Why you should be using the services of a pawn store
Pawn stores have had a torrid reputation with many people having the mistaken impression of the stores being dark, smoke filled and dealing in stolen goods. This is predominantly because of the media, TV shows and movies who have stereotyped pawns stores for the convenience of their scripts and storylines. Pawn stores do not however always fit this stereotype with many pawn stores offering customer centric, professional services on the major shopping streets and malls across the country. The pawn industry has also made major efforts to reverse this stereotype and have made changes to the look and feel of their operations and premises. Reputable, licensed pawn shops now feel like open-aired, bright, professional outlets that are both more inviting for customers and more comfortable for carrying out transactions, which can often involve large amounts of money.
The concept of pawn stores has existed for over two thousand years having started in the major trade areas of the Middle East and continuing through the dominant Roman times all the way through to medieval Europe to current times. Pawn stores are now heavily regulated by both federal and state legislation which put tight controls on the operational activities of pawn shops but also grants them rights on when they can sell pawned items if the pawn loan is not paid back the customer within a specific time period. Pawn loans are short term loans offered by pawn stores to customers who provide an item or items as collateral for the loan. In order to protect the pawn shop, the store is able to sell these items to recoup capital loan amounts if the customer does not pay back the total capital and interest amounts as per the loan agreement and a defined grace period. This is generally four months after the item was deposited as collateral at the pawn store. In order to ensure the integrity of the pawn industry, some states require that the pawn store supply relevant authorities with a list, buying price or loan amount and details of the item bought or provided as collateral to minimize the chances of stolen goods being transacted through pawn stores. This protection of both the pawn store and the customers rights, as is standard in any retail and financial industry, has resulted in pawns stores now having increased integrity and reputations making them attractive to potential customers wanting to take out pawn loans or sell relevant items that they currently own.
If you are new to the services of pawn stores and would like to investigate what your local pawn store has to offer then a visit to the store is always a good idea. They will be more than happy to chat with you, show you the display cabinets which will both give you an idea as to what items they would commonly accept to buy or use as collateral. You may even find an item on display that you would like to buy at that point in time. They will also discuss the pawn loan process to you and how that works.
In general though a pawn shop either buys goods in exchange for cash in the form of a check or offers pawn loans using collateral provided by the customer. Pawns loans are often significantly and better and have more advantages than bank and other financial institution loans. The process works by the customer providing an item of a certain value to the pawn store. Items typically accepted by pawn stores are items of jewelry, watches, sometimes valuable or in demand works of art and fine art and any other items to which a value can be provided based on market demands and well known collector markets. The pawn store will then value your items using their in-house expertise and knowledge. This expertise is certainly not to be dismissed as most pawn stores employ staff members with excellent understandings of a variety of markets as well as the latest skills and technology to value precious metals and gemstones. Once an item or collection of items has been valued and the value accepted by the customer, a pawn loan can then be offered to the value of the item or items. In the agreement an interest rate and payment term will be set for the loan. In general a pawn store will offer a short term loan of between thirty and ninety days. The customer will have to pay back the full capital amount and the associated interest payments within the time period set for the loan. Most often a repayment plan is defined with regular payments made on specific dates. Once the total repayments have bene made to the pawn store, the customer will then retrieve their items that were used as collateral. Some pawn stores will offer loan extensions beyond ninety days if the customer has paid the total interest of the loan back. Should the customer fail to pay back the capital amount and total interest charged, then the pawn store has a right to sell the item or items used as collateral in order to recoup the capital amount loaned to the customer. This can however only happen after the full loan term and a grace period for the customer to pay back the loan has passed.
The benefits of pawn loans over bank and financial institute loans are many. One of the more attractive benefits is that the loans are generally short term loans and collateral is used against the loan. The short term attribute of pawn loans means that the total interest payment will be less than the typical twelve month or longer loans offered by banks. Secondly, the fact that collateral is used to secure the loan, interests rates are typically lower than unsecured loans offered by banks and financial institutions. This means that the pawns tore takes lower risk when offering a loan and can thus lower their interest rates to more attractive levels. Thirdly, pawn loans can be made to anyone no matter what their credit scores and the taking out of loans will also not affect the credits scores of customers. Lastly, pawn store loans can be processed and a check handed over often on the same day as the customer visits. The loan process is very simple and efficient. These benefits of pawn store loans make them highly attractive to a number of customers and if you feel this is the ideal process and suits your circumstances, then pay a visit to your local pawn store.
