker is just trying to make sure that you and the item is legitimate.
Also remember that you’d need a South African issued ID and proof of address just to prove you are legit.
How it works
Fill out our online enquiry form and we will contact you as soon as possible.
If you accept our offer we will ask you to come to our secure facility for a physical inspection of your asset, and to complete the necessary paperwork.
When the loan amount has been paid back the asset is returned to you.