Pawning may not be the best option to get extra cash but for all of us who need quick money, this is one popular way to do it.While we have the option to get extra cash through short term loans or selling an item, pawn stores still find a variety of ways for us not to get the maximum appraisal value of what we sell. This article lists down the tips that will help us in negotiating with pawn stores.
1. Don’t disclose where we got the items. For instance, we should refrain from telling various pawn stores that we got an item from a garage sale because of two reasons: first, making such claims means that the item doesn’t have any sentimental value to us and second, this shows that we’re likely to agree with whatever amount they will offer us.
2. Never tell them how much we paid for that item. Whenever we purchase something at the mall, do we ask the sales staff if how much did they pay for selling that item? Or if we request for a bank loan, do we ever ask the teller if they have funds for all the loan requests? Of course, we don’t. Same thing applies when we sell or pawn our items to a pawn shop. They don’t care about how much we paid for it because they will just offer an appraised value of that item based on their own terms.
3. Stay away from telling them the cost of an item. All pawn stores are there to make profits out of appraising items. It’s THEIR responsibility to determine the item’s value, not ours. So, if we know that our jewelry is worth $1500, then we have to keep this to ourselves until they figure out its value. If these shops really want to purchase our item, let them spend some energy to appraise it.
4. Have an estimated appraisal value in mind before stepping inside a pawn shop. Don’t give our all-out trust to the appraisers. For all we know, they are just trying to provide much lesser value for our item than its true value. If we accept it, it’s their gain and that’s our loss. One good way to prevent this is by having an estimated appraisal value of that item with the help of other people.
5. Wait for them to make that first offer. There is one excellent tip that can be applied whenever we do some negotiations: the first one to make the first offer loses. Whether that’s a proper value of the item or not, sharing that first offer will always benefit the other. For instance, if we want a $1500 for a certain jewelry, let the pawn dealers offer a particular amount first so that we can know if we’re getting somewhere between 70 to 80% of our desired amount. If we make the first move of telling that desired amount, pawn shop dealers might provide an offer that’s about half of the item’s real market value.
6. Don’t agree to the terms immediately. It’s our right to clarify any loan amount, interest rates, additional fees and payment options before entering into an agreement. Keep in mind that our valuables are on the line and we want to make sure that we can walk away with them once we’re done paying all the charges within the covered period.
7. Ask if we are required to present necessary documents. We are all required to submit proper identification to all pawn stores to ensure safety and security of our items. If they didn’t ask for any, we’re probably dealing with a fly-by-night shop.
8. Prepare to walk out their doors. If we feel that they offer shady services, unreasonably low appraisal rates and questionable loan terms, we can walk out their door and look for the next shop. We shouldn’t settle for their offer which is equivalent to 50% less of the item’s real market value. If this is the case, then we can also consider selling the item at auctions or on eBay if this is the case.
By keeping all these tips in mind, we can always prepare ourselves for the worse that could happen when we are about to sell or pawn our items.
We can also check out sites like http://www.majorpawn.com to find a pawn shop that fits our needs.