There are many ways to sell goods these days. Some small business owners lease shop space to sell merchandise, while other sellers have taken to the internet. But have you heard of pawning? Pawning is similar to selling, but they are not the same thing. You would have to visit a pawn shop and see the process in action to fully understand how it all works, but we’ll walk you through some of the basics below. So, what is the difference between selling items and getting pawn loans in Norwich, CT? Read on to find out!
When you sell an item, you won’t be getting it back. You, the seller, are letting it go to a buyer in exchange for money. An easy way to understand it is that selling has no strings attached, unless there’s a warranty attached to the item. Someone who is selling goods in a new or used shop, at a fair booth or online has asking prices for items. Once money is exchanged and an item is sold, the ownership rights to that item are no longer the seller’s. It’s now the customer’s item, and they can do with it whatever it is they want to.
Another way to look at selling is that it’s usually a permanent transaction, which is fine because you’re likely only selling things you never intended to keep. Let’s say you accidentally sold something you meant to keep. When it comes to selling, the only way to get an item back is to offer to buy it back from the customer—and they’re not likely to agree to do so.
Pawning an item
When you walk into a pawn shop, you are there to either buy, sell or pawn items. If you want to pawn something, here’s what you need to know:
- Pawning is basically a loan on collateral: A pawnbroker agrees to take your item, then loans you money. The most common valuables that get pawned include jewelry, power tools, electronics, antiques and musical instruments. Sometimes a broker will accept a variety of collectibles, or even vehicles.
- Pawning an item is not selling it: Pawning means you are borrowing money against the item, and the amount you’ll get for it won’t be market value—the pawn loan is typically for way less.
- Pawn loans have time limits: You generally have between 60 and 90 days to repay the loan, including interest and fees, and get your item back. During that time period, the pawn shop holds onto your item. Shops may extend your loan period, but more interest and storage fees will apply. Pay the loan in full to get your item back from the pawnbroker.
- Leave it or reclaim it: If you don’t pay the loan back in time or you never come back to reclaim your item, you forfeit it. The pawnbroker now legally owns your item and can sell it in their shop for any price they want, and to whomever is interested.
Are you interested in pawning a valuable? Contact AZ Pawn & Guns today to learn more about pawn loans in Norwich, CT!
Categorised in: Pawn Loans
This post was written by Writer