Do Pawn Shops really deserve that bad of a rap?
Cuz I gotta tell you, I'm not that against pawn shops these days. The whole thing seems fairly legit to me: Person A needs money fast. Person A goes to Pawn Shop with valuable stuff. Pawn Shop gives Person A money in return for valuable stuff. Person B comes in and buys goodies at a cheap cost. What's so bad about that?The fact that they have a bad rap makes it all the more interesting to me. This month's Kiplinger's Mag featured a story on a "Pawnbroker to The Stars" (April, page 88) and it really caught my attention. Not only is business booming, but celebrities and big ballers are using them more and more too! Here's one of my favorite clips from the interview, in response to the embarrassment factor:
"I think there is a stigma attached to going to a pawnbroker. But coming to us for a loan against your beautiful six-figure diamond is no different than getting a loan against your beautiful six-figure home. They're both tangible assets that you own and that you're leveraging to get cash."Yes, I agree! I'd like to think I'd have no problem visiting one if it really came down to it. But then again, my only experiences with them date back to when I was a kid oooh'ing and ahh'ing at all the fancy video games and electric guitars in the place. I've never actually purchased, nor sold, anything there - nonetheless taken out a loan. In all honesty I've just never needed money *that* bad. Sure I've borrowed and taken out loans for stuff like the first month's rent of an apt. or my college moped, but fortunately life has never demanded I come up with alternative methods.
But let's pretend it did. Why WOULDN'T I hit up a pawn shop? What's all the fuss about? I came up with a list of reasons why they seem so bad, and thus why most people probably steer clear. No science behind it, just me comin' up with my own thoughts on it:
- They look and feel scary.
- They're filled with smoke and scruffy men.
- The neon signs are reminiscent of Vegas sin-ness.
- You get less $ for your stuff.
- If you take out a loan it's probably at a crazy high %.
- You'll probably want to take a shower when you leave.
- You can get fast cash!
- You can take out a loan against some collateral.
- You can pick up some items at a bargain price!
- They track serial numbers to help cops catch thieves. (so if you're going to steal, which i'd punch you in the face for, don't sell the goods to the pawns! Fox news just did a story on it and they will catch you mr.)
So would I recommend using Pawn Shops? No. But that's not to say they could come in handy as a last resort. The truth of the matter is that some people DO need money at times, and they need it fast for whatever reason. I can certainly see their importance to society.
Labels: celebrity finance, fast cash, reviews
posted by J. Money at
11:27 AM
21 Comments:
Hi -
I actually found craftsman wrenches, screwdrivers, etc. at a pawn shop. They have a wonderful selection of tools - indeed, I could have been purchasing the very tools that I had stolen weeks before that I was attempting to replace. It's wonderful if you are a landlord and need vaccuums, TVs, tools, or construction stuff. I understand from a jeweler that you can find some great pieces at a pawn shop if you know what you are looking for.
I'm not going to lie, we though about taking some stuff to pawn shops after we tried to sell it on craigslist and no one wanted it. We never got around to it, though... pure laziness on my part. That's why we're planning a driveway sale (well, yard sale if our four-plex had a yard) for sometime next month!
Oh yeah... I love what you have to say here. Yes, they're scary; but you can use them in need, and they'll provide you quicker cash than any other alternative.
Just make sure you know the value of what you're selling. Don't get screwed.
I think they're much better options (generally speaking, anyway) than payday loan or quick cash places.
My friend got an awesome bike for cheap at a pawn shop- it's worth shopping at those places!
Great post -- a nice compare and contrast of pros and cons of pawn shops. Hehe... as for the Las Vegas comment... Las Vegas is so much more than just Sin City, but I know what you are getting at with the statement. Just couldn't help standing up for the classy aspects of my city.
Anyway, there are some way cool pawn shops in Las Vegas. I haven't purchased anything or done a loan exchange in them, but there are some amazing finds : ). It's fun to browse.
