How to Score the Best Deals at Pawn Shops

I once thought pawn shops were just crooked places that would rip me off. I literally never went into one for years just because of that belief. When I finally did, I realized I could actually save a ton of money. The best part is that you can bargain with them too!

Tips for Buying

To get the best deals and find ways to negotiate, there are a few things you should know. First, when you are looking at merchandise look for any flaws. Be sure to test everything before you buy as well since generally there is a strict no return policy. If you find flaws, negotiate a lower price.

Be sure to take cash. Pawn shops are much more likely to accept a lower price if you are paying with cash instead of a card. This is also a great way to stick to your budget – take only what you have planned to spend. It’s pretty easy to impulse buy at a Pawn shop, especially if it’s your first time visiting one.

Check the date code on the price tags if they have one. Items that have been in the Pawn shop a while will give you more negotiation power. Owners want to sell items as quickly as possible to make room for anything new that could come in at any moment.

Be sure to check their return policy, as well as the fine print. Especially if you are buying something because of the brand or its authenticity, most Pawn shops do not guarantee the products’ authenticity. For instance, a Coach bag at a really good price may or may not be authentic.

How Pawn Shops Work

If you are still not sure about shopping at a Pawn shop, let’s take a look at how they actually work. Pawn shops specialize in giving small loans to individuals in return for holding their goods as collateral. The person that receives the loan can walk back into that store for a specified period of time and get the item they pawned back.

To get their item back, they do have to pay back the loan, along with interest. If the person does not come back into the Pawn shop to repay the loan, the item they left the Pawn shop as collateral is sold by the Pawn shop. If they do, they’ll get their item back. As you can see, not all that crooked after all.