In case, a need arises suddenly whereby you need some instant cash to deal with your current situation or pay up your current bills, you may be going to a second hand dealer/ pawn broker for some quick cash. Due to the uncertain economy, numerous people are now visiting a second hand dealer/ pawn broker for the first time in their lives.
You needn’t worry when availing a loan from a pawnbroker, but yes, there are certain things you should know before you walk into a pawn shop.
Pawn shops aren’t unethical
Mainstream media has spread negative information about the pawn shops that’s not true and due to this many people take it for granted that pawn shops are a wrong place to visit when in urgent need of some instant cash.
Remember, licensed pawnbrokers in Sydney are strictly governed by state and national laws. A large number of pawn shops/second hand dealerships are absolutely clean and well maintained shops that are operated by people who take great pride in offering an excellent customer service.
Getting a loan from the pawn broker
A typical pawn broker operates as follows:
You take something of value such as your gold ornaments or electronic items or any other second hand items (in good and working condition), and if the pawn broker is interested in your second hand goods of value, they may offer you a loan amount against that item which they will keep as a security/collateral. Often the loan amount given is just a fraction of the item’s original value (in case of second hand goods), but usually more loan amount for gold – though, it may be less than the current market value.
Pawn shop may even buy your second hand goods provided by you, if it’s in good condition and working.
When you take loan for your collateral, you will obtain a pawn ticket/ receipt from them. Keep this securely, as it contains details regarding loan availed by you, charges, maturity date, small description about your item etc. You will need this to get back your collateral when you repay your loan amount.
Getting Your Item Back
You may repay your loan amount with the charges – usually the period range from 1 month to 3 months; however, the term can be extended, but you will have to pay additional charges/ fees and you have to get the extension from the pawn broker well before the expiry of the term.
In case, you fail to repay the loan amount within the predetermined date, you may lose the possession of your second hand item that you have deposited as collateral with the pawn broker.
Important Facts about Pawn Broker/ Second Hand Dealer
A pawn broker or pawn shop is governed by state and national laws. They are secure and clean place to obtain loan amount against your collateral.
Interest rates/charges may vary depending upon the loan amount availed and the term fixed for repayment.