I have never done this before! I am so embarrassed. I don’t know what to expect. Will I be taken advantage of?
If you share these feelings or have these questions, rest assured. We hear these concerns on a daily basis. Scottsdale Pawn Shop is working hard to change the mindset that some have towards our institution. As times change so has the pawn business.
An Overview of the Pawn Shop Business
Buying something at a pawn shop is simple; it’s just like shopping! If you’ve never pawned one of your own items at a pawn shop, however, you may have questions. Here are a few of the questions we get most often:
Why pawn something?
Great question. Some people think that pawning is just selling something to a pawn shop that, in turn, resells it for a mark up. In fact, that is a very small part of our business. A pawn shop is more often used to secure a short term loan without requiring excellent credit or the hassle many banks put you through. Because the pawn shop doesn’t do a credit check to see if you are able or likely to pay back the money loaned, they protect themselves by asking you to put up an item as collateral. This item must be equal in value to the amount loaned. The more valuable your collateral item is, the more money the pawn shop will lend you.
The money lent to you can be just what you need to get you out of a tough situation. When you have the money to repay the loan, you return to the pawn shop, pay off the loan, and get your item back. While your loan is in good standing, your item will never be sold without your approval.
How do you determine what my item is worth?
It is our job as pawn specialists to know what your items are worth. A pawn shop wants to be able to loan you as much money as you need, so we want to know the top value of your item. In most cases we will use a variety of closed auctions or draw from experience to determine the value that we can loan on the item. Once the loan amount has been agreed to by both parties, we will then prepare the pledge agreement.
Do I have a chance to buy my item back before you sell it?
We would always rather have you redeem your pawn loans or renew them rather than sell the item that you pledged as collateral. If you are current on your loan and within the time frame of the loan, your item will not be sold unless you instruct us to sell it.
I think all would agree that people have gone through such an emotionally and financially draining period over the last few years. What adds to the frustration is not having the means to climb out and move forward, to “see a light at the end of the tunnel.” We see that the banking institution isn’t helping as we would expect. So where do you go? When you come into Scottsdale Pawn Shop, you will often hear us say that we are the new banking or financial institution. By definition, bank stands for “an institution for receiving, lending, exchanging, and safeguarding money.” It doesn’t appear that they are doing much of that. Well, we will.
We are ready, willing, and able to loan on any and all items that we can find a value for and you will receive cash at that moment the transaction is complete.
Stop in to our high end pawn shop located in Scottsdale, Arizona today!
You can also check out this great video answering the question, How does pawning work?