Most pawn shops offer immediate loans to people who have very limited options when it comes to getting money fast. Yet, there are some facts that you might not know about pawn shops that can interest you. So, before you go to pawn shop like Premier Pawn, here are some things you should know.
Pawn shops are not cheap
Although these establishments offer quick loans, it does come with a price. There are pawn shop loans that have at least 300% annual percentage rates, depending on the state’s usury law.
You can still get your item back after 30 days
Although it varies from shop to shop, most pawn shops generally hold onto the items within 30 days before they sell them. But there are a few cases where pawn shops still offer a grace period after 30 days if their customers fail to pay back the loan on time.
Your loan will not be near the item’s original value
Expect that you will not be getting a loan that will be the same market value of the item. There are even a few cases where borrowers will be lucky enough to get 25% of the item’s current retail price. But you can always work your way around through proper negotiation. You can get a better loan rate if you try to negotiate with the pawn shop. But if you still could not agree on anything, then selling it might be a better option for you.
Understand the product you are pawning
While you will not get the same retail price for your item, you still need to know its real market value. By understanding the worth of your item, you can be sure that you will get the best deal possible since you will know what you are bargaining for. Also, make sure that whatever product you are pawning is in good condition. Inspect your product and see if you have each piece. Check also for cracks, scratches, stains and other possible damage, as these can decrease the value of your item. If you want to attract a higher amount of cash and receive maximum value for your item, make sure it looks worthy. You can even have your product appraised by a professional to help you in bargaining.
Know the power of negotiation
You have to understand that pawn shops work as resellers and not as collectors. This means that they also have to consider many factors before agreeing to buy your item. These factors include the condition of the item and how long you have kept it in storage. So, set a minimum price in your mind already to make the decision-making process easier for you. Moreover, do not hesitate to walk away if you feel you are being ripped off and being offered an unreasonably low payment. Set a limit. Although pawn shops are a great solution to get quick and easy loans, it is still advisable to look for other options. You can also check on a few pawn shops in your area to get the best deals and better loan rates as well. Doing so will give you better chances of getting the highest loan rate for your item.