4. It is perhaps perhaps not like that which you see on Pawn Stars
Rick Harrison from Pawn Stars examines an item of precious jewelry. | Ethan Miller/Getty Images
Pawn stores is probably not the dens of vice some think these are typically, but they’re also not exactly like that which you see on television shows, such as for example Pawn Stars. The mega-popular Channel that is history program pawn stores in to the limelight and helped normalize pawning, Birnholtz stated. The scenes the thing is that in the show, nevertheless, are not likely to relax and play call at town pawn store, which can be very likely to be stocked with gold jewelry, electronic devices, and gently utilized musical instruments than uncommon stone memorabilia or Star Wars collectibles.
Pawn Stars is “not always representative of exactly exactly how many people utilize pawn shops simply because they deal in actually, really specific things, ” Birnholtz said. “They’re a shop that is big most likely very good margins, to allow them to manage to pay serious money for many unique products. Whereas most pawn stores can’t do this. ”
5. Pawn offers vary — a lot
A pawnbroker and a client | PawnGuru
Every pawn shop would offer to loan you roughly the same amount of money for the same item in a perfect world. In fact, that’s maybe maybe maybe not how it functions. The typical distinction between the greatest and bid that is lowest for similar product at different pawn stores ended up being 258%, based on information collected by PawnGuru in 2015.
That vast disparity in loan provides ended up being one reason Birnholtz created PawnGuru. In place of investing a day visiting various pawn stores to obtain the deal that is best (or unknowingly settling for a low-ball offer), individuals is now able to look online, share the product they wish to pawn (or sell outright), and obtain quotes straight right right back from neighborhood pawn stores. “That provides individuals the ability to negotiate with numerous shops at the same time to find out what type is in fact likely to let them have the most effective deal, ” he said.
6. It is possible to pawn nearly anything
Interior of a pawn shop | PawnGuru
Weapons and silver could be a few of the more typical things individuals think about pawning if they require some dough, however in theory, it is possible to pawn most situations. You merely need certainly to locate a pawn store that thinks it might be in a position to offer your stuff. Various shops concentrate on several types of products, that is one reason to search around utilizing PawnGuru. Don’t assume all shop may be enthusiastic about exactly exactly what you’re offering or have the information to provide you with a price that is fair.
Although pawn shops have an interest in such a thing of value they are able to ultimately offer, some types of things do have a tendency to fare better than the others. “I would say that jewelry, musical instruments, and game systems — plus high-end electronics that aren’t phones — do well, whereas electronic add-ons and electronic devices that go obsolete actually fast don’t do therefore hot, ” Birnholtz stated.
7. You must know your item’s worth
Researching the worthiness associated with the product you intend to pawn can assist you see the most effective deal, but don’t expect you’ll be offered any such thing close to retail. | Joe Raedle/Getty Images
It helps to have an idea of what it’s worth before you attempt to pawn something. (and then we suggest just exactly what it is well worth, maybe maybe not its emotional value. ) You’re trying to pawn will give you a baseline to work from whether it’s researching how much similar items have sold for on eBay or taking your jewelry to an appraiser, knowing the value of what. Just don’t be prepared to get such a thing near to its real value that is retail. A pawn store has to make money so it will offer to loan you just a fraction of what it thinks it might be able to sell the item for later if you don’t return to claim your item.
“You’re planning to obtain a small bit less compared to exactly exactly exactly what it shut for on e-bay because in essence you’re paying for liquidity, ” Birnholtz said. “You’re having your cash today, you’re reducing hassle and that’s area of the advantage a pawn shop provides”
8. Pawn loans aren’t cheap
A pawn store in Pensacola, Florida | Spencer Platt/Getty Images
Pawn shops have actually some benefits over other “lenders of final resort, ” such as pay day loans, but that doesn’t suggest they’re cheap. Interest levels (that are typically state-regulated) can range between 30% to 300percent, based on Bankrate, plus some stores will tack on extra costs or solution fees. It will likely be cheaper than pawning if you have another way to borrow money, such as a credit card or personal loan. The drawback of more conventional financing is you may need decent credit to borrow. If you can’t pay back once again your loan, your credit history are affected.
9. Many people obtain things back
Guitars on display at a pawn shop | PawnGuru
Pawning a product doesn’t suggest kissing it goodbye forever. The concept is you’ll repay the money eventually you borrowed (plus interest and charges) then ensure you get your guitar or watch right straight back. And that is just what occurs more often than not. Eighty-five per cent of pawn store clients ultimately reclaim the product they pawned, based on the National Pawnbrokers Association. Compare that to pay day loans, where one-third of borrowers standard within 6 months of taking out fully their first loan, according to research by the Center for Responsible Lending.
10. Numerous pawn shop users are unemployed
Job seekers wait lined up at work fair. | Mario Tama/Getty Photos
A recently available PawnGuru study confirmed just just what many individuals probably assumed about pawn store users: a number that is significant unemployed or underemployed. Less than 50 % of pawn store customers had jobs that are full-time the study discovered. Younger and old pawn store users had been almost certainly to be away from work. Forty-seven per cent of men and women over 50 whom utilized pawn shops were unemployed, while 42% of these between 18 and 25 didn’t have task.
Exactly the same PawnGuru survey discovered individuals generally begin to use pawn stores at two points inside their life: either whenever they’re fairly young or whenever they’re in or retirement age that is nearing. A few of the older first-time pawn store users could be embracing pawning to supplement restricted or fixed incomes, PawnGuru speculated.
11. Numerous pawn store users experienced bad experiences with conventional banks
A woman walks past a Wells Fargo branch in Pasadena, Ca. | Frederic J Brown/AFP/Getty Images
Not just are numerous pawn store users out of work and likely searching for a good way to frighten up some money, but they’ve also had bad experiences with old-fashioned banking institutions that might be pressing them toward pawn shops.
“We realize that around three-quarters of our users either actually or have good friend or cherished one that has possessed a memorably negative experience with a bank. That’s 40% greater than the average that is national” Birnholtz said. For the PawnGuru users that do have bank reports (and numerous don’t), they’re twice as likely to own incurred overdraft costs or any other bank costs. That shows conventional banking institutions aren’t performing a good work of meeting the requirements of particular customers and that pawn shops are stepping in to fill the void, based on Birnholtz.