by
Sarah Rodgers
|
October 4, 2024
Not all Pawnshops are the same, but they do have a lot of the same regulations and laws they have to live by. Now, this article isn't going to tell you how every pawnshop is friendly and honest and treats its customers right. But, that's because that's just like saying that every grocery store you walk into will have amazing customer service. It doesn't work like that. However, there are a lot of really honest amazing pawn shops out there that get a bad reputation because of the ones that didn't do a good job, and that's not fair. There are even times when scenes in movies make people think less of pawnshops, but I'm here to tell you the myths about the pawnshop industry and why you shouldn't listen to the rumors that are going around. So without further ado, here are the top 3 myths about pawn shops.
The pawnshop you go to doesn't determine the interest rate on a loan you got from the pawnshop. The state gets to decide how much pawn shops charge in interest rates. 5%-20% is about how high or low interest can get. So, this myth is wrong, you will not be paying a high interest rate, pawnshops' interest rates are actually very low. Remember, every state is different when it comes to interest, which is why it is always wise to check the state regulations for interest rates in a pawnshop. Keep in mind that pawn shops' goal isn't to make a sale, it’s to get people to come back. Ripping people off is an awful way to get people to come back, meaning you are not going to get ripped off.
You should also know that while you are making payments on your loan, the pawnshop will be taking care of your item to the best of their ability. You won't have to worry about your item getting lost or ruined. It is always comforting to know that your valuable item will be kept safe while you are away.
Another really common myth that almost everyone believes is that pawn shops sell stolen merchandise. Pawn shops take several precautions and work with the police to ensure they do not sell any stolen items. That's right, the police work with pawnshops. Now, that might be an eye-opener to most, but it's very common. If a pawnbroker has reason to suspect someone might be a criminal they can and will contact the police and get that person taken into custody while they figure everything out.
Now legally, the pawnbroker will have to take a couple of steps to make sure that they have enough evidence for the police to prove that the items getting sold were stolen. To do this, they require an I.D., a photo of the item, and photos of the person selling the item. That way if someone submits a report of a stolen item they will be able to trace it down to that pawnshop. With that being said, pawnshops are also not allowed to sell any items they buy until a waiting period of about two weeks to be sure the police have had time to see if it was stolen and sold for profit.
You have to understand that a pawnshop gets its profit by buying used items and selling them in their shop. They are not going to buy it at the exact price of the item's worth.
If they did that, they would be out of business. So what they do instead is they give you the best price possible but still at a price they can make a profit from. If, however, you do feel like you aren't getting a fair price for the item you are trying to sell at a pawn shop, you should know how to negotiate to get the price you want, whether you are buying or selling.
Just like any regular business, pawn shops have to have a good reputation in order to make money. Getting bad reviews and testimonials on Yelp or Google doesn't exactly make people want to come through the doors. Most pawn shops will do whatever they can to give you a price that works for you if you're polite and willing to work with them, especially if you are willing to give negotiating a try.
Pawn shops have a bad reputation for carrying old and used items. When in fact, pawn shops actually carry lots of new items as well as some older ones. Also, if a pawn shop does carry an older piece of equipment they will make sure it works before selling it to you, and when they do sell it to you they will not expect you to buy it at the full price.
Pawn shops shouldn't be your last resort. In fact, they can be your best first stop. These stores often carry almost every item you could need, and usually at a much cheaper price. Pawnshop owners typically aim to negotiate fair prices rather than ripping you off. They will work with you to find a price that suits your budget, making the whole process hassle-free.
Pawnshops are not what you think and aren't just for people with low credit scores or people in need of fast cash. Pawn Shops are used by lots of different people, rich or poor, pawn shops are for anyone and everyone.
While you are here if you are interested in selling used or new equipment for some fast cash or you want to check out our shelves, visit Xtreme Pawn Shop today. You can also get a quote over the phone to see what your valuable item is worth. You can call us at (801) 876-1379 or contact us online. We have pawn shops in West Jordan and Lindon.
