Only 39% of people who run into unforeseen expenses would have $1,000 in savings to foot the bill.
That means anything from home repairs to medical bills could put millions of people in a very precarious situation.
For most, the solution to getting the money that they need is to take out some form of a personal loan from the bank. If you don’t have the credit or the time to do that though, you may be left scratching your head.
Fortunately, pawnshops are here to help. As a matter of fact, over 7% of Americans turn to pawnshops in times of financial need.
At a pawn shop, you can pawn or sell your items to get cash fast.
But which option is better? Pawning or selling?
In this article, our team breaks down all of Fort Lauderdale’s pawn vs sell questions.
Pawning is the activity for which pawn shops earn their name. When you pawn an item, you give it to your local pawn shop for safe keeping. Based on the value of that item, the shop will then loan you an amount of money.
In a lot of ways, pawning items is similar to getting a collateral backed loan from the bank.
If you pay back your loan, you’ll retain ownership of your item. If you don’t, the pawn shop keeps the item and your debt is forgiven.
The Pros Of Pawning Items
To get a better idea of whether or not pawning is the best option for your unique situation, here are some of the advantages you’ll enjoy when you pawn vs sell.
Pawning is Temporary
When you pawn something, you’re not getting rid of it. You’re simply borrowing against its value.
That means if you’re in a tight pinch for cash and all you have is a family heirloom for loan collateral, you can confidently give it up knowing that it will come back to you if you meet your obligations.
Pawning Is Like a No Credit Check Loan
One of the biggest reasons why people love pawning merchandise is that it gets them the money they need without regard to their credit.
In today’s economic climate where regulations are tighter than ever on banks, it can be hard for sub-prime customers to get any kind of loan.
Pawn shops don’t care about your credit. All they care about is the value of the item you’re offering up.
Pawning Get You Money Fast
Loans at banks can take weeks to go through. At a pawn shop, they’ll put cash in your pocket immediately.
The Cons Of Pawning Items
Below are a few pawning drawbacks Fort Lauderdale pawn shop customers should be aware of.
Pawning Comes With Interest
As with all loans, you can pay back what you owe on a predetermined schedule. That schedule, however, will accrue interest.
Ultimately, you’ll end up paying back a little more than you borrow.
You Run the Risk of Losing Your Item
If you fall on hard times and can’t pay back your loan, your pawnshop will take possession of your property. This can cause a lot of stress if the item you pawned is of significance to you.
Now to explore the other half of our pawn vs sell conversation–selling!
Many people are surprised that pawn shops even buy items outright. The truth is though that thousands of people sell items to their local pawnshop on an annual basis.
Offers on the items you’re looking to sell get made by pawnshop employees based on their perception of your item’s valuation. Depending on the item, you may have some wiggle room to negotiate your offer and if an agreement is reached, you’ll be paid in cash, immediately.
The Pros Of Selling Items
Selling items comes with some advantages that pawning doesn’t. Here are a few of them.
You’ll Walk Out of the Pawnshop With More Money
When you pawn something, you receive a fraction of that item’s value as a loan. When you sell something, you will walk out with the full value of your item immediately.
That can mean hundreds more in your pocket!
You Don’t Have to Manage Your Item Anymore
The process of dropping an item off at a pawn shop, scraping together money and picking it back up can be a cumbersome one.
When you sell something, your business with a pawn shop can conclude on the spot. No need to worry about making payments or reclaiming your property.
The Cons of Selling Items
When you sell items, you’re relinquishing ownership of it. That reality carries with it a few considerations worth keeping in mind.
You Can’t Reclaim Your Property
Once your item is sold, it’s sold. The only way you’ll be able to get it back is to buy it back if your pawn shop lists it for sale.
The sale price of your item will almost certainly be more than what you sold it for.
You’ll Have Less Property to Pawn in the Future
If ever you need to borrow money again, you won’t be able to borrow against the item you sold. Make sure that you have other collateral around your home that could be worth pawning prior to selling your only means of getting loans in the future.
Wrapping Up Pawn vs Sell: Which is The Best Option
As you can see, there’s no right or wrong answer when it comes to pawn vs sell. Ultimately, you’ll need to assess what your wants and needs are to determine which option is best for you.
Whether you’re looking to pawn, sell or buy in Fort Lauderdale, the place you want to go is National Pawn & Jewelry.
Our team of pawn experts have been servicing the Fort Lauderdale area for over 60 years. Let us provide you with the same outstanding service that so many of our customers love.
Shop our online inventory or visit our store today!