Thats pawn not the other kind. Just curious as one as opened in my town recently, wondered how they make money, can you buy your stuff back ? what time frame do you have. who uses them?
2006-10-16 03:41:41 · 10 answers · asked by Thornsey 4 in Society & Culture ➔ Community Service
you give them something valuable for money
2006-10-16 03:43:27 · answer #1 · answered by zanzabarr 2 · 0⤊ 5⤋
Let's say it's three days until payday and you are out of money, but you have a valuable watch on your wrist...Take it in and the pawn shop will look it over, figure if they can sell it, then offer you a price. That's how much they'll loan you. You come back in within the loan period, which varies but can be weeks or a couple months, and you can re-claim your watch for the loan amount plus a fee. If you don't re-claim your watch before the end of the loan period, they put it up for sale. If you want it back, you'll have to pay the sale price.
Who uses them? Well, just about anyone in need of money right away. Probably young people, maybe some older people now and then. Some people use the pawn shop like a bank--get some money for a watch or stereo or guitar, then pay back the loan plus the interest charge. A pawn shop is like a bank for small loans (at high interest) with collateral (whatever you pawn).
They make money, I'd guess, from the interest charges and from selling stuff that people fail to claim. Usually, you can get something like a TV for a better price than if you bought one brand new. So they probably make at least some of their money this way.
2006-10-16 03:52:44 · answer #2 · answered by dakong 1 · 0⤊ 1⤋
Basically pawn shops prey on the poor and those who, for whatever reason, are unable to get credit by conventional means.
You take something valuable to them, they value it and give you a proportion of the value in cash as a secured loan. When you want it back you pay more - it works out at a ridiculously high rate of interest and, if you don't pay it back within a fairly short space of time, you lose the item altogether.
There are some very unscrupulous shops in England called Cash Converters. They are to be avoided like the plague, either as a borrower or a shopper. As a borrower you are going to get ripped off, and as a buyer you are going to get what was the property of some poor soul who fell on hard times.
2006-10-16 03:50:09 · answer #3 · answered by Essex Ron 5 · 2⤊ 1⤋
you take Ur jewellery in they weigh it and give u a price that they are willing to pay for it which isn't anything compared to what its worth. You have 6 months to pay it back interest goes up every two months. i put in 9ct belcher necklace 9ct locket six 9ct rings all i got was £77.which is nowhere near what its worth in 6 months i have to pay pack £109.34 its good if you need a bit of money before you get paid then pay it back that week i had to pay £87 back cos i got it the following week. pawn shops are quite good for buying jewellery you sometimes get a bargain. I only pawn my jewellery if i am well and truly skint and cant borrow it from anyone else. A LAST RESORT and NO i am not a drug addict or a thief just sometimes over spend a bit if i see a bargain or i go out at the weekend
2006-10-16 04:01:38 · answer #4 · answered by Anonymous · 2⤊ 1⤋
well a skint person (or a drug addict) will take in an item, lets use a telly for instance, the shop then offers the person a price for his telly, say £50. the skint person then has the oportunity of buying that product back, the shop will usually keep the item for a month, however the skint person will have to pay interest so the total by back will be around £65 the shop makes £15 profit. However if the skint person doesnt come back for the item or cant buy it back within a given period then the shop will sell the item onto someone else probably for around £80 so then they have made £30 profit and thats the name of the game.
2006-10-16 03:48:20 · answer #5 · answered by Jo. 5 · 3⤊ 2⤋
They advance you money on an object of value that you have, you have then a certain amount of time to recover your item at a higher rate, if you do not recover ( re buy ) your item then the pawn shop can sell it to make its profit.
2006-10-16 07:19:55 · answer #6 · answered by ? 6 · 0⤊ 1⤋
You go in, they offer you a really low price then sell it for 3 times what it's worh. Simple really ent it? Incidentally the traditional sign for a pawnbroker is three balls and these three balls represent the odds on you going into the shop. 2 to 1 you don't go in. True that.
2006-10-16 03:46:03 · answer #7 · answered by Anonymous · 1⤊ 0⤋
You need dosh,take in something worth a few pounds they, offer you half of what it`s worth, you pay them back under their terms within a certain time frame if you don`t you lose the item,OK?
2006-10-16 03:59:39 · answer #8 · answered by edison 5 · 0⤊ 1⤋
They rip you off. If your going though hard time and they prey on that to make money.
Also crooks can steal stuck and sell it to the pawn shop for a quick buck.
2006-10-16 03:46:27 · answer #9 · answered by Anonymous · 0⤊ 2⤋
They pay to take your stuff on a kind of loan basis, and if you want to buy your stuff back, they charge you interest on top.
2006-10-16 03:44:32 · answer #10 · answered by scragette2000 5 · 0⤊ 1⤋