Nearly 30 million Americans use collateral for a short term loan at pawn shops every year. Pawning is a great way to get your hands on some cash fast and provides flexibility for people who have poor credit.
If you’re in Ft. Lauderdale, Florida and are new to pawning, this helpful guide will fill you in on all the details.
How Do Pawn Shops Work?
How does a pawn shop work? This is one common question people who are new to pawning have. Fort Lauderdale pawn shops are businesses where you can sell your items for cash on the spot. They are also a place where you can get a small loan by placing collateral down.
To get your collateral back, you will need to pay back the loan with interest over time. When you pay back the agreed-upon amount and the interest the pawn shop gives you your collateral back.
If you are unable to pay the loan back, your item will be sold to cover the cost of your loan.
How Much Money Do Pawn Shops Give?
You may be wondering, “How much money do pawn shops in Fort Lauderdale give out in loans?” The answer depends on the item you use as collateral. The loan will be a percentage of the value of the item.
If the item you use as collateral is worth a lot you could get a pretty large loan. Some people pawn their boat, motorcycle, or vehicle to receive a large loan.
The percentage given out may differ depending on the pawn shops in Florida you visit. However, keep in mind you can always negotiate the amount of the loan.
Make sure you speak up if you think you can get a better deal at a different pawn shop. Pawn shops generally expect people to haggle with them on the amount.
Pawning an Item vs. Selling and Item
You can sell an item and pawn an item at a pawn shop. If you decide to pawn your item you are using it as collateral for a loan. The amount of the loan varies depending on the value of your collateral.
When you pawn an item you will need to pay back the loan by a specific date to get the item back. Selling an item at a pawn shop is a different process.
The pawn shop will appraise the value of the item and make you an offer for it. Pawn shops keep an ear to the ground for the latest prices and are pretty sharp. You can haggle with them on the amount but they will let you know if your perceived value is too high.
Keep in mind pawn shops also have to make a profit when they sell your item so they might give you a bit under market value for your item.
Pawning is a Great Way to Get a Quick Loan
Pawning dates back thousands of years and is used by millions of Americans today to secure a quick loan.
If you live in Fort Lauderdale Florida and are looking to have an item appraised contact High End Pawn today. We’ll let you know what your item is worth and tell you what kind of loan or payment we can offer you.