Pawn shops offer several advantages to consumers. For starters, nearly every consumer in the United States gets excited to find extraordinary items at reduced prices. Moreover, what’s better than finding an option to get a quick loan without pulling a credit check or going through the red tape of traditional loans?
While there are several unique advantages to doing business at your local pawn shop, many people hesitate to take advantage of this opportunity because of the myths that surround the industry. The false interpretations of pawn shops affect their credibility and cost these reliable shops customer trust and business. However, pawn shops have significantly evolved over the years and made a comeback that turns more customers towards them than away. Still, myths continue to exist. Let’s discuss three myths about pawn shops.
Here are the most common myths customers hear about pawn shops:
One of the most common myths about pawn shops is that they sell stolen goods or illegal items. Many people feel ashamed of going into a pawn shop at all for this reason. Fortunately for customers, this is not true at all. Pawnbrokers do not accept or buy anything from a person who does not provide clear identification about the object they are selling. Why? The pawn shop will be held liable if they knowingly purchase stolen goods. Furthermore, it impacts their local reputation.
Most pawnbrokers go off their gut feeling and refuse to take anything they don’t feel is a legitimate buy. They perform proper inspections of each item that they are going to buy or keep. Most people don’t realize that pawnbrokers have a wealth of knowledge about the quality of various things, so they can’t be cheated as well.
Pawn shops must hold any purchased item for at least 30 days and register it in a national police database. If an item is later discovered as stolen, pawn shops will notify the authorities and fulfil all legal requirements to help rectify the situation. Moreover, pawnbrokers hold a license from the regulatory authorities and need to meet specific qualifications for purchase by law. They do not want to risk their credibility for a sale or purchase. So, if you’re looking to sell a stolen item at your local pawn shop, you better think again.
Another common myth is that pawnshops have higher interest rates. The first thing to consider here is that state regulations determine the interest rates that pawnshops apply. The interest rates are commonly between 5 % to 25%. Moreover, if you are paying higher interest rates up front, the terms of your loan are much shorter than a traditional loan. That means over time, a pawn loan is no more expensive in interest rates than a conventional loan.
Just like any other business, pawn shops are also there to make money. Of course, they do make a mark-up on the goods they sell. Still, they try to provide you the best prices for your purchased items. They evaluate the item according to its conditions and don’t want to cheat their customers. Because pawn shops work hard to build regular customers, they do not want to ruin their reputation with shady practices.
If you’re looking for a place to buy or sell at the most competitive prices, our Ontario pawn shop is the place to go. Contact us or swing by the shop to explore our inventory.