A pawn shop is where you can pawn an item in exchange for a short-term loan. You can pay on a monthly or weekly basis to extend your payback, and as long as you make payments, you have the potential to buy the item back. It’s a way to get money for something valuable without actually selling it.
Everyone knows that you can go to the pawn shop to make some quick money, but this is not the only reason why you might go there. With that in mind and without further ado, here are the top five benefits of visiting pawn shops that might have never crossed your mind.
No complex procedure
Pawn shops don’t care about your credit score. These are “secured loans” you get by offering an item you own as collateral. However, they are less formal, and there’s no complex procedure/paperwork to drag the process on.
It’s also important to mention that while the conditions may seem unfavorable when you compare them to payday loans, they’re not that bad. Take into consideration that payday loans have an APR of 300-400%, and you’ll see exactly what kind of deficit you’re facing.
The reason why many people dislike the idea of going to the pawn shop is that they immediately assume that you’re pawning an heirloom or an item that you’re sentimental about. This is not necessarily the case (in fact, it’s usually not the case). It’s just an elegant solution to a common problem.
Pawn shops have an incredibly diverse inventory. Here, you can find anything from electronics and jewelry to incredible art pieces. The thing is that it has items from all over the globe. Different styles and eras are there for you to explore without visiting multiple stores. It is not unreasonable to assume that pawn jewelry in Phoenix may have a more compelling offer than a nearby jewelry store.
If you need several different items simultaneously (which is not hard to imagine), a jewelry store can replace multiple trips with a single one. For instance, instead of buying a TV in one spot and a necklace in the other, you can find them both in a pawn shop.
Also, the procedure of making a purchase in a pawn shop is fairly simple. It takes a few minutes to find what you’re looking for and purchase. Even for valuable items, there’s not much paperwork. You go there, you make a purchase, and you come back home with your item. That’s it.
Getting an appraisal on your items
Sometimes you want to get an item appraised to know exactly how much it’s worth. You may not want to pawn it right away, but if you suspect that will be the case in the future, you can go there ahead of time. The reason why this is a good idea is that you’re not desperate, and experienced salespeople can sense desperation.
Keep in mind that when selling or pawning an item, you want to shop around. The first priority that you have is to determine the approximate value of the item so that you know if the offer is fair. Sure, you may remember how much you paid for it originally, but just because you were willing to pay that sum doesn’t mean that you can sell it for anywhere close to that.
The reason why pawnshops are so great for these appraisals is that the procedure is not long. You don’t have to schedule a meeting or wait for hours before they come out with an offer/estimate. For just getting an idea or shopping around, you can’t do much better.
The element of surprise
You never know what items you’ll encounter in a pawn shop. The offer is dynamic, and there are new items on a regular basis. This means that even if you don’t plan on buying anything, you could just visit your local pawn shop and inquire about their offer. Here, you can find something you like and make an impulse purchase to be proud of.
While sticking to your shopping list is great budgeting-wise, you also want to use an opportunity for a great purchase. For instance, you may not need a TV at the moment, but what if you encounter one that’s just 50% of the cost? You refuse to buy it, and two weeks later, your current TV breaks down. In this scenario, you would rue the day in which you let that opportunity slide.
Lastly, there’s something exciting about the intention to buy something new without knowing what it is. This is one of the main reasons why loot boxes are so popular in modern video games.
When buying at pawn shops, you’re getting items at a fraction of the cost at the retail store. Remember that while the pawn shop may not have the exact item that you’re looking for, they might have something similar. The saving you’ll make is worth making a compromise.
Also, there are probably quite a few retail stores in your general area. This means that if you can’t find what you’re looking for at the first pawn shop, you can just go to the next one. In general, shopping around is always a great idea.
The biggest problem with this is that offers have an expiry date. This means that if you see an opportunity, you should take advantage of it. They don’t have a steady supply that you can dip into at any point.
In the end, pawn shops exist all over the globe. There are pawn shops in all civilizations and societies, which only serve the point that they are socially beneficial. Still, just because there are pawn shops, this doesn’t mean you are using them for what they were made for. By understanding these benefits, you’ll be able to profit from them and use them wiser in the future.