Pawn Shop Haggling and Dealing
Pawn Shop Picture
Walking Out Of A Pawn Shop With The Most Money
There are two ways to gain money from a Pawn Shop. This first way is to straight up sell something that you don't want anymore. For example, You got a new flat screen television and you want to sell your old one.
The second way to gain money from a Pawn Shop is to pawn it. When you pawn something, you are exchanging your object, jewelry, or whatever for cash. You typically have 30 days to pay the cash plus the interest to get your property back or you can just pay the interest. Just paying the interest means that it will stay in the Pawn Shop another month. Every 30 days interest is added onto your property until you can pay to get it out.
Before I can teach you how to get the most money from dealing with a Pawn Shop I will have to elaborate on how a pawn transaction works to make sure you understand it.
Lets say there is a Pawn Shop down the road called "Ariakan's Pawn Shop." On March 1st, 2012, I walk into Ariakan's Pawn Shop one day because I need to borrow at least $150 and all I have is my Playstation 3 video game system. Upon getting to a Pawnbroker who is at the counter he informs me that the most money I can get for pawn is $100, and so I try to haggle him/her up as close as I can get to $150 but I have no luck. I need the money so bad I take the $100. I have no intention on letting the Pawn Shop keep my Playstation 3. I just want to borrow some money and when I get paid I will go and get it back. That is a pawn.(This is not a sell. When you sell, you can't get it back.) The interest rate on a pawn differs from Pawn Shop to Pawn Shop and state to state, but at Ariakan's Pawn Shop, the interest on a $100 is $20. From the time I pawned the Playstation 3 until the next 30 days, if I go and get the Playstation 3, it will cost me $120 because they gave me $100 and the interest is $20. I can keep my Playstation 3 in the Pawn Shop for 5 years if I wanted to but I have to pay the $20 every month or I could potentially lose it. Once you neglect to pay your interest and your late interest charges, the Pawn Shop keeps it as theirs and resells it to an ordinary customer.
Obviously the interest rate is determined by the amount the Pawn Shop lends to its customers. The interest on a $5 item might be $1 a month and the interest on a $1,000 diamond ring might be $265, and so on...
Some people don't want to worry about paying the interest back. In these cases they sometimes just sell it straight-out and walk away from the Pawn Shop with the money that they got. In other situations people who pawn something they want back change their mind and decide to just let the Pawn Shop keep it. The Pawn Shop still has to wait a certain amount of days meaning after the interest payment periods are over until they can legally resell it since it started out as a pawn.
Before I can teach you how to beat the Pawn Broker at his own game, I need to teach you the psychology behind a Pawn Broker. Brokers want to buy your property for as cheap as possible!!!! They want to be able to resell it and make a 50% to 70% profit if possible. A good example is a laptop computer which sells for $600 to $800 brand new in most average cases. If you bring in a laptop computer that you bought for $600 then the Pawn Broker knows that he needs to be able to sell it for $450 because if they try to sell it any higher than that, the customers will just say to themselves, "I'm better off going to get a brand new one than buying this used computer for this much." Brokers want to prevent this. They want to sell at a competitive price and so they try to buy the computer from you cheap as possible. In this case, if I am a Broker I will try to buy your computer for $150 at the most.
Here is a dirty little secret. Pawn Shops make most of their money off the interest. They don't survive on reselling used stuff. A Pawn Brokers job is to try to make it look like they want to buy it. They will tell you that you get more money for selling and not pawning. If you tell a Pawn Broker that you are just in a bind right now and that you just need some money and that you plan on coming back for it, then their Pawn Shop mentality sinks in. The more money a Pawn Broker lends to someone the more interest they will make on the pawn!! Brokers at Pawn Shop will lend you the most money possible if they believe you will come back for it.
A Pawn Broker once asked me how much money am I trying to come up with if I sold him my computer. I told him I don't want to sell it. I just want to pawn it. The Broker then asked how much money am I trying to come up with. I tell him $300. At this point the Brokers wants to believe that I will come back for my computer but just tries to make sure that if he did lend me the money that I would not just run away with it and forget about my computer and paying the interest. Next, the Broker tells me that the most money they'll give me is $140 for my computer and that is if I sell it. I told the Pawn Broker just like this, "I don't want to sell it. I need to come get this back. My mother gave it to me for my birthday. It has sentimental value. Can you at least give me $140 on pawn to?", I asked. The Broker knows at this point that there is a 90% chance based on my actions and words that I will come back for it on a pawn. With that in mind he wants to lend the maximum amount of cash possible but still be able to resell it and make a little profit in case I abandon it and really don't come back for it. After all this evaluation, the Broker looks at me and says, "Okay I guess I could lend you $350 on this computer. It is a nice one." "Wow! I only asked for $300, but $350 sounds nicer, I said." At this point, I am satisfied and walk out of the Pawn Shop with my money and the pawn ticket they give you whenever you pawn something. The Pawn Broker is happy to. He is convinced that I will leave the computer in for at least 3 or 4 months and pay those months interest plus the $350 face amount to get my property back. Had the Broker only loaned me $150 then the Pawn Shop would have made minimal profit compared to the interest they'll make off the $350 loan.
The moral of this story: When you really need to have the most amount of money possible, tell the Pawn Broker that you don't care if he/she gives you a Million dollars for selling it!! State that you want it back and unless you get a sufficient amount then you will try some other place. Be nice and respectful. Trying to be rude won't get you anywhere in a Pawn Shop. If you follow these steps, the Broker will lend you the maximum amount of cash possible and after you get the money and leave, then you really don't have to go back for it. Just keep the money and stay away. Thousands of people go into Pawn Shops everyday and pawn things without the intention of every going to get it back. They are just trying to get the most amount of money possible. Anytime you want to sell something or if the Broker thinks there is a big chance that you want come back for it on a pawn then this will reduce the amount of money they will give you.
The biggest profit right now in any Pawn Shop is gold, gold, and gold. Don't ever go into a Pawn Shop and tell them that you want to sell your scrap, used, or broken gold. Gold is gold, and it is high right now.
The thing with gold right now is, gold is so high that on a sell or a pawn, customers will often leave with a good bit of money. Obviously if you pawn your gold and they think you will come back for it, they will be willing to give you more money. Gold is the only thing right now that commands 3 or 4 different quotes. Don't pawn or sell to the first Pawn Shop you see!!! Call your local Pawn Shops in advance and ask them how much per gram they pay for 10k, 14k, 18k, and so on. Some Pawn Shops will lend you $16 a gram in 10k and $22 in 14k gold. If they offer you less than $12 a gram on 10k gold and less than $14 a gram in 14k gold, then you are getting ripped off.
With that said, the average herringbone for example weighs 16.3 grams. If that is 14k gold, then you should make at least $300 even if you tell the Pawn Broker you want to sell it. Even if they buy it from you for $400, they will still make a profit. Gold is high now!! Most Pawn Shops though will try to dazzle you with $200 in this situation though and have you feeling that you are making a huge sum of money.
I hope this article has helped your understanding out. If you have any questions then please let me know and I will answer them for you.
Wow!! When I created this blog, I didn't expect to get so many hits!!! Because people are using my guide to make decisions I feel like I need to give you an update about gold!!
Because of Obama's failed policies he has killed our dollar. Our dollar is now almost completely worthless. The good news is GOLD has shot up because of it. Take everything I said in this article back when I created it in March and double it almost!!(In regards to Gold only!!) You now can get a whole lot more money from gold when you take it in Pawn Shops.