How to Get the Best Price From Your Pawnshop

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The number of pawnbrokers has been on the rise in recent times. This is because of tough economic times, rising prices of precious metals like gold and a sluggish economic growth. These issues are attracting more middle class customers who are looking for short-term loans to get them over temporary financial humps. How can you get the best from a pawn shop Melbourne.

  • Sell or loan

Pawnshops give customers the option of either selling their valuable items or using it to secure a loan. There is more money to be made by selling but most pawnbrokers would rather make you a loan because that way there is a chance that you will come back and do more business with them. When you sell your valuable items like gold jewellery, a pawnbroker may pay you 10 to 20% more than what he would offer as a loan. Some pawnbrokers even offer up to 75% of the retail value of the item when you sell. This is because when a broker buys something outright, he does not have to hold the item for a long time but can sell it for a profit right away.

  • Loan terms

When you take out a loan from a pawnshop make sure you understand the terms. The interest of loans is calculated on a monthly basis. Terms may vary from 30-day, 90 days and even six-months with interest ranging between 2% and 10% a month depending on the value of the loan. Different pawn shops Melbourne have different loan terms and even different interest rates, make sure you compare them before you decide on a particular pawnshop.

  • Shop around

If you have jewellery to sell, it would be wise to look at more than just pawnshops. When selling gold jewellery for instance, it is advisable to look at what the spot price of gold is and to find out what it would be worth based on that price, the amount and the purity of the gold you have. Pawnshops don’t necessarily use the same process to evaluate gold jewellery that gold buyers or jewellers use. Have your items appraised and find the best offer for it.

Haggling or negotiating is expected at pawn shop Melbourne. Pawnbrokers may offer something slightly less that you hoped for, you have a duty to negotiate the price up, even if its by a few dollar. Don’t just accept the first offer you are given.

  • Offer valuable items

Whether you are looking to sell or loan, a pawnbroker will only be interested in valuable, quality pieces that are in good condition. You cannot take your broken jewellery to a pawnbroker because he will not be able to sell. If you have gold jewellery that is broken, the best way to get cash for it is to take it to a scrap gold buyer who is only interested in the quantity of the precious metal and nothing else.

Quality, high-end merchandise like Rolex watches or Tiffany bracelets can get up to 85% of their retail value. Common and inexpensive pieces that aren’t as valuable might turn out to be worthless.

  • A good story can get you far

Most retailers aren’t interested in your stories, they don’t want to know what an item means to you. If you were selling an heirloom with some deep, significant story telling your pawnbroker about it might help you get a better offer for it. Emotional attachments are an asset for a pawnbroker because they usually mean the customer will want to pay the loan back soon so that he or she can get that special item back. If giving you an extra $50 dollars for your grandma’s wedding ring that has been handed down from generation to generation will encourage you to come back and reclaim it, pawnbrokers know that they stand a better chance of turning you into a repeat customer.

So, work out the value of your items. Decide whether you want to sell or pawn. Find a pawnbroker with low interest rates and great service. Turn on the charm and tell a story as you negotiate for a better price and walk away with cash in hand in just a couple of minutes.


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