Should I Pawn or Sell My Item in Mesa, Arizona?

When you need cash fast, you can take your valuable items to a Mesa pawn shop to either sell or pawn them. But that’s where you might face a conundrum: Should you sell your items, or should you pawn them?

When you sell your item, you relinquish it in exchange for the cash and your transaction is over. When you pawn your item, you provide it as collateral for your loan, and you pay it back with interest within the term that was set. You end up paying a little extra in exchange for getting the cash, but you also get to keep your valuables, which will allow you to sell or pawn them again later.

But which actually nets you more money up front? Selling or pawning? Here’s what you need to know:

All Prices Made as If the Item Will Sell

Though most people get their pawn loan with the idea that they will get their item back, the sad reality is that many don’t. Perhaps some other bills come up that they have to pay, so they stop paying on the pawn loan. Or perhaps they lose their jobs or run into some other financial problems and let their pawn loans forfeit.

Pawn shops understand this reality, and they make their offers based on the understanding that they may eventually have to sell that item.

Price Includes Unpaid Interest

If an item is forfeited through a pawn loan, the pawn shop has to recuperate more than the value of the unpaid principal of the loan. The shop also has to recuperate the lost interest, which was calculated into its business forecast. Without making that loan, the shop could also have invested that money in other ways that made them the same interest, so a forfeited loan really represents a loss.

Therefore, if an item was pawned for $100 and had an interest rate of 20 percent, its value was really $120. If that same item was being sold, the pawn shop may offer the full $120 because there is no risk involved. Those getting pawn loans will almost always get less because the shop owner has to factor in the risk of lost interest.

Pawn Shop in Mesa 85210 | Pawn Now

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Potential Exceptions

You may get a little more for your pawn loan if you are a long-time customer who has a history of always making timely payments with the pawn shop. The owners may know that you are reliable and may give you the extra, knowing that you aren’t a risk. However, this isn’t a guarantee, and these kinds of decisions are made on a case-by-case basis.

At Pawn Now in Arizona, we try to offer customers the best prices whether they are selling or pawning an item, and we keep our pawn loan rates low to minimize your need to default on the loan. We do everything we can to make selling or pawning a beneficial experience for you and us. Contact us or visit one of our locations today to get an estimate for your valuables.