If things are a little tight on the financial side of things, pawning some of your stuff can be a great way to get some quick cash. Before you go bouncing off to your local pawn shop, check out this list to make sure you're well prepared for your first transaction.
Related Blog: What is the Difference Between Pawning and Selling?
Value vs. Worth.
Bear in mind that a pawn shop is a business, and like any other business, it needs to make a profit. Although your item may be worth a certain amount of money, the value that you're going to be able to obtain from the store will be less. Do your research and know how much your item is selling for online and in other stores, then set your expectations to less than that so you don't get sticker shock when the number you hear is less than the amount you've seen on shelves. As a guide, expecting about half of the item's worth is a decent rule of thumb to get you in a ballpark range.
Back to the idea of profits, you're not going to be able to retrieve your item for the same amount of money that you were paid for it. There are extra costs, such as taxes and interest, that will be tacked on to your initial principal. In Florida, pawn brokers are permitted to charge up to 25% per month for interest and service fees.
Defaulting on Payments.
The duration of your loan is something that you and the store will mutually agree upon. In Florida, you'll have up to sixty days to make payment in full, including principle, interest, and other fees, in order to retrieve your item. When you default on a payment, the shop becomes the owner of the item, which means it can sell your stuff at will.
Make sure you get everything in writing, and ask as many questions as necessary to make sure you understand your contract. Pay attention to the fees and due date in particular.
If you will not be able to pay off your loan by the due date, extensions are often a good option. Brokers are not required to grant extensions in Florida, however, asking about the extension policy up front is a good idea.
If you're looking for a pawn shop in Sarasota and Bradenton that you can truly trust, contact us or stop by and see us at America's Super Pawn at any of our 3 locations!