Pawns stores also offer buying options to customers who do not want to take out a loan but are prepared to sell items that they do not want to own anymore. Pawn stores are prepared to buy a number of movable assets from jewelry through to unique motor bikes. They most often accept jewelry with precious metal and gemstone content which has determinable value. A pawn store will also accept items that tend to be collected as investments. These can include rare and vintage watches with specific brand names and art or fine art by well-known artists both historical and current. There is a huge market for collectable items that most of the public are unaware of but a good pawn store will be tapped into and have an excellent understanding of the value that collectors place on certain items. Many of us may have treated ourselves to a good watch ten or 20 years ago which is now in demand by collectors. We may have been passed down jewelry from our parents or grandparents which turns out to be a rare, vintage piece. These items can be checked for value at your pawn store and you can then make a decision to cash in on these inadvertent, or perhaps very deliberate, asset classes which have appreciated in value over the years you or your family have held onto them.
If you are reading this article then you are likely to be new to pawn store services and may be considering taking out a pawn store loan or selling some of your jewelry or watch to a pawn store for cash that you may need. There is nothing to fear from using a reputable, licensed pawn stores as they are highly professional and friendly businesses that welcome newcomers to experience the benefits that a pawn store offers. You are also protected by both federal and state laws in the same way that you are when buying groceries, clothing or electronics. The benefits of selling to a pawn store often outweigh trying to sell your items privately which can take time and you may be out-negotiated to values far below what the product is worth. Loans are quicker, easier and more cost effective than banks and financial institutions and they are open to anyone that is able to provide collateral against the loan. No matter what you need the cash for, whether it is upgrades to your house, a new car or cash for more secure or reliable assets, then the services of a pawn store may be the best option to get this cash.
Your local Pawn Store
Your local pawn store provides a number of money making, money borrowing and cost-effective purchasing options that can be hugely beneficial to most of us. Pawn stores have faced a rather unfortunate reputation with many people thinking that they are centers for the trade of stolen goods frequented more often by criminals and mobsters that the general public. This is a rather unfortunate reputation as it is generally not the case and more an image created by the media and entertainment industry looking for scapegoats for local crime and unimaginative blockbuster plots respectively. This has obviously had an effect on the public’s perception of pawns stores and your local pawn store has probably been negatively affected in terms of trade volumes that have gone through the store. In order to correct this image your local pawn store has probably recently been making some real efforts to correct this image and stereotype in order to attract more customers. Efforts they may have made have included a modernization and adaption to new retail trends for bricks and mortar stores, and investment in advertising and online presence and becoming more discerning in their pawn product choices towards higher end products and products that can be seen more as investments than cheap second hand goods. Your local pawn store is thus more likely to carry second hand designer products than used televisions and radios.
Federal and state governments have also played a role in improving the image and reputation of your local pawn store through wide ranging legislation that has been introduced to protect customers and to rid the few pawns stores that have been accidently or complicitly involved in the trade of stolen goods. Pawn stores now have to keep an inventory of all goods that move through a store and provide this to police on request. Your local pawn store will also have to be licensed by the state to operate and renew this license, often on an annual basis. Pawn stores in most states will also require Government Issue identification from customers before they are able to do business with you. What this all means is that your local pawn store will have to adhere to regulations that are common place in other retail industries and the financial industry. This is of significant benefit to consumers in that they are dealing with a legitimate business which is being forced to protect customer and consumer rights. Your pawn store has likely welcomed this legislation in that it has opened up pawn trade to a much bigger customer base.
If you have not used your local pawn store before then there are a few things you should know about what they offer. There are three services that they offer all of which a real alternatives to other retail outlets, second-hand selling tools and financial institutions. Possibly the most often used services of pawn stores are to sell your own goods to a pawn store in exchange for a money and to use your own goods as collateral for a pawn loan.
