7 Common Questions About Pawnbrokers

 7 Common Questions About Pawnbrokers

 

  1. What’s a pawnbroker?

Pawn-dealers, Pawnshops, Hockers-  no matter what you choose to call it is probably the second oldest career!! The history of pawnbroking dates back 3000 years ago in China. Traditionally, pawnbrokers traditionally were a last resort, but the world has changed and now pawnbrokers are seen as an alternative to banks.

  1. How pawnbroking works?

Pawnbrokers lend money based on the value of the collateral presented. The lender has to pay the money back with interest before getting his goods back.  A pawnbroker will add fees to the total loan repayment value. If you are comfortable with the price then you get to walk out of his shop cash in hand.

Although Pawnbroking loans are short term, there’s still a little amount of legal work to be finished, as well as appraisal of all of the collateral received. Melbourne Pawnbrokers offer a venue that is completely distinctive from banks. They deliver speed and convenience that banks and other financial institutions don’t.

  1. Are all pawnshops the same?

Not honestly. Today there’s a modern-day breed of pawnbrokers, who have taken pawnbroking to an entire new direction. They can lend you $1,000 to $500,000 and accept more than just expensive jewellery, but will take your fashion designer watch or handbag and even your Ferrari as collateral.

  1. So, who uses Melbourne Pawnbrokers?

Historically, it was low income earners who used pawnshops. These days, anyone who needs quick cash uses pawnshops. You don’t have to be poor or living from paycheck to paycheck, sometimes people go through different things in life that may require access to quick funds.

The middle and higher classes are not exempt from this with quite a few electing to use a Pawnbroker’s services, for their speed and convenience.

  1. How Much can I expect?

What you can expect to get from a Melbourne pawnbroker depends on the collateral you bring. For instance, you can pawn jewellery and anything of value, a Pawnbroker will give you a percentage of the retail value. If you don’t return to redeem your items, the pawnbroker will sell.

  1. What is “marketplace price”?

Not all costs are equal. When buying expensive jewellery from a jeweller, or that new car, you’re paying the retail price. If you decide either one of these things you’ll get the market rate not the “replacement fee” or the same amount of money you spent in the first place. The distinction is what’s called “depreciation” – and it covers the mark-up the supplier has, their rent and overheads and which first-class coffee they provide you. The link between market price and also the retail price varies from one time to another; with jewellery, you can expect anything from 30% to 60% of the retail price.

  1. Is there a minimum loan period?

Pawnbroker loans are for three months in duration but a few Pawnbrokers can let you extend the period if required. But it will cost you more. Either way, you will be able to pay (redeem) it back early and get most out of the experience if you take the time to understand what a pawnbroker is and how they work.

Paul Petersen