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According to the History Channel, the pawn shops of today operate as mini-banks for millions of unbanked Americans and they also serve places for people of all backgrounds to buy and sell items. America’s 12,000 or so pawn shops deal with a huge variety of items including musical instruments, jewelry, and electronics.
What does pawning mean?
“Pawning” means that you give the pawn shop an item in exchange for a cash loan. For example, you might give them your mountain bike as collateral for a $75 loan. If you repay the loan by a certain date, typically 90 to 120 days after you pawn the item, you can retrieve your bike. The loan repayment amount will include interest and fees that are regulated by the state.
If you don’t repay the money on time, the pawn shop takes ownership of the bike and can offer it for resale. Most of the items pawned (about 70%) are reclaimed by their owners and according to the National Pawnbrokers Association’s 2010 Trend Survey, the average pawn loan is $100. Pawn shops also purchase items outright to resell.
Working with a pawn shops can be a good deal for both a seller and buyer, but not always. Following are some tips for selling and buying at a pawn shop.
How to Sell to a Pawn Shop
How to Buy From a Pawn Shop
Finally, whether you’re a seller or a buyer, it is worth your time to consider your other options before going to the pawn shop. While working with a pawn shop may be convenient, you might be able to get a better deal on Craigslist, eBay, or even in a garage sale.
I've been thinking about pawning off some of my jewelry for a loan. We're behind on our mortgage payment, and I need some extra cash. Hopefully, the promotion they are offering me will help in the future, but for now I just need to get some extra money.
I did not know about pawn shops. This will help me. Thank you!
I like the tip about proving what you have. I always like to get a professional's opinion before I pawn anything. That way I know I'm getting the best deal possible.
You make a good point in stating that pawn shops of today operate as mini-banks for millions of Americans. You also mention researching online for reviews on pawn shops in your area to find a reputable one. I think it's a good idea to trade in your old or broken jewelry at a loan service so that you can get money for the old jewelry that you aren't wearing anyways!
It is certainly true that pawn shops have gotten more exposure and attention as of late thanks to television. I would say that I see this as a good thing, as it has allowed people to get a better idea of what pawn shops really are. I've felt in the past that there was a negative perception surrounding them, but, as the article discusses, there are certainly very reputable pawn shops.
Probably you should pay a fee every month just to extend your pawn. Something like that may have in the contract.
I really appreciate your advice about researching pawn shops. I have some items I want to pawn, but I've never done it before. I didn't realize that it's better to look for places that specialize in certain items. I will keep your tips in mind.
Thank you for the tips, this would be really helpful.
This is a great guide to those who are going to pawn or sell their things at the pawn shop. Keep up the good work on this blog :)
My college room-mate was always pawning stuff and reclaiming later. For him it worked well, as it probably does for many others. This advice seems good and I've never seen it on other personal financial advice sites.
I love the show pawn stars, but I was never good at getting great deals at a pawn shop. I usually try calling around to see what offer is the best. Thanks for this article. It will definitely help me in the future.
I like the advice to use the internet to narrow down your search. It can be quite difficult to go from shop to shop to see which one will give you the best price for your items. If you can do a little research online and find what items they specialize in, it can shorten your search.
My husband and I have been wanting to sell some things before we move out of state and I think that the pawn shop is the way to go. I have been researching different tips for the whole process and getting the most out of whatever it is you are selling. These tips have helped immensely and I am really confident that we will have a good experience. Thank you so much for sharing this advice and insights!
Great tip about doing your research! You can find some pretty neat stuff in pawn shops, but I would agree that you want to make sure you know the value of it. My husband loves going to pawn shops, but he's always very cautious about researching things before making purchases.
Can a pawn shop take your item. If you had a hold placed on it. I was given a hold date on the 20th of August 2012 for September,5 2012. When I came in on the 5th of September.The pawn shop sad they sold my item on August,22 2012. Can they just steal my item like that. I think it was a inside job. Can someone please give me some feedback on this please.
Thanks for the share. I recently have run into some finical troubles and have been looking into getting a pawn shop loan for quite some time. This article definitely answered a bunch of questions I had regarding the whole process. Thanks again!
I have always thought that most pawn transactions (true pawn, not selling to a pawn shop) could be done away with if only people could manage their cash just a little bit better. I think there are people who just live their lives pawning and claiming the same items over and over again, all because of some minor timing differences between their cash out and their cash in. It would be nice if there were a way to counsel these people so that they could break the cycle, but I guess there's no money in that, is there...
Thanks for this post! This was really helpful to me. Keep up the good work on this blog!
I've never had to go to a pawn shop before so this is really helpful. I've been thinking about pawning some old jewelry I don't need anymore. It's been a rough month without a job so I thought that could help get me some extra cash.
This is a great set of tips. I have a friend who has been considering trying out the whole "pawn scene", and our pawn shop in Calumet City IL probably has the best reputation I've heard of any pawn shop. This should really help, thanks!
The effectiveness of pawning will always depend on the customer. That's all!! :)
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