A lot of people wonder whether it’s better for them to pawn their item or sell it to their local Los Angeles pawn shop. This answer can depend on a lot of factors. If you have never been to a pawn shop before it’s best to understand how they work and what your results may be.
When you take an item to a pawn to ‘pawn’ it you are taking out a loan using your item as a collateral. The pawnbroker will give you a certain amount of cash depending on what they deems to be the value of your item. They will then hold your item until you have paid back your loan plus interest and any applicable fees. If you decide that you do no wish to pay back the loan you own the pawnbroker will keep your item and can sell it to regain the loan fees that were given to you.
When you sell you item at a local pawn shop you are just bringing it into a pawn to make a sale. You and the broker can then come to an agreement on how much they broker will pay you. You can then leave with cash in hand, same day with no need to pay back a loan or worry about interest and fees.
If you are considering whether or not you want to see or pawn an item you have to think about whether that item is one for which you mind parting ways. Some people take family heirlooms and other expensive valuable into a pawn shop when they are tight on cash and need a little boost of insta cash flow. However, when it comes to family heirlooms you have to be careful and entirely certain that you can pay back the loan. Which your heirloom might get you a bit more than another item you wouldn’t want to lose it if you aren’t able to repay the loan on time and in full.
A further things to think on is the value of your item. If you are taking in a piece of gold jewelry for a loan you should keep in mind that it’s collateral value may increase while it is in the hands of a pawnbroker. If you choose to pawn your gold you will be thankful to know that down the road, when you have paid your loan, you item has not only retained its value but possible grown in value. One last benefit to pawning versus selling is that you may get more cash. The loan is less of a rusk for a pawnbroker because they won’t be worried about reselling the item.
If you are looking to work with a reputable shop that is insured and bonded look no further than Diamond Jewelry & Loan. We are long standing Los Angeles pawn shop that has been serving the people of LA since 1948. If you have items you wish to sell for a quick cash profit or need to get a loan on collateral, think of us.