Q: What is the difference between selling an Item & Pawning it.?
A: Selling an Item means you don't want the Item anymore.Generally you will get more for your Item this way,do to the fact a Pawnbroker dosn't have to hold it as long before he can sell it.Thus getting a faster return on his investment.
Pawning an Item means you intend to come back for it at a later date.At this time you will have to pay back the principal amount plus any charges that are incurred.
Q: What do I need in order to Pawn?
A: You will need at least 2 pieces of I.D., at least 1 piece should be photo I.D. and you will have to bring in an Item of value to leave as collateral to secure the loan.The Item you select to bring in should be in good working condition.A Pawnbroker generally will not accept anything that is broken.
Q: What if I have a bad credit rating,can I still get a loan?
A: Yes! The Pawnbroker lends money out solely on the value of your Item you bring in.Not on your past credit history.The loan is considered payed in full at the time of the transaction.Thats why you get less money for a Pawn than a sale of the Item.If you don't come back for your Pawned Item,the Pawnbroker has to sell your Item to recover his incurred costs I:E: Storing your Item for months
and having his money tied up for a long period of time.
Q: Why are interest rates a lot higher than, say a banks?
A: The rates are higher because unlike a bank a Pawnbroker has to physically store the item pledged as collateral for the loan.Creating high costs of doing business
I:E. Maintain a large area for storage,power ,heat,insurance
labour etc.Also there is a greater risk that some Items might be stolen.If they are the Police will sieze the Item and the Pawnbroker will be out the money.Also some merchandise that is left in might be broken and the Pawnbroker has to pay to get it fixed.I:E. A t.v. comes out of pawn and plays good for an hour than shuts off.The Pawnbroker originally tested it before and it appeared to be in good working order.
All Pawnbrokers fees have to be included in their interest rate, which in appearance seems to be high.Unlike a bank which charges seperate fees on top of their interest rates.
Q: Am I safe buying goods at a Pawnshop?
A: Yes You are actually safer buying from a pawnshop than you are from other venues like garage sales or buying privately.Pawnshops are strictly inforced by local officials.
Pawnbrokers and staff have to submit to a criminal record check as well as be licensed and bonded.
Any Item brought into a Pawn or Second Hand store has to
go through a complete check as well.Serial,model number and a complete description is submitted to the police which is then run through their computers to see if it is stolen.
