Finance

The pros and cons of pawn shops

Like anything else, there are good pawn shops and bad pawn shops and unfortunately, most people hear the term pawnshop and think negatively about them based on previous or preconceived notions that have been put in place.

While pawn shops have had a bad reputation for quite some time, those who have used them – know their value.

The pros of a pawnshop

Negotiating on price –

One of the biggest pros of a pawn shop is your ability to negotiate on the price of items. You usually cannot walk into a Walmart or Target and ask for discounts on prices at the checkout counter unless the store is advertising them.

Have items you can’t purchase elsewhere –

Remember those fun games you used to play as a kid or the first Nintendo that came out? Well, it’s not likely you’ll be able to find them at a local superstore or online, but a pawn shop may have it.

Pawnshops often have unique items from previous generations at a great price.

Discounted everyday tools –

One of the best ways to get tools for your house is at a pawn shop. Often times, purchasing a new toolset is very expensive or you only need one wrench to get the job done but you must purchase an entire set. Pawnshops will often have household tools for a great price and individually sold.

Offer financing –

Many pawn shops offer their own financing like the layaway program at K-Mart. See something you like, but don’t have the means to fund the purchase? Ask if the pawn shop offers financing and be sure you’re getting a good rate before you tack on the interest you’re going to accumulate.

The cons of pawn shops

Black market items –

One of the unfortunate items with purchasing from a pawn shop is the verification of authenticity. The last thing you want to do is purchase a ring or a bracelet and find out it was not authentic diamonds, but you purchased it like it was.

Same with handbags or clothes – be sure the brand is actually the brand and not a cheap knock-off.

Prices may not be realistic –

While most pawn shops are not guilty of price stripping, some may be. Be on the lookout if you ask for an appraisal and realize that your item is worth a lot more than the pawnshop is willing to give you.

Bad aroma –

Another con to purchasing from a pawn shop is not knowing if the piece you are purchasing came from bad karma. To ensure you start fresh, sage your items to clear any negative energies that may come with the piece.

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