The history of Pawning
People have for a long had a similar problem, the lack of cash. When situations happen and demand fast cash, there has always solved pawn person items that are valuable. The pawnshops will then advance some money for a contracted period, 90 to 120 days, with interest. The pawnshop owner may sell your product at the point of your default on payment.
Three thousand years ago, the first pawn shops started operations in China to lend money to the poor at interest. In ancient Greece and Rome, pawnbrokers thrived by offering small loans to merchants to get their shops off the ground. The Catholic Church placed restrictions on the interest rate that pawnbrokers and pawnshops would charge, showing a decline in business.
In Europe, pawnshops were an essential method of financing, and the authorities relaxed the rules to enable the poor to get short-term financing. Prominent families such as the Medici for Italy and the Lombard family in the industry were well-known financiers in Europe. It is said that King Edward the III pawned off his jewels to the Lombard family in 1388 to finance the war against the French.
People require fast cash, and therefore, to prevent the Pawning of stolen items, in 1872, the Pawnbrokers act protected pawnbrokers who sold stolen items without their knowledge. The show also specifically stated the interest rate that was to be charged on articles and other guidelines to regulate the industry.
Pawnshops and modern times
The growth of EZ pawn shop has been on a steady rise because of the media attention they get. TV shows that show the operations in pawnshops have driven the interest in pawnshops for short-term loans compared to payday loans.
How to buy and sell safely in a pawnshop
Selling in a pawnshop
Find the right pawnbroker
The right pawnshop exists. The right pawnshop will deal with particular goods; for example, you right find a pawnshop that sells jewellery, clothing items or antique items. The best pawn shops will usually have a website where customers can rate and review the service they got. Once you feel comfortable with a certain pawnshop, you can proceed to the broker.
Decide to pawn or sell
When you pawn an item, you give the item to the broker for a loan paid with interest after the lapse of a period. Selling the item is transferring ownership of your item to the pawnshop. Before you visit a pawnshop, you need to look at certain factors, such as your ability to pay a loan over the period.
Remember that pawnbrokers are a reseller and not collectors of vintage items. Therefore, a pawn shop will give the lowest price possible to cater to their profit margin when they sell.
Prove your claim
Carry documents that will assist you in proving your claims, such as receipts and warranty certificates. For more expensive items, you need to give copies of ownership provided by the manufacturer.
Show your items at their best
Ensure you clean your items before pawning them. Put yourself in the buyer’s shoes who will buy the product and the state he would love to purchase it in.
Pay on time
Ensure you settle your loan plus interest in the agreed time. If you don’t, then ownership is transferred to the pawnshop.
Buying in a pawnshop
Select the pawnshop
Do your research on the pawnshops that deal with the items you are interested in buying. Ensure the products you are buying have the correct ownership documents. The study is to avoid buying stolen goods.
Negotiate a price that is friendly to you. The price stated by the pawnshop should be your starting point, as this will open the space for haggling for the price.
Read the contract
Read the sale agreement very well. Different pawnshops will have different policies on returns, and others will offer guarantees on the ownership of the goods.
The last step is to pay for the product that you have purchased.