Melbourne Pawnbrokers can give you the option to sell your valuables or use them as collateral for a loan. Deciding to pawn or sell a valuable item can be tough to figure out. Under which circumstances should you sell your valuables or pawn them?
Pawn shops are in the business of giving cash loans against valuables. For Melbourne Pawnbrokers, business is good if the majority of the items that are pawned are redeemed. Having to sell items because the lender defaulted is not ideal. When you sell items, the Pawnbroker will evaluate your valuable item, make an offer, pay you in cash. The Pawnbroker can immediately put the items for sale.
Pawning is different in that you receive a cash loan for your valuable items but the item is kept in storage. You will have to sign a contract that you agree to the amount loaned, the interest charged, the payment periods and any other terms and conditions of the contract.
The process of pawning or selling valuables to Pawnshops
When dealing with Pawnshops, the process is quite simple. You present your items and you let the pawnbroker know how much you are hoping to get for them. The Pawnbroker might ask you how much you paid for it in the beginning, not because he wants to set the price as close to the actual retail price but to find out if you yourself know what the retail value of your item is.
The pawnbroker will inspect your item and do all the necessary tests. The pawnbroker will get to a price and offer you a loan based on what he worked out the price to be whilst factoring things like storage and security costs as well as the profit he wants to make.
You will be given a contract to sign or a pawn ticket that will state the loan amount, interest and repayment period. The pawnbroker will keep your items and resell them to recoup the loaned amount and make some profit.
Should I Pawn or Sell?
When you have to decide between pawning and selling you have to ask yourself if you still need the item or not. Then you have to find out what would get you the most cash, if you are thinking of getting rid of unwanted goods but you need cash choosing whether to pawn or sell will depend on a number of factors. For the most part, if you are in a situation where you need a lot of cash, selling your items to a pawnshop is easily the quickest and it may get you the most cash. When you see your items outright, the pawnbroker is free to sell your items as quickly as possible. When you use your valuable items as collateral, they will be stored safely until the loan period lapses. It is only when the customer fails to service the loan that their items make their way into display cases to be sold. If the loan is re-paid with interest and the terms of the loan agreement haven been fully satisfied then your valuable items will be returned to you.
