2007-01-23 09:01:07 · 8 answers · asked by bird 67 2 in Business & Finance ➔ Investing
Interest on the loan when the item is redeemed (the item is collateral for the loan). The difference between what was loaned and what is paid back is profit for the pawnbroker. If the item isn't redeemed by the date specifed in the contract, the pawnbroker is free to sell it for as much as he can get. So either way, they turn a profit.
2007-01-23 09:10:53 · answer #1 · answered by texasjewboy12 6 · 0⤊ 0⤋
They low ball people who b ring in stuff to pawn. They will only give a small percentage of the value. Many times, the person pawning something has every intention of claiming it within the two week or however long period - but normally cannot afford it. Then the pawnbrokers resell the items and make at least double on the items. Pawn brokers sometimes also offer payday loans- rip off.
2007-01-23 17:07:45 · answer #2 · answered by live75 3 · 0⤊ 0⤋
By purchasing items from people in desperate need of money they can force a price down. The sellers often have no choice or just want to get rid of the item.
They then sell it for good profit.
2007-01-23 17:06:24 · answer #3 · answered by aj_reel 3 · 0⤊ 0⤋
A pawnbroker will never pay you the actual value of the item that you are pawning. In fact, quite the opposite, if allowed. That being done, the pawnbroker then sells your item in his shop for a much higher price and that is how they get their money.
2007-01-23 17:10:57 · answer #4 · answered by teacupn 6 · 0⤊ 0⤋
most of the time they pay the person less but the main way they make money is by melting the gold down and getting new stuff made out of the gold that you pawn...
That is why they give you a limit of 30 or 60 days to get your stuff back if no one buys it as is! if you don't come back and buy it then they melt it!
it's a very smart process!
2007-01-23 17:05:22 · answer #5 · answered by Anonymous · 0⤊ 0⤋
By Blatantly Ripping Off People in Desperate Need
:-s
Its An outrage and should be Outlawed
2007-01-23 17:04:51 · answer #6 · answered by D B 4 · 0⤊ 0⤋
buy low sell high, If you pawn an item for 50.00 it costs 60 to get it out
2007-01-23 17:04:31 · answer #7 · answered by bayareart1 6 · 0⤊ 0⤋
They dont pay the person pawning their stuff nearly what its worth and then they charge more to the person buying it.
2007-01-23 17:03:49 · answer #8 · answered by sierraskyesmom 5 · 1⤊ 0⤋