January 18, 2018
Pawn shops work by serving their two primary customers: people looking for a good deal on stuff and people who need some cash.
Let's start with people who need cash. A pawn shop can give you cash either through a pawn (a loan) or through buying your unwanted stuff.
1. What is a Pawn Loan?
The term "pawn" comes from a French word meaning "pledge" and "security." When you pawn an item, you are pledging your item to your pawn broker as collateral for your loan. In other words, you give your pawn broker your valuables and he (or she) loans you some cash as well as a pawn ticket (we'll get back to this). When you repay your loan, your valuables are returned to you.
If you cannot repay your loan, then you have to let your pawn broker know as soon as possible so that you can try to work something out. Otherwise, if you don't repay your loan on time, the pawn shop will sell your valuables to recoup their losses.
Now back to that pawn ticket I mentioned.
Your pawn ticket is your receipt. It contains important information on your loan such as the term (how long you have to pay it back), the fees, and the description of your item (condition, quantity, serial numbers, etc.).
Lastly, the fees for your loan will vary from pawn shop to pawn shop. But, generally speaking, pawning is best for short-term loans because that's their specialty.
2. Why do pawn shops want to buy my stuff?
Pawn shops buy your stuff because it creates a win-win situation where you get your cash immediately and the pawn shop can make a profit by selling your item to someone else.
Since the pawn shop has to sell your item at a fair price to its customers, they will pay you a little less than your item's resale value so that the pawn shop can make a profit on the time and money that the pawnbrokers put into selling it. Learn more about selling your stuff.
All types of people enjoy shopping at pawn shops because you can find one-of-a-kind treasures, collectibles, jewelry, video games, TVs, electronics, and more for way less than retail prices!
Whether you're looking for a good deal, a loan, or if you just want to turn your clutter into cash, come visit Mr. Deals! We have a large, clean showroom and friendly, professional staff.
Monday to Saturday: 10am to 7pm.