Pawn shops are an ideal way to generate income. You can sell or loan items of value to cover expenses. But what happens to your items after you pawn them? This article will tell you what you need to know.

Selling an Item

If you sell an item outright, the pawn shop will enter it into their inventory and offer it for sale. Items that sell find a home with another person.

It’s unclear what happens to items that don’t sell. They may get donated, or the pawn shop may dispose of them.

However, the pawn shop will never ask you to take your item back and return the money. Once a pawn shop buys an item, it is theirs to do with as they please.

Loaning and Item

Pawn shops also offer loan programs. People can come in with items of value in return for a loan. The pawn shop will assess the item and offer you a loan based on its value.

If you agree to the amount, you can leave with cash in hand. The pawn shop will hold your item until you repay the loan. Then they will return it.

If you cannot repay the loan, they will hold on to your item and attempt to sell it. However, the unpaid amount will never go into collections or damage your credit.

What if Something Happens to My Item While the Pawn Shop Has It?

Your item may get damaged or stolen while it’s in the pawn shop’s possession. Most pawn shops have insurance to cover these damages and will repay you for your lost or damaged item. Ensure a pawn shop has insurance before initiating the lending process.

What if the Pawn Shop Sells My Item?

In some instances, a pawn shop may get confused and sell an item they should be storing as collateral. The pawn shop is legally obligated to return your item to you or reimburse you for its value. If they fail to do so, you may take legal action.

Will the Pawn Shop Hold on to My Item if I Default on My Loan?

Say you miss a few payments and don’t have your loan paid off by the due date. You may still be able to get your item back.

Most pawn shops will hold on to an item for around 30 days before trying to sell it. They use this time to ensure the item is not stolen. It may take a month for them to get a police report back on the matter.

If, during these 30 days, you come up with the money and want your item back, the pawn shop may accept your payment. Interest rates may apply.

Cash Express Keeps Your Item Safe

Cash Express is a trusted local business. We will store your items safely ensuring they get back to you in one piece. In a worst-case scenario, our company is fully licensed and insured and can cover any damages that occur.

Contact us for great deals, affordable loans, and service with a smile.

If you have never been to a pawn shop, you may not know what to expect. Your experience will vary depending on whether you came to a pawn shop to buy, sell, or get a loan. This article will outline all three scenarios to prepare you for your first visit.

Know What the Pawn Shop Sells

First, you should understand that pawn shops may sell different items. Some pawn shops sell anything of value. Others specialize in tools, electronics, jewelry, designer watches, handbags, or a combination of these goods.

Research so you know what to inventory to expect before you visit the shop. That way, you increase your chances of finding the items you want and successfully selling or getting a loan for the items you’d like to part with.

As a Shopper

A pawn shop sells secondhand goods to the public. Don’t expect them to be in new condition. However, most pawn shops won’t purchase items that are in poor condition either.

Because items are used, they should be available at discount prices. However, that doesn’t mean every pawn shop prices items fairly.

If you have a specific item in mind that you want to purchase, you may want to do some research to determine what prices you can expect to pay. Consider the condition of the items when comparing prices. Used items should not be as expensive as new ones.

Pawn shops are always prepared for a little haggling, so don’t be shy about asking for a better price.

As a Seller

If you have a valuable item you no longer need, you may consider selling it at a pawn shop. Make sure the pawn shop carries similar stock to ensure a sale. Take steps to improve the item’s condition if possible so you can fetch a higher price.

You should also research to find out how much the item is worth before you take it to a pawn shop. This ensures you get a fair deal. If all goes well, you will leave with cash in hand.

As a Borrower

You can also use valuable items to get a pawn shop loan. Follow the steps that you would as a seller. However, there are some extra steps involved.

The money you get for your item is a loan that must be repaid. Once you repay the loan, you will get your item back. If you cannot repay the loan, the pawn shop will keep the item, but the unpaid amount won’t go into collections or impact your credit.

Choose the Best Pawn Shop for Your Needs

Before going into a pawn shop, you should research to find the best locations in your area. Choose a pawn shop that is known for its reasonable prices, fair deals, good loan rates, and excellent customer service.

Cash Express stands out as one of the best pawn shops in Philadelphia. We are backed by years of making customers happy.

Contact us when you are ready to buy, sell, or borrow.