Whether you’re in a pickle over an unexpected medical bill, your credit card re-payments or just desperately needing cash, getting a quick loan at the bank isn’t always that easy. It’s even more difficult if you don’t have the best credit score, or worse, are blacklisted.
One of the quickest solutions is a visit to your local pawn shop. However, the question remains, to pawn or to sell? The answer to this question is dependent on many contributing factors.
Pawning vs. selling may appear similar, but there are quite a few differences that set them apart.
For customers who have never used or even visited a pawn shop before, let first start by
understanding the differences between pawning and selling.
Both concepts refer to giving up an item for financial gain. However, with selling the item you lose ownership altogether.
When you pawn, you can still get the item back as long as you repay your loan. At
face value, it may look like pawning is the better option, however, you will soon find out that there are various factors to consider before choosing the best option for you.
Pawning an item involves taking out a loan against the item and using it as collateral. An agreed amount is then paid over to you and your item is kept with the pawnbroker until you have repaid your loan in full.
Should you not be able to repay the loan, the pawnbroker then has the right to sell it to make back the money borrowed.
Selling an item involves you simply bringing in the item to the pawnshop, agreeing on a price with the broker and you leave smiling, cash in hand.
The first step in deciding whether you would like to pawn or sell is to determine how treasured or even sentimental the item is to you. If the item is a family heirloom or of great importance to you, then you will most probably want to pawn it, as opposed to selling it.
The value of the item is also an important factor to consider. A high-value item such as a Tag Heuer watch will continue to increase in value as time goes on. Pawning an item means that the item still belongs to you and you will still have it down the road when it appreciates. Pawning, unfortunately, does not guarantee a lot of cash.
A pawnbroker will provide a rough estimate of the total value of the item and then agree to lend you a percentage of that total. It is also important to remember that interest will be charged on top of the value of the loan.
Deciding what is more important to you is crucial, more money, or have your item returned. It is important to remember that not all items are accepted at all pawn shops. The most common items accepted are gold and diamond genuine jewelry, electronics, laptops and smartphones, and even furniture.
So, before you rush in make sure the item that you have is accepted by most pawn shops.
What is great about both pawning and selling is that you will be able to get your money the same day. Unlike financial institutions where it can take days, even weeks to have access to the funds, using a pawn shop is one of the quickest ways to get cash.
If you are considering pawning or selling an item for the first time, start by doing some research.
Know the value of the item you are wanting to pawn or sell and the various risks associated with each option.
We at Capital Pawn pride ourselves in offering the highest prices for your unwanted goods with flexible payment terms on pawn loans. Contact us today and we will help you make the best decision for your needs.