A pawnbroker can be a good place to get a few extra euros to help pay a bill, buy a gift, or put some fuel in the car. This article will explain what happens in a pawnshop and how it works, so you know what to expect.
Steps
Step 1. Decide the item you want to pledge and the amount of money you want to get
Tools, electronics, weapons and jewelry are all common elements. They need to be in good condition, safe and functional, otherwise you can't get much money, or even nothing. If you don't repay the loan (or "pledge") for an item, the pawnbroker will put it up for sale to try to make more money than it lent you. This is one way he makes money. The dealer can't sell broken or non-functioning items, so it's not worth lending you money for them. For that same reason, they can't even give you what the item is really worth, because if they were to sell it, they wouldn't make any money.
Step 2. Take the item to the pawnshop and decide if you want to sell it, or "get a loan by pledging it"
You can also call the pawnbroker first to find out if they are possibly interested in looking into it. Sometimes, if a pawnbroker already has many items similar to the one you want to pledge, they may not be interested in taking it. This can happen with bulky tools, because they may not have the space to hold more. If possible, clean the item so it appears in good condition and make sure you can prove it works. If the item runs on petrol, make sure it has some. If it needs batteries, make sure they are charged.
Step 3. When asked, explain to the pawnbroker how much money you want for the item
You should be blunt and confident, but also kind and reasonable. "I would like to get at least € 45". Or "I need as close as possible to € 50". Much better than saying "give me 50 euros or I'll go!" or "Oh, I don't know, tell me what you think it's worth." It usually helps to ask for a little more than you really want, because sometimes they make a counter offer, just like when buying a car. Remember that you will have to pay interest on the loan, and these are much higher than the bank's!) (This is another pawnbroker's way to make a profit, the interest paid on the loan.) If you don't repay the loan, the dealer will have to sell the item to get the money back.
Step 4. When you have agreed on the price, fill out the paperwork and collect your money
Paperwork for a pledged loan or to sell something will require valid identification and you will need to put your personal identification on the back of the receipt. This is for security reasons, to help find the stolen items that have been pledged. You are now well on your way to getting some extra cash!
Step 5. Return to the agreed deadline to repay the loan, plus interest, and to get your item back
Typically you will have one to three months to repay the loan or to renew it. (This may vary from state to state, the employee will let you know how much time you have). If you are unable to repay the full amount, you can only pay the interest and "renew" the loan for another period of time. At the end of this period you pay off the loan and get your item back or renew it again. Most pawnshops do not allow you to renew the loan indefinitely, at some point it is necessary to pay completely or lose ownership of the object. The usual period for this is around 3 months. Just remember that if you pay interest and renew, when you come back after another month, there will be more interest to pay. If you do this too many times, it will take a considerable amount of extra money to get your item back. It is worth trying to get the item back as soon as possible!
Advice
- There are some exercises called "securities pawnbrokers". In these exercises you can pledge the title of your car. You accept the price, they give you the money, and you give them title to your car. If you don't pay the loan, they'll come and get your car. This is a very risky thing, because you could lose your car for a few hundred euros if you don't pay.
- To negotiate, try to tell him immediately what you intend to buy, if that is the only thing you intend to buy.
- It is always good to take all the accessories of the object to the pawnshop. Things like a battery charger for a cell phone, a memory card for a camera, or a power cord for a television will make this easier.
- After you have pledged some things and repaid the loans on time, the pawnbroker will be able to trust you more and be willing to give you more money for any other items in the future.
- At the end of the game, the owners of the pawnbroker try to carry out a profitable business.
- Your item must be in perfect and safe working condition to get money. Put this in your head, if you would not buy the item in a shop, why would the pawnbroker risk his money? In fact, he'll have to sell later to get his money back if you don't pay back the loan. With electronic items such as tablets, cameras, laptops, cd players, etc. you will be asked to turn them on and prove they are working properly.
- Pawnshops have pretty much stopped taking TVs that aren't flat screen and HD-Ready. The same goes for VCRs, VHS cassettes, etc. They are now quite outdated and not worth much - which makes them harder to sell and useless as collateral. Similarly, however, objects such as tablets, video games, laptops, etc. they will be worth much more if they are the latest models, HD, etc.
Warnings
- Make sure you can repay the loan later and get your item back. For example, if you bring a very nice item, you may be able to get a bigger figure! But it is better to be able to repay this amount, more interest and ancillary costs at the agreed deadline, otherwise you will lose this item! You can always pledge this item, however ask for much less than the amount they would be willing to give you, especially if you need a smaller amount.
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Make absolutely sure that the item you intend to pledge has not been stolen!
The pawnshop is required to work closely with the local police. This must record the serial numbers of everything that has been pledged. When an item has been reported stolen, if the owner has the serial number, it will be entered into a stolen item database. Then if someone tries to pledge it, the police are able to compare the serial number of the stolen item and return it to its rightful owner. They can and could sue you! Even if you didn't steal it, but someone else did, you are the one who tried to pledge it, as a result they will come looking for you!
