Pros vs Cons of Pawnshops and Pawnbrokers
Have you ever been curious about what goes into pawning off an item? Or maybe you have an item you’re thinking about pawning but are unsure about your course of action?
Keep reading to find out more about pawnshops and pawnbrokers!
A pawn shop is a business that allows customers to receive loans in exchange for their valuables or rare items. These valuables include pieces of jewellery, precious stones, musical instruments, cameras, high-resolution televisions, and gadgets that fetch a hefty price tag.
Trusting a pawnshop can be intimidating, especially when you hear all the negative things about them.
Before selling or pawning off your precious items, you should know the advantages and disadvantages before even stepping in the front door.
Are you looking for a pawnshop near the Bronx area? Visit Gem Pawnbrokers Bronx today for more information about how you can pawn with us.
Advantages of pawnshops
Quick processing speeds
An advantage to acquiring a loan with a pawn shop is the processing speed. Bank loans can take weeks to process verification and ask you for a lot of documentation. However, in a pawnshop, you can get a loan by walking through the door. But just like banks, you need collaterals to loan in a pawnshop.
The second advantage and reason why most are choosing pawn shops are because of their no-credit policy. A pawnbroker isn’t worried about your negative or positive credit score - their only concern is the value of your item.
Variety of items to pawn off
Pawnshops will take almost any item you have for a reasonable price. Items that seem worthless are gold in the eyes of pawnbrokers so be sure to keep an eye out for items that pawnbrokers love and will take for a high price.
Here are some items you can pawn off that a pawnshop will most likely get:
- High-End Electronics
- Video Games and Consoles
- Gaming systems
- Books, especially first editions
- Sporting goods
- Board games
- Workout equipment
- Children’s items
- Homie decorations
- Camping gear
- Hunting equipment
- Cars and other vehicles
Pawnshops are also wary of fake items being brought in. They usually have an army of authenticators at their arsenal, making it difficult to dupe them (if you're a cheat, this might not be great for you!). But since everyone should be honest, having authenticators on hand works to your advantage because they can up the price of the item you're interested in selling!
You can get your item back
If you pawn off your item, you can still get it back. This is great for those that have valuable items that need money immediately. So you won't have to say goodbye to your heirlooms or special Pisces forever.
Secure Trading and haggling
Not satisfied with the price they offered? No problem! Pawnbrokers are used to haggling with customers that want more value for their item and they accommodate by negotiating with you. Keep in mind that they have to refurbish and re-sell your item so you will most likely not get your desired amount.
Finally, the best advantage is almost unlimited loans. It all depends on how many items you bring in!
Disadvantages of pawnshops
With all that's good and amazing about pawnshops, there are, of course, disadvantages to pawnshops. But they are easily mitigated with the right strategy.
Here are some disadvantages to keep in mind:
- Higher interest rates if you want to get your item back
- They sometimes offer lower amounts when negotiating because they have to re-sell the item when the time comes
- Running the risk of losing your item if you don't return the loan with interest
Another drawback to pawnshops is the interest on their loans. Depending on the company, interest rates can be 5% to 25% a month. But, you can risk it if you're strapped for cash as they usually don't ask as much as banks would do. Those that are in deep trouble, and cannot get a loan at the bank, will find pawnshops convenient.
There are also items that pawnshops refuse to buy or are sceptical about receiving. You might have a challenging time pawning the following items off:
- Cheap items in general
- Rare animals and fish
- Motorcycle helmet
- 22-inch rims
- Crutches and other medical items
- Disney VHS tapes
- Fake items
Besides being aware of the disadvantages, a safety net for buyers and sellers are contracts. Most pawnshops provide contracts, especially for items that are of high value. This is to ensure the client that their services are legitimate and trustworthy, like Gem Pawnbrokers.
The verdict: Are pawnshops worth going to?
Yes. Pawnshops are a great way to get money if you need it immediately and want to avoid long processes you usually have to go through - unless the pawnbroker suspects your item is inauthentic.
If your funds are running and you’re in dire need of a few hundred bucks in cash on the go, pawn shops are a great way to get your money quickly, especially compared to a bank. But if you don't prefer the high interest rates and are willing to wait for weeks at the bank, a pawn shop isn't your best bet.
Just keep in mind that you can negotiate the prices of most things when in a pawnshop! It's actually common practice to haggle prices up or down. Some think of it as a sport!
Gem Pawnbrokers have reliable and professional pawn services
Gem Pawnbrokers work diligently to redefine the stereotypes and misconceptions of what the pawnbroking industry is. We strive to maintain an unmatched level of transparency, honesty, and integrity in all our customer interactions.
Speak to us about pawning opportunities such as buying or selling valuable items, get in touch today and we can help you find better solutions with your financial needs. Visit https://www.gempawnbrokers.com/ to learn more.
For your more valuable items, you can set an appointment through our website for more security.