Pawnshops offer customers the opportunity to sell items or take out short-term loans using merchandise as collateral. These small businesses exchange items and payout loans that are low in value. Any profitable merchandise is accepted, though the most common items are small, high-quality products. Popular items include electronics, musical instruments, and jewelry. Some pawnshops accept larger, more valuable items like vehicles.
Table of Contents
How Transactions Work
Pawnshops accept valuable items as collateral against a short-term loan. A pawnbroker assesses the value of an item and offers a loan equivalent to a percentage of the value. Borrowers have a short period to repay the loan with interest and receive the item back once the loan is repaid. Failing to repay the loan in full on time results in the pawnbroker keeping the item and selling it for a profit. Pawnshops make large profits on forfeited items in addition to the interest earned on loans.
A great place to find a good price on a clean title or salvage title car is an online auto auction. Salvage auto auctions acquire repairable cars and rebuildable cars that have been deemed salvage titles by insurance companies. Salvage vehicles have experienced flood damage, fire damage, or car accidents. Depending on the damage, they can be repaired or used for auto parts.
Buyers can find a vast selection of used, pre-owned, and salvage cars for sale through dealer-only car auctions. Auto Auction Mall features thousands of vehicle types at wholesale prices. Buyers can run an advanced search for vans, trucks, cars, and motorcycles from popular brands like Chevrolet, Lexus, Nissan, Kia, Toyota, Volvo, and BMW. The salvage auto auction offers to finance U.S. buyers and international buyers can take advantage of shipping and transporting options.
Auto Pawn Loans
An auto pawn loan is a short-term loan that uses a borrower’s vehicle as collateral. Borrowers receive a loan amount based on the current market value of the car and leave their car with the pawnshop. Car pawn shops will accept any vehicle type that’s in good running condition and that has a decent appearance. The shop uses a valuation meter and inspects the vehicle to determine its value. An offer is then made based on the market value and the pawn shop’s financial limit. You’ll need to provide proof of income, proof of residence, and a lien-free car title to accept the loan offer.
Pawnshops are full of great stuff and unique items at affordable prices. Whether you want to purchase or need cash fast, it’s a good idea to patron a shop known for great quality and reliable customer service. Geauga Pawn and Alliance Loan Company have a wide range of merchandise featuring precious metals, jewelry, recreational items, electronics, and firearms. The premier pawn shop in Newbury, OH offers loan services for valuable items and performs an in-store appraisal to provide a cash offer. Whether you are looking for fair prices on great quality items, need to sell items for fast cash, or need a loan, a pawn shop can help you find exactly what you need.
Pros and Cons of Pawn Shop Loans
There are several advantages to taking out a pawn shop loan. Borrowers enjoy quick funding and can leave the shop with cash in hand within minutes. There’s no need to have any credit history to qualify for a loan, and failing to repay the loan won’t affect your credit score. Working directly with a pawnbroker means there’s no collection agency or creditors that will harass you to pay the loan. Failing to repay the loan amount results in the pawnbroker taking ownership of your collateral and selling it at a profit.
There are some disadvantages to keep in mind. These loans come with high financing fees and interest rates, making them far more expensive than a traditional personal loan. Pawnshop loans are small in value and typically last for 30 days. Failing to repay the loan in full by the due date or losing your pawn ticket can result in loss of collateral. Since these loans don’t rely on your credit, you won’t build your credit score by paying the loan off.