Updated: Sep 29, 2019
Did you know Pawn Shops have existed for thousands of years offering a short term lending option? That's right, pawns have existed this long because it is a great way to offer short term loans to those in need of cash. The benefit of Pawn Businesses is that it doesn't require credit or comprehensive check of your history to be able to benefit from a short term loan.
Here are 5 great reasons why people go to Pawn Shops.
1. Pawning an Item
The core business of a pawn shop is providing cash to those in need of short term loans. Typically any item of value that may be in your house from a power tool to a gold ring can be used to receive cash to those in need. Going in to a Pawn Shop, an employee will evaluate the item based on its resell value and provide a pawn. Once the item is pawned and the customer received cash, depending on the pawn business you typically have anywhere from 30 to 90 days to return and pick up the item for a storage fee. Currently at Pawnderosa Pawn Shop if you receive a $40 pawn for a television, it will cost you $48 to pick up the item in the first 30 days upon return. Often times this storage fee is much cheaper than the cost it would take to default on a bill.
2. Selling Items
Normally people don't want to go through the hassle of selling an item or meet a stranger at a personal loaction. If you just want to get rid of items and get cash, Pawn Shops can be a great way to unload unused things in your house. For Example, you may have just bought a brand new 50 inch television in your living room and the previous one is sitting in your garage collecting dust. You can bring these to a pawn business and receive cash quickly instead of allowing that item to sit and depreciate.
3. Getting Great Deals
Pawn businesses typically place their business in a spot that will allow them to be close to pawn customers. However, this often times not the same location that would provide them the most money when trying to sell items. This means going in to a pawn business, you can often times see items at a large discount in comparison going to any other type of new or used store. Pawn businesses sell jewelry, televisions, musical instruments, firearms, electronics and much more. There is a market for people that will actually go to pawn shops to purchase items and then resell them through using other methods. So while you are going to yard and estate sales, pawn shops can also be a great way to have a resell business.
4. Wedding Jewelry Sets
Traditional jewelry stores can mark up their items three or four times what the market value of what the metals might be. Some think a jewelry set should cost the buyer 3 months of income to purchase. Then, jewelry stores will offer financing and in the end charge way more than the already marked up price. Well when you go to a pawn shop, these stores are sitting on many gold and diamond sets that can be purposed for an engagement ring or set. Whether you want to buy a ring and use that exact piece, or mix and match to fit your partner's wants, you can do this for often times 50% off what a traditional jewelry store may cost. So if you know your partner wants a brilliant cut diamond, maybe you could purchase the diamond and gold band and then redesign the piece such as a new setting to make it especially special. This is a great way to get large diamonds for a fraction of the cost of a traditional jewelry store.
5. Tool Market
Many construction and handy workers have a wide range of jobs that require many different tools to be able to complete the job. Instead of purchasing new or renting an item that will in the long term provide no equity, you could look to a pawn store for these specialized tools. People in construction will go to a pawn shop and pawn their existing tools to buy the new tool needed to complete a job. Once the job is over, they will come back and redeem the pawn. What does this do? This means they are building to their collection of tools for the services they provide while at the same time getting discount items. This finance and purchase option is what makes the tool business a win win for both the pawn store and construction worker. Once you build a good relationship with a pawn dealer, you can start to get more discounts and be able to take less time to complete deals when you go in to the store.
These are just a few reasons why going to a pawn shop is great. Pawn businesses are one of the original bartering systems that are fun and can result in cost savings. Our advice, do your research online for items, and we think you will be amazed by the benefits of going to these stores. Thanks for the read, and if you are in the Little Rock area we would love you to stop by Pawnderosa Pawn Shop to see the great deals for yourself.