The Truth About Pawnshops: Myths and Facts You Need To Know

Pawn shops tend to be stigmatised by their very title. Over the years, the pawn industry gained an unfavourable reputation as a low end store that fenced goods, sometimes even stolen items, from portrayals in TV, movies, the news media, even friends, neighbours, and even family. The place simply was not considered a place in which most people shopped. Well, this is simply not true. Let's examine the Pawn Industry's myths versus its facts. MYTH: Pawn shops trade stolen goods. FACT: All local, state, and federal laws are followed by pawn shops. They have a licence to work with police in order to prevent selling of stolen goods. As part of every transaction, the seller must not only present a valid photo ID, but also stamp the contract with their finger print. To ensure accuracy in inventory, all items received are meticulously catalogued in collaboration with local authorities. The police routinely compare serial numbers to stolen items, allowing recovered merchandise to be returned to the rightful owner whenever possible. MYTH: Pawn shops only attract undesirable clients FACT: The typical loan customer who pawns an item is a local resident who needs a cash loan for a short period of time to cover unanticipated expenses. It is usually a lack of savings rather than a lack of job or income that motivates them. They live paycheck to paycheck, and sometimes those paychecks or pay periods are a few days late. FACT: Shoppers at pawn shops are bargain hunters! Why pay retail when gently used products, which appear to be new anyway, are frequently available at surprisingly cheaper prices? MYTH: Pawn shops are unregulated and operate as they wish. FACT: The business of pawnbroking is heavily regulated. Pawnbrokers are in fact required to be licensed at the local or state level. At the federal level, they are governed by the Bureau of Alcohol, Tobacco, and Firearms (ATF) and are essentially identically supervised by the Federal Reserve Board as banks.They must also check all clients against the Treasury Department's database of known terrorists, as required by the Patriot Act. Trying to sell stolen goods to a pawn shop is not a wise decision! MYTH: Pawn shops are the last place people with bad credit can turn to for loans. FACT: Compared to borrowing money from family and friends, pawn shops offer better loan terms. The process is quick and confidential, and the buyer gets a portion of the proceeds if the collateral is sold. Although the loan-to-collateral ratio varies based on the type of assets pledged, a loan of 30-50 percent of the collateral's resale value is very normal. MYTH: Pawn shops hope you won't return to get your pawned items so that they can sell them. FACT: The amount of space available in pawn shops is restricted. They're after your loan's interest, not your personal stuff. All objects pawned are meticulously catalogued and traced. If you have not returned to First Pawn for your products, we will call you to double-check before classifying it as inventory and a closed loan. MYTH:Pawning occurs only when people no longer want items and don't care if they get them back. FACT: Pawn loans are much faster and easier to obtain than working with a bank based on credit. Pawn loans are the only financial product that has ever existed that provides a borrower with short-term cash with no obligations. MYTH: Pawn shops aren't known for having high-quality brand-name products; instead, they specialise in used garbage. FACT: Living in this high tech society requires upgrading everyday. It urges us to keep you with something every second. When the new Mercedes comes out or the new Ducatis release, you can find them with us from the second to the last model. Pawn shops can help you upgrade your old stuff into newer or shinier versions and at the same time, save you a huge amount of money. Here at Cash Fast Loans Car Pawnbroker and Moneylender, we take pride in our business. We are premium Fast Cash Pawnbrokers, Car Pawnbrokers & Moneylenders in Parramatta, Sydney. We have thousands of happy customers who borrowed short term cash loans from us. Come in and chat with us today if you are looking for something special or just need a little additional cash. We are located in Parramatta, the central location of Sydney. Contact us for further information at 1300 227 432 or [email protected]