“Pawning” is a process in which you bring an item into the pawn shop in exchange for a cash loan. For example, you might pawn a gold wedding ring as collateral for a $250 loan. If you repay the loan by a predetermined date, you can retrieve your gold ring. The loan repayment amount will include interest and fees that are typically regulated by the state. You also have the option to extend the repayment time frame, although this will incur continuing interest. If you fail to repay the money on time, the pawn shop takes ownership of the ring and can offer it for resale. A large percentage of pawned items are reclaimed by their owners, but some are forfeited and thus provide inventory for the pawn shop to sell. Pawn shops also purchase items outright to resell, which is another way to provide clients with the cash they need and to acquire inventory for the store.
Some useful tips:
The first step in this process is to determine if you wish to pawn or sell your item. We offer both options, but you must consider several things, among them whether you want your item back, your ability to repay the loan, and the amount you expect or hope to receive. Remember that as a business, the pawn shop needs to make a profit if it ends up selling a given item, as well as offer that item for an attractive price to potential customers. So although your old wedding ring may be worth $500, a pawnbroker would not be able to stay in business by offering $500 in pawn or purchase for that ring.
Another point to keep in mind, especially when considering pawning or selling something that has either ‘collector’ or ‘sentimental’ value, is that pawn shops are resellers, not collectors. Your vintage 1977 Star Wars figure might be highly desirable to a purveyor of old toys, and you might even get top dollar should you find the interested party, but a pawn shop may not be able to accommodate the mere possibility that a collector will just happen to stroll in and buy that Star Wars figure for what it’s actually worth.
Know your product. Know its value. Get it appraised if applicable, as in the case of coins or jewelry. The more information you have to offer, the greater the chances that negotiations regarding a mutually acceptable price will be successful.
Set a minimum price in your mind that you would deem acceptable before you go in. This way, there is a solid starting point for any continued discussion. If you know that you won’t part with your ring for anything less than $250, you will know whether or not the offer that is made justifies further dialogue.
Metro Pawn & Gun purchases or offers loans on many different types of merchandise, including firearms, jewelry, coins, precious metals, electronics, tools and many other things. So stop in and see how we can help you with your needs!
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