2007-03-09 10:33:10 · 9 answers · asked by Anonymous in Entertainment & Music ➔ Polls & Surveys
the pawnshops give you a loan on merchandise. they charge you a specified amount of interest on the money which the merchandise is used for collateral to secure the loan. you can pay the interest only if you see you can't pay the loan off in the specified amount of time to keep the merchandise from being sold. the pawnshop actually aren't interested in you not getting your merchandise back as they are stuck with it until they are able to sell it.
2007-03-09 10:47:58 · answer #1 · answered by Marvin R 7 · 0⤊ 0⤋
Pawnshops know, the people selling thier things are either a) hard up for money or b) don't want their things anymore. Pawn shops take advantage of this and buy things for pennies to a dollar.
Then, when they sell them in the store, mark up the prices.
Ex. I bought stereo speaker for my home for $100. The pawn shop bought the speaker from someone for $25. Thus, a profit of $75
2007-03-09 18:38:47 · answer #2 · answered by j s 4 · 0⤊ 0⤋
it's exactly the same as how banks lend u money and charge u interest with a collatoral. The difference is, banks will sell off your collatoral and recover the shortfall from u while pawnshop would have already discounted the value of the items that u pawn to cover part of their losses, then auction off the item if u can't redeem it back.
2007-03-10 04:49:22 · answer #3 · answered by firefly 5 · 0⤊ 0⤋
lets see you take in an item worth $100 and they only give you $50. You take the $50 because you need the money, then they turn around and sell it for $150 and bam $100 profit
2007-03-09 18:37:34 · answer #4 · answered by Alfredo T 2 · 0⤊ 0⤋
Well they buy stuff from you (lets just say a 500 $ ring) they pay you 30 bucks for it, and if you cant get it back then they sell it for 500 bucks.
2007-03-09 18:37:43 · answer #5 · answered by Charisma 6 · 1⤊ 0⤋
When people can't afford to get their stuff, the pawn shop sells it for a lot more than they loaned for it....
2007-03-09 18:36:16 · answer #6 · answered by Fred Phaggins 6 · 0⤊ 0⤋
by charging 20% interest monthly on the unpaid balance of the loan.
2007-03-09 18:37:12 · answer #7 · answered by Anonymous · 1⤊ 0⤋
well you sell your stuff to them, then buy it back at a more expensive rate, or if you can't buy it back someone else does
2007-03-09 18:36:15 · answer #8 · answered by snow_da_man 4 · 0⤊ 0⤋
rip people off
2007-03-09 18:35:47 · answer #9 · answered by Anonymous · 1⤊ 0⤋