Table of Contents
What is the average interest rate at a pawn shop?
12% to 240%
Alternatives to a pawn shop loan
| Loan type | Average interest rate | Time to fund |
|---|---|---|
| Pawn shop loan | 12% to 240% (can be higher depending on the pawn shop) | Same day |
| Payday loan | 300% to 500% APR (can be higher depending on the lender) | Same day |
| Personal loan | Varies | Typically less than 5 business days |
| * With Credible’s partner lenders |
How do pawn shops determine prices?
How do you determine the value of the item? Pawn shops base the value of the item on current appraised value, its current condition and the ability to sell the item. Pawnbrokers use research tools that they have at their disposal to determine an item’s value and get you the most money for the item.
What are pawn shops paying the most for?
Jewelry and gold is always a go-to item that pawnshops nearly always buy. Depending on what you own, you may get $100, $1,000 or more for your jewelry, coins, gemstones or scrap metal or silver. A gun, some power tools, a lawn mower or a quality stereo or laptop computer in working condition may bring $100 or more.
Do you get more if you sell or pawn?
Decide if you’re pawning or selling. Often, you can get more money for your item by selling it. However, with a pawn loan, you can get the money you need, and you still get to keep your item. The pawnbroker may offer you more or less than what you’re asking for your item.
Do pawn shops make good money?
Pawnshops make money by providing personal loans, reselling retail items, and offering auxiliary services, such as money transfers or cellphone activation. Pawnshops typically aim to generate overall net profit margins of at least 15% to 25%.
How much do pawn shops mark up items?
Popular items in short supply that sell quickly can have a higher markup. Like all businesses, pawnshops need to turn a profit. According to the Hustle, the profit margin target for large pawnshop chains is about 38 percent, while small businesses sometimes charge around 50 perecent.
How do you negotiate at a pawn shop?
The Dos and Don’ts of Pawnshop Negotiating
- DO: ASK FOR A BETTER PRICE EVERY SINGLE TIME.
- DON’T: MAKE AN EXTREMELY LOW-BALL OFFER.
- DO: BE FRIENDLY TO THE PAWNBROKERS.
- DON’T: POINT OUT FLAWS IN THE ITEM YOU’RE TRYING TO BUY.
- DO: BE INFORMED.
- DON’T: HAVE OUTRAGEOUS EXPECTATIONS.
How much money can you get from a pawn shop?
Loan amounts vary according to the item’s value. There is a $10 minimum amount on a pawn transaction, but the maximum amount may be set by state pawn laws. Your loan amount will be determined according to other factors as well, such as product demand and condition of the item.
What’s the interest rate on a pawnshop loan?
You’ll pay very high interest rates at a pawnshop: up to 25% per month. On a $200 loan, that would be $50 per month, compared to the current average credit card rate, which at press time was about 15% annually, or $30 per year on every $200 borrowed. On the plus side, pawning will not put red flags on your credit record — even if you default.
What happens when you give an item to a pawn?
While your item is in pawn, you still own it. It is our responsibility to keep it safe and in good condition while it’s in our care. When you give us an item for a pawn, we keep all accessories (remote controls, cables, etc.) with your item and place it in a secure area.
Can a cell phone be sold in a pawn shop?
Cell phones are frequently stolen, and it is usually too risky for a pawn shop to sell them. However, there are exceptions to these rules, so check with your local pawn shop to learn exactly what items they accept.