Whether you are buying or selling, you need to prepare several things before deciding to head out to the nearest pawn shop in your area. Going to the shop unprepared can cost you more regrets than the amount of cash you take home.
No matter how badly you need to get a loan, you cannot just go to a shop and start selling your items. You also need to avoid going directly to a shop and start buying every available item on display.
We gather a few things that will help you prepare on your first transaction in a pawn shop:
Decide what you want to do
Before you even consider any shop, decide first what you really want to do. Are you planning to buy, sell or just pawn your items?
If you only plan to pawn your items, decide on the duration. When do you think will you be able to claim the item or pay off your loan?
What items are you planning to buy, pawn or sell?
Do your Research
The next step that you have to do is conduct a research. Once you have made up your mind on what you would like to do then start looking for pawnshops near your area.
You have to know that not all pawnshops accept the same type of collaterals, although almost all of them accept jewelries made of gold and silver. Some shops that will accept your house and lot, your car and other valuable items as a collateral.
You have to make sure that the item you will be selling or pawning will be accepted in your prospect shop. If you are trying to buy then check if the items you are looking for are available.
Know the Value of item and Learn to Haggle
As a rule of thumb, a business will try to maximize its profit but it does not mean that they should offer you much less than what your item is worth. You will not really know if the price you are getting is too high or too low if you do not know its actual value.
The best way to know the value of your item is to check its current market price. This will give you a rough estimate as to the specific amount you should be getting from it in case you decide to pawn it.
Present your Items in its Best Quality
When you are selling or pawning an item, make sure that it comes in great shape and quality. It will be best to clean or polish them before bringing them to a shop.
If you have them in their best possible quality then you have a higher chance of getting a higher rate compared to bringing them there uncleaned and unpolished. If you have to place them in a special jewelry box, then do so, especially if it means that it will increase its value.
Have all the Necessary Documents or Certification
Documentation may include valid identification card. Most pawnshops will require you to present valid identification card for security purposes. This will help them verify your details, and make sure that what you are selling or pawning them are not stolen items.
This will also protect you as their client because by the time you have to claim your items back, you can easily present a valid ID or the receipt of your transaction. Some items also require a certification or proof of ownership before the shop accepts it.
Understand the Terms and Conditions
Lastly, before signing anything and handing over your items, you must have sound understanding of what you are getting yourself into. Check the terms if they are agreeable to you.
How do you find the interest rate? How long can you have it pawned before the pawn shop claims it as its property? What are consequences of not being able to pay the interest on time?
Take the time to read the small prints on the document that you will be given before signing them. You have to understand these things; otherwise, you may regret the consequences of a rushed decision-making.
It is important to do your research to understand what you will be getting into. These tips are particularly handy for people who will be dealing with a pawn shop for the first time.
It is not just about taking your valuable items to the shop and walking away with some cash on your pocket. These are valuable items that you will be handing over to people you do not know.
Being a first time customer should not be that hard if you only know the things that you have to do. You just have to follow the above mentioned tips, and expect to have a smooth-sailing and successful first pawn shop transaction.