Well, pawn broking has been a part of human history from ancient times to the present day. A. L. Minkes (the great historian) penned in the journal ‘Economica’: “The beginning of pawn broking extends to the antiquity”. Unquestionably, pawn broking has been around for centuries. Typically, the pawnbroker or pawn store manages a massive variety of items including jewellery, electronics, musical instruments, tools and equipment, sporting gear, antique items and many more.
WHAT IS PAWNING?
Pawning or hocking mean that you hand over your valuable item to a pawnshop in exchange for a cash loan. This item can be an asset such as your gold jewellery, electronic items, garden equipment and tools, musical instruments etc. You can claim your asset back after making loan repayments within the specified time (which is usually 3 months) or you can extend the period to another month by paying off the interest for that month. However, if you fail to pay by the agreed timeline, a pawnshop will get the ownership of your item and will put your asset for resale.
Related: What Befalls When You Don’t Recover Your Pawned Item?
Buying or selling an item of value at a pawnshop is an art – if you’re looking to transact with a pawnshop, you must know this art well enough.
KNOW THE ART OF BUYING AT A PAWN SHOP
You can buy quality second-hand items from a pawn store for a fraction of cost and the below-mentioned tips will help you to do so with complete peace of mind:
Investigate: The original retail price of an item (when it was brand new) doesn’t count; however, some items retain their value. So make sure to research well to find out the current value of an item per its current condition. It’s imperative to know the value of an item in its existing condition prior to making a purchase.
Bargain: Every item for sale in a pawnshop will have a sticker price and you should consider this price as just the starting point. Before you begin your negotiations, you need to have a limit in your mind and understand that pawnbrokers have a lot of experience when it comes to negotiating. In addition, understand the fact that typically, when an item stays in the pawn store for longer, the pawnbroker will be more than willing to reduce the price.
Opt to Pay With Cash: When you’re paying with cash, the pawnshop will be more willing to complete your transaction, so they may also negotiate appropriately, close to the amount you may have imagined. Moreover, paying in cash will ensure that you end up paying only the amount asked for and don’t spend over the finalised set limit, which will shield you from accumulating pointless credit card debt.
Read the Terms & Conditions Policy: Some pawnbrokers provide warranties and some don’t! Some have lenient and clear-cut return policies whereas some say, “Sale is final and we don’t facilitate returns”. The policies can differ greatly, so it’s important to read the fine print carefully.
KNOW THE ART OF SELLING AT A PAWN SHOP
Pawnbrokers buy second hand goods to resell and the below-mentioned tips will help you to sell your quality second-hand item for a fitting price:
Pawn or Sell:
Identify whether you want to pawn or sell an item of value at a pawnshop – a pawnbroker will always ask you this question first. Therefore, you must be aware of the consequences of each option beforehand. Several factors need to be considered before taking the decision such as do you want your item back; if you choose to pawn, will you be able to repay the loan back in time and claim back the item etc.
PRESENT ITEMS IN THEIR BEST CONDITION
Would you buy an item that has accumulated dust all over? Nope! That’s why it is imperative to bring used items in their best working condition to get the optimal price for it. For instance, if an item is working on batteries, insert new batteries and ensure it works properly. If you can take the item in their original packaging, it will greatly help.
Bargain:
Know that pawnbrokers are resellers and so they won’t evaluate an item like collectors. For instance – a collector may value a vintage watch for $200 but you won’t get the same value from a pawnshop. Thus, it is important to set a minimum price well in advance so that it will help you to negotiate accordingly and refrain from taking a hasty decision, which you may regret later.
Pawn stores are easily accessible and convenient cash converters in Sydney who can provide you with fast cash when you pawn an item of value or sell a quality second-hand item of value at the pawn store.
SUMMING UP:
When buying an item of value from the pawn store, ensure to research for the item’s value, negotiate, and be clear with pawnshop’s policies and opt to pay in cash to ensure you don’t pay over the specified limit and thereby safeguard yourself from needless credit card debt.
If you choose to pawn an item to avail fast cash, ensure that you repay on a timely basis so that you can claim your item back.
If you want to sell an item to the pawn store, make sure you present the item in their optimal working condition, and in case of valuables like gold – have it evaluated by a skilled jeweller and request him to write down his valuation so that you can establish the item’s worth.
Read more about Should You Get a Pawn Loan or Sell Your Second-Hand Goods of Value
