Monday, January 20 2020
Should I Pawn or Sell My Items?
When you’re looking for some fast cash, a pawn shop like Cash Express should be at the front of your mind. At pawn shops, you can quickly sell your items for cash or pawn them for a loan.
But you might be wondering: which one is better? Should you pawn your items for a loan, or sell them outright?
The answer depends on a few factors.
Before we get to which avenue works best for you, let’s distinguish pawning from selling.
What is Pawning?
Pawning is the act of taking out a loan from a pawn shop using one of your possessions as collateral. The pawnbroker evaluates your item and extends you a loan based on what they determine to be the item’s worth.
The pawnbroker then holds onto your item until you pay back the loan principal plus interest and fees. If you don’t pay the loan back, the pawnbroker takes possession of your item.
What is Selling?
Selling at a pawn shop is simpler. You bring in your item, then negotiate with the pawnbroker until you agree on a price. Once you hand off the item to the pawnbroker, you get your cash and have no further obligations to the shop.
Pawning vs. Selling
Consider the following factors when you’re deciding between pawning and selling your item.
Does the item you plan on using to get cash hold sentimental value? For example, is it a family heirloom? You’d want to pawn it so you can get it back.
If the item isn’t something of sentimental value, say an old computer, then selling it would make more sense.
Item’s Potential to Gain Value
You should also consider if the item you’re using for cash will increase in value. For example, let’s say you have a nice watch with no sentimental value to you, but it might increase in value in the future.
In this case, pawning is the better option. You can use the watch several times to get loans when you need them; plus, as the item becomes more valuable, your loan potential increases.
But again, if the item is something that won’t be worth much in the future (such as old electronics), selling it will maximize the cash you earn.
Will Pawning or Selling Get You More Money?
Pawning an item gets you more money. See, pawn loans are less risky to pawnbrokers because they have a chance of getting their money back plus additional interest and fees.
In other words, there’s less of a chance that the pawnbroker will have to find a buyer for your item.
Once again, this makes pawning a better method for your more valuable items (watches, jewelry), as you’ll get quite a lot of cash.
But if you’re looking more to declutter your home and get some quick cash, selling would be the better route.
Whether you need an easy loan or some quick cash, Cash Express wants your items! Bring your items into our shop and we’ll get you the cash you need fast.