Some people may never go to a pawn shop their entire lives, which isn’t a bad thing, but it may mean they are simply uneducated on the matter. This blog entry is to help enlighten everyone on pawning an item versus selling it.
It is true that the answer is not complex. If you want your item back you “pawn” it, if you do not want it back you are “selling” it. Either way you are getting some sort of monetary value for your item. When you go into any pawnshop looking to sell; the price you receive is based off of the value of your item, how much the pawnbroker can resell it for and how quickly the item will sell. When selling an item the pawnbroker will often negotiate with you until you agree on a price. Selling means you get to keep the money, but lose your item.
Pawn loans work in a similar way. The value of your item is still similarly based on the aforementioned criteria, but instead of getting to keep the cash, you have to pay it back. The amount you get will be a percentage of the current market value of your product. Your item acts as collateral until you have paid your loan back in the allotted time. Pawn loans can be a great way to get quick cash without a credit check or hassle. If you don’t repay your loan after your grace period or extension your item becomes forfeited to the pawn shop. Pawning means you have to pay the money back, but you get to retrieve your item. The loans will accumulate interest, but Garden City Exchange has the lowest possible interest rates for pawn shops (in case you were wondering).
Obviously, the more valuable items will bring you more money in both pawning in selling. Pretty much anything could be sold or pawned, but high-end items such as jewelry, diamonds, watches or vehicles will get you a pretty penny. It is your decision whether or not that pretty penny is yours to keep or your responsibility to pay back. Just make sure that if you take on a pawn loan you are able to pay it back on time.
Based on your financial needs, and whether or not you want to give up your prized possessions play the determining factors on which option is best for you. Do you need quick cash and have the means to pay it back in time? Then, go pawn. Do you want to get rid of that fancy item collecting dust in your basement for some extra money? Sell it.
Surely, you have seen one of the many pawn shop shows on TV to get the general gist of how pawn shops operate, but hopefully this was helpful too!