Well they tend to give you less than full value for your stuff, but that's what you get when you want cash fast. The pawnshop to the stars is pretty crazy, I saw a TV special on it once and some of the stuff they have is amazing - priceless artwork, expensive jewelry - definitely not your shady, smoke filled pawnshop down at the corner.
@Anonymous - oh man, i hope you didn't pick up the ones that were stolen ;) i hate when people rob others like that, so disrespectful. glad you got some cheap replacements though! Never thought about hitting 'em up for tools & such, good call.
@Jeff@StretchyDollar - that would also do the trick! if you lived in the DC area (wait, do you live around here?) i'd totally swing by and make a donation :) i cannot WAIT for yard sale season to begin.
@Trevor @ Financial Nut - Amen brotha. KNOWING what you're giving up in replace of the cash is def. key.
@Jane - I agree for sure. It's just cool knowing you have a worst case back up ;)
@Anonymous - NICE! bikes can get pretty expensive (esp. the motorcycle ones!). Glad he/she got the hook up.
@Jules @ Lovely Las Vegas - awww, you know i've got mad love for Vegas! it does suck it gets stereotyped though, so sorry to add to it ;) i think checking out pawns there would be even more exciting than the ones over here too - more cool stuff i bet closer into the main strip there.
@Miss M - I'd love to check out that celebrity place too - just to see some of that art and all - whew! i suppose i could do the same in a museum, but being in a place full of that stuff (some of which for sale) would be hot.
Just couldn't resist replying to some of the things you are a bit off the mark about. I am a 58 year old wife, mother, grandmother and pawnbroker. Believe me, all pawn stores are not filled with scruffy, smokey and scary men. The majority are independent, family owned for generations, small businesses. We serve a cross-section of the communities where we are located and many who are unbanked. We know when our customers have bad times and good times, births, sickness, deaths, lay-offs, and a variety of economic crises. We make small dollar, non-recourse pawns (national average is $80) that are secured by pledges of tangible personal property. Although approximately 75-80% of these items are redeemed by our customers, there is no penalty or adverse credit rating applied if they choose not to pick up the pawn.
But let me get back to the image Hollywood loves to portray of the pawn industry. My store is non-smoking, has carpet on the floor, recessed and track lighting, state of the art computers, video and audio security, we are insured by Lloyd's of London and so is our customer's merchandise, and no neon. My daughter grew up behind the counter here with my husband and I and our oldest grandchild will be working here this summer. Please get past the stereotypes and visit your neighborhood pawn store. You'll most likely get a good deal on something and have a great time as well.
I thank you for the primarily positive article and the enlightened comments of the others.
The pawn shops around Seattle are generally pretty well-lit. And I think as the economy continues to sag, I think these will be good places to go. While the pawn shops around here tend to overprice the items, you can generally talk them down once things have been around for awhile. I know a person who got a great deal on a bicycle just by offering what he felt was a more fair price.
J Money! I actually had to comment for the first time in defense of my favorite shopping location. I have been shopping at pawn shops since I was 15. I got my first laptop, a clamshell ibook at a pawnshop for an excellent price and negotiated a cash discount as well. And here in Vegas, pawn shops are actually the nicest I've seen on the west coast, blending into strip malls with Verizon stores and Trader Joe's.
One of the primary benefits that pawn shops have is the ability to utilize a precious item for collateral instead of having to sell it outright on a craigslist or ebay. While I have been accused of profiting off of people's misery by shopping there, I believe pawn shops due provide an important service, and it gives me the opportunity to see the merchandise before I buy it (as opposed to ebay). Besides, I always meet the most interesting, wonderful people, with the greatest stories.
It's not the buying and selling that gets the bad rap, it's the loans. Some of these places - not all, but some - are loan sharks, charging triple digit interest for a short-term loan. They're just as bad as those payday advance loans. The problem with these are, after the fees and interest, it gets people into a downward spiral where they have to keep borrowing to fill in the void from what they paid off.