Selling your own items to a pawn store is a great way of making money. Many of us have items in our home that we no longer use or have collected over time that are probably worth quite a lot of money. We are not talking about televisions, radios or microwaves but about higher-end goods such as watches, jewelry, art or firearms. With the modernization of pawn stores, they have tended to focus on goods that have an investment value and are likely to mature in value with time. A lot of people buy jewelry with gold or diamond content or designer watches but after a few years these items tend to get forgotten in the safe or cabinets as they have gone on to buy more items through the years. These items probably still have value, particularly if they have precious metal or precious stone components. Instead of collecting dust in a safe or cabinet, why not sell these items to your local pawn store for additional cash that can then be used for a variety of other purposes.
If you have thought of items you currently own, that are no longer wanted, needed or used and they are discerning in nature, then it may be a good idea to have these items valued at your local pawn store. Pawn stores are experts in valuations with considerable experience in assessing and valuing a wide range of products and items. Many stores will have employed experts in geology to assess the most commonly traded goods in pawn stores, namely jewelry. They will be able to value gold containing jewelry using the karat weight of gold in the jewelry and the current gold price. They will do the same for platinum containing jewelry as well as be able to assess the cut, clarity and color of a diamond which, along with the karat weight of the diamond, are critical in determining the value of an item of jewelry with diamonds set into the piece. The advantages of selling your second hand items to a pawn store are that the valuations offered by the pawn store are market related and based on very specific factors that will be largely constant across the country. You are thus likely to get a buyers rate for your goods which will often beat the kind of price you will get when selling to other individuals online or through private sales.
A second popular service offered by pawn stores is pawn loans. This service is a great way to put your items to good financial use without giving up ownership of items that may have important sentimental value to you or you feel that they will grow further in value and can be sold at a later date. A pawn loan involves using an item or items of yours as collateral against a loan provided by the pawn store. The process involves the pawn store valuing your item or items and then providing you with a check for the valued amount. The pawn store will keep your items safe and insured until you have repaid the loan. The pawn store will include interest in the repayment terms and you will most often pay a fixed repayment amount over a period of one to three months. The advantage of a pawn loan is that interest rates are often more attractive than the interest rates provided by banks. This is because you have collateral securing the loan with a pawn store where as bank loans are more risky as they are unsecured. Regulations and laws are stringent with regards to pawn loans with most states capping the interest rate that can be charged and stipulating that all terms and conditions are clearly explained to the customer to ensure their protection and knowledge of the risk they are taking. Pawn loans are thus useful ways of borrowing money that are lower cost and more easily obtainable.
Lastly your pawn store will also have a range of second hand products for sale. Given the discerning nature of the goods that pawn stores are increasingly trading in, many of these items will have investment value. Just as you may have sold your jewelry or watches to your local pawn store, these items can also be bought. A lot of the items that can be found in a pawn store will have gold, platinum and precious stone content, which is always a good, low risk investment. You may have become an avid watch collector, which are now seen as a growing investment class. Given the nature of the products now being traded by most pawn stores, prices may not be cheap, but they are market value items with growth potential. If you are looking to invest in gold or watches or other investment items then a pawn store is convenient place to look for such items.
Your local pawn store is increasingly becoming an important service provider for alternative investment strategies and financial benefits. Despite the rapid development of online trading services which supposedly offer ease and convenience, a bricks and mortar store for buying and selling second hand goods is often the safer and quicker route for buying and selling goods. Your local pawn store will have fair and accurate valuations that provide a customer with the necessary information to make a choice as to whether to buy or sell items. A bricks and mortar store will offer buyers the opportunity to look at and examine products before buying and a buyer is going to know that they are good an assessed item that meets specific criteria. The risks associated with buying goods online that you have not seen or touched are mitigated when using a bricks and mortar pawn store. When selling items you will also walk out the pawn store with a check in hand making receipt shortening the selling process considerably when compared with other mechanisms for selling second hand goods. Pawn loans using collateral are also much quicker, easier and convenient than other loans ultimately making your pawn store a vitally important component of the money making and investment industries.