Before you even walk into a pawnshop, it’s a good idea to have a game plan. Do you plan on selling or pawning your item? To help you decide which is best for you, we at Imperial Pawnbrokers have compiled a list of when it is best to pawn or sell your item at a pawnshop.
What’s the Difference?
For those that aren’t familiar with pawning, it is a type of loan, where your item is used as collateral until you pay the loan back. Once the loan is paid, you will get your item back. Selling, on the other hand, is a one-time transaction. If you bring in an item of value, such as a tablet or a musical instrument, the pawnbroker can make you an offer. Since it’s a one-time transaction, the pawnshop keeps the item and you keep the money. We at Imperial Pawnbrokers near Yorba Linda have a couple of recommendations for you as you decide to either pawn or sell an item. Take a look!
Pawning Your Items
If you’re thinking about pawning, consider the following:
The pawnshop will determine the value of your item by using databases or even calling in an expert for guidance on pricing. Once the shop knows what the item is worth, they will determine the loan amount, which is a percentage of its value.
After the item is appraised, the pawnshop will create the terms of the loan. Typically, it will be the price plus a small percentage of interest and any storage fees. Most of these terms are regulated by local, state and federal government. Make sure that you completely understand these terms, especially noting how long you have to pay the loan back.
When you pawn an item, it is safely secured in the store. If you don’t repay the loan, the item will serve as payment, which means that your credit score is also safe and protected from any unpaid pawn loans. The only thing you lose is the item itself.
Selling Your Items:
Selling can be a great option, too. If you need money fast or are just looking to get rid of some items, selling to a pawnshop is a great alternative. There’s no risk and you can get the cash that you need in a timely manner. Also, compared to pawning an item, there’s no hassle to remember the terms, keep together paperwork or raise funds to pay back the loan, because it’s just a one-time transaction.
Ready to pawn or sell your next item? Contact Imperial Pawnbrokers today! We are able to pawn or purchase a variety of items, so be sure to visit our store for more details.