I have no problem selling unwanted items to a pawnshop because I get a little cash and then someone else can buy it cheaply. I have no problem buying something from a pawnshop because I can usually get a good deal. But, that bit about leveraging your diamond ring for cash with a pawnshop being the same as leveraging your house with a bank is a load of bull. Banks don't charge the excessive fees and interest on home loans like some of those pawnshops do with their cash loans. The only similarity they share is that someone is using collateral to secure a loan.
I went into pawn shops about five years ago when dvds first started picking up momentum. I kept reading on-line reports of shops selling dirt cheap disks but all I ever found was jewelry (LOTS OF IT) and electronics. If I ever wanted to pimp on the cheap I'd swing by again.
I don't understand the stigma against pawn shops by people who frequent secondhand shops. Either way the stuff belonged to someone beforehand - how it left shouldn't affect you!
@Fran Bishop - That is awesome! I was really hoping someone who owned or worked @ one would holler to get a better scoop on things :) You def. know more about it than we do, so it's good to hear there are some pretty decent stores out there like yours. Unfortunately all the ones i've been to have been just like i described, so it's harder for me to have a better image until i see one that's more inviting - but I certainly believe you! And I think it's great that you know so much about your client's lives and can help them out when needed....that goes far in any business, so mad props to you. THANKS FOR SHARING :)
@Abigail - no doubt....i should have written more about getting good deals there too. it was more of an afterthought - but a big one! i wish there was a good one around here for me to check out.
@Mrs. Modern Tightwad - good job that is quite impressive! i'm really glad (and shocked even) that so many people love 'em :) i really thought i'd get a backlash here for not bashing them...
@Kristy @ Master Your Card - hmm....i wonder if there's someplace out there that shows the range of these rates? it would be interesting to see how Fran's rates compare to those sketchy ones out there cuz in all honesty I thought they were ALL sucky. Would be cool if i were proven wrong.
@Anny - yeah, all i remember is electronics and such too. you make a good point about second hand stores though - i guess it's the "atmosphere" of some of them that does it? although i know some loons that wouldn't touch ANY thrifty places at all. guess it's just one of those things.
I always mean to check out pawn shops when I'm on the hunt for something new (to me) but never quite get around to it. Your list of why you wouldn't hit a pawn shop is right on target with my mental picture. In my area, they're also in sketchy parts of town.
Maybe I'll give them a try next time I 'need' something new.
I used to work at a pawn shop and we always had equipment to try stuff out. My boss was always leary about letting some 13 year old try out and vintage Gibson but most they thime they should let you try it out first. I would not buy otherwise.
Hi there-we also have pawn shops and 'cash converters' over here in the UK. I've used them before, but the only thing with pawn shops is the interest is truly horrendous, so if you've borrowed a huge sum, then you may end up paying nearly double back! Ours were for littler items, but I would only use one again in a very dire emergency.
Well, J. Money, I see you are in the DC area and maybe aren't looking in all the right places;-). Go to National Pawnbrokers at 3100 Lee Hwy, Arlington, VA 703-522-1777. If Mary is there in the jewelry department, she'll really knows her stuff. BTW they also do jewelry repairs on premise. I was there about 2 years ago, and it is a very nice store in operation for 70 years.
We are regulated by the laws of the state in which we are located, as well as covered by various provisions of 13 federal statutes. I am in Alabama and we are audited annually by the State Banking Dept. Any and all charges are disclosed up front, in writing on the pawn ticket. Not scary nor smokey!!
can get an engagement or wedding ring a a pawnshop and later have it sized to fit. With the 50% divorce rate, is a wiser investment than spending a lot on a wedding ring from a jeweler. Get married at justice of peace and have reception at a free place like the beach or something cheap and casual too while at it and travel on honey moon on southwest and stay at an elderhostel as they are cheap or the Y! lol..
Pawn shops aren't that big here in Vancouver.
I know of a few stores down in the 'rough' part of town.
They seem to be synonymous with stolen goods, though.
This kind of keeps me away from them.
Scary?? Not in my area. they look, act and operate just like any chain store in mall does.
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