Pawnshops have had a bad reputation. There is a perception that Pawnbrokers are seedy individuals who are mostly dishonest. It would seem like there is no such thing as an honest Pawnbroker so, how can you make sure that when you need cash and are willing to pledge your valuables you do not get taken for a ride?
Pawn loan shops are great for many people who do not have good credit, even people who aren’t employed. Pawnshops are great when you need a small amount of cash at short notice. That’s all great but you need to know you are approaching a pawnshop that has a reputation for its honesty. That way you know you are getting the best deal you can get.
Whether you are pawning, selling or buying some valuable thing, here are a few tips you can follow:
- Identify the ideal pawn shops in your area
Compile a list of Pawnbrokers in your area that have been around for many years. A business that has been around for long, and survived changing economies has a business plan that works. It is also an indication that the pawnshop has a strong enough financial backing to be in a good position to offer you a great deal. A pawnshop like that will have a loyal customer base and a good reputation in the community it operates from. It makes looking for referrals easy.
- Check for Licenses
Pawn shops in Australia are required to follow strict laws. These laws may differ from state to state. Pawn shops are required to have operational licenses. Since most pawnbrokers buy and sell used goods, they may be required to have second-hand dealer licenses. So, a well-established Pawnshops will have a Pawnbroker license and a second-hand dealer’s license. Having these licenses can serve as confirmation that the Pawnbroker will have insurance that covers your valuables from theft or damage whilst in the pawnshop. An absence of the appropriate licenses could be proof that the pawnshop does not abide by the laws and might be prone to doing underhand deals.
- Understand how a reputable Pawnbroker works
There are three transactions that you can perform in a pawnshop:
- Pawn valuables for a short-term cash loan.
- Sell valuables.
- Buy quality second-hand goods.
Of the three transactions mentioned above, pawning is the primary transaction and source of income for Pawnshops. However, a Pawnbroker needs to be sure that he can sell the items should you fail to repay the loan an interest within the specified amount of time.
- Find Out what your items are really worth
Before you approach a Pawnbroker to pawn or sell, you might want to find out what the market value of your items is. You can take your items around different Pawnshops to get the average amount or go online to search similar items.
- Go through Customer Reviews
A reputable and established pawn shop will have lots of customers posting rave reviews online and on social media platforms. Reviews will give you a glimpse of the shop’s customer service and reputation. It will also give you a sense of which items sell the best.
The bottom line is that you should be prepared as much as possible. The more information you have, the better you It will be for you to find a Pawnbroker that will deal fairly and give you the best financial deal.
- Be prepared to walk out of your shop if you don’t feel comfortable with the offer or if the customer service leaves a lot to be desired.