2007-03-12 08:16:33 · 7 answers · asked by ara2680 2 in Business & Finance ➔ Personal Finance
They pay very low prices for things they buy.. they also prey on the poor. they know that 90% of the time those that pawn items will not show up in time to claim their items. they then sell them at a profit. They are pigs. I have never pawned anything because they are basically dishonest.
2007-03-12 08:20:41 · answer #1 · answered by oneblondepilgrim 6 · 2⤊ 0⤋
They make high interest loans to people who leave items as collateral. If the loans are not paid off by some predetermined date they keep the collateral and sell it.
So if I walk in with my $300 trumpet they might loan me $250 and charge me 20% interest and if I don't pay it off in a year they own the trumpet. Either way they win.
Some of the answerers portray the pawnbrokers as crooked or whatever but nobody is holding a gun to the borrowers' heads. It's easy to say that the rent-to-own places and the payday advance places and layaway plans and so on are ripping people off but dealing with people who are broke is risky and if there wasn't a high premium for doing business with them nobody would.
2007-03-12 21:26:09 · answer #2 · answered by frugernity 6 · 0⤊ 0⤋
Simple. Pawnbrokers loan pennies on the dollar in the hope that you will not come back and redeem your stuff. They then turn around and sell it at a reasonable price putting the difference in their pockets.
2007-03-12 15:23:12 · answer #3 · answered by ? 7 · 1⤊ 0⤋
Ever seen their interest rates? They are in the thousands! They buy low and sell high like any other store.
2007-03-12 15:40:23 · answer #4 · answered by Mark P. 5 · 0⤊ 0⤋
by selling articles that aren't reclaimed in the required time,
and for charging a fee for the money loaned on the "hocked" items.
2007-03-12 15:28:57 · answer #5 · answered by Anonymous · 0⤊ 0⤋
they buy your stuff for cheap, and sell it for three times as much!
2007-03-12 15:19:36 · answer #6 · answered by Anonymous · 0⤊ 0⤋
you pay more money to get it back, and if you don't come back, they sell it.
2007-03-12 15:19:28 · answer #7 · answered by You may be right 7 · 0⤊ 0⤋