pawn shop questions

February 14, 2008 12:27 PM

My first time at a pawn shop: basic questions about pawning an iPod and other recent electronics.

First, I'm sure pawning is the best choice for me right now (not craigslist or ebay), and I already know this is a bad situation I should take care not to be in again. I'm just asking to find out about pawn shop mechanics.

To the pawn shop I'm bringing these things, all excellent conditon:
- an iPod Nano (2nd generation 8GB/black)
- a digital video camera (that's averaging c. $220 used on ebay)
- a digital still camera (that's averaging c. $70 used on ebay)

Question 1) Would it matter if I bring my original packaging for these things -- especially for the iPod since those are so commonly stolen? And do I need to bring the iPod reset to its factory state, or can I leave my stuff on it? (I have no personal info, photos or purchased songs on it, just regular mp3s.)

Question 2) Can you make any guess about the cash I might get offered (at a pawn shop in NYC, where I'm pawning not selling outright)? For example, do you think I'm likely to get loaned at least $50 total for these three things?

posted by anonymous to work & money (12 comments total)

1) I would bring the packaging if you have it, but don't worry about non-personal information.
2) $50 total? Sure.
posted by unixrat at 12:46 PM on February 14, 2008

You're not going to get much money out of these at all. Original package will definitely help (Shelf appeal is key). I feel like you could get $100 just standing on the street and asking passersby to buy your objects.

If you're looking for a quick loan and want to keep your electronics when you pay it back next week, pawnshops might not give you enough money to solve your problems. Pawnshops are huge ripoffs all around.

I would consider pawning it to a friend instead, even if I only knew you for a week or two I'd take that deal...
posted by ZackTM at 12:51 PM on February 14, 2008

They'll take your info anyway, and the serial numbers of the stuff, and then check w/ the po-po about whether or not it's stolen anyway.

Don't tell them what you want for it, let them make you an offer.
posted by TomMelee at 12:58 PM on February 14, 2008

Yeah... that's the nature of "pawn". High interest loans using items as collateral. I've only used pawn once, about 10 years ago. I think I got $500-600 for a ring that appraised for $6000. I did subsequently retrieve the ring. Since you are looking for far less money, I would think those items should get you at least $50. It really depends what is selling well at that shop, and what they have in stock. I mean, even if you intend to retrieve your items, they are looking at them as a potential merchandise.

If the pawn doesn't work out for you e-mail me (in profile).
posted by kimdog at 1:11 PM on February 14, 2008

From my limited experience, to work out in advance how much they should offer, look at how much they are selling similar items for, and halve it. (They will generally sell items with a 100% mark-up on what they paid for it, and that marked-up price has to be a value at which they think they can sell it fairly quickly). For things that don't date, depreciate, or go obsolete, this is normally about 25% of purchase value. For electronics (which do all of those things) it's probably going to be a lot less. But I imagine you should get $50 or more, yes. Lastly, don't think of it as a loan. Unless you're back in a few hours, your stuff may get sold.
posted by -harlequin- at 2:10 PM on February 14, 2008

"don't think of it as a loan. Unless you're back in a few hours, your stuff may get sold."

I don't mean to suggest you can't trust them to hold it for you for X amount of time before selling if they tell you they will hold it for you, but some places are not interested in loans, just merchandise, so might not offer to hold it any longer than their normal time to get it on the shelf period. Depending on where you live, anti-theft laws might require they not sell it for X period of time, in which case you'll know how long you've got.
posted by -harlequin- at 2:18 PM on February 14, 2008

Lastly, don't think of it as a loan. Unless you're back in a few hours, your stuff may get sold.

Methinks you don't know quite how pawn shops work. They're regulated and will not just resell your stuff if you've taken out a loan on it.
posted by Item at 2:25 PM on February 14, 2008

item: My point (which I thought was clarified) is that if they give you money, that doesn't mean they've given you a loan. If it IS a loan, then yeah, follow the fine-print and you're good. But don't walk in, ask how much they'll give you for X, walk out with the money and assume it's a loan. Because they also buy merchandise for re-sale, and some places only buy merchandise for re-sale. Those places may not technically be a pawn shop, but everyone I know makes little to no distinction. And both types give you money for your stuff. So pick the right one and get a loan.
posted by -harlequin- at 3:19 PM on February 14, 2008

I see what you mean, but a pawn shop's not going to conduct an exchange without asking if you want a loan or if you want to sell the item. I've hocked my share of stuff over the years, and have never had a shop not ask me. Usually, a shop'll give you more money on a loan than if they're buying it from you.
posted by Item at 3:44 PM on February 14, 2008

look at how much they are selling similar items for, and halve it.

If you're looking to sell the stuff outright, maybe. If you're looking to pawn it and reclaim it later... no way. I work right next to a pawn shop and regularly use their front stoop to smoke my cancer sticks when I take breaks during the day, and if I had a nickel for every time someone walked out of the pawnshop swearing to high-heaven at what a rip-off it was, well, I could probably open up my own pawn shop.

Do not go into this expecting to feel anything but totally ripped off when you walk out the door. It's just the nature of the business.
posted by Civil_Disobedient at 4:31 PM on February 14, 2008

My apologies. To answer the questions directly:

1. The original box will only matter if you're trying to get rid of it. Of course, the pawn shop owner is going to be looking at any merchandise--even pawned goods--for their potential resale value if you decide you don't want to bother buying it back. Things with their own boxes and documentation are clearly more desirable in this respect.

2. $50 for everything sounds about right. The "right" way to do it would be to pawn one item at a time, instead of everything together in a bundle. The dealer might not want to pay $50 for all three, but will gladly offer you $10 for the Nano, $30 for the video camera and another $10 for the still camera (if it's an SLR that comes with a lens, don't forget that's extra--if it's an all-in-one, you can safely ignore this parenthetical observation).
posted by Civil_Disobedient at 4:36 PM on February 14, 2008

-harlequin- does not know what he/she is talking about.

They said:

From my limited experience, to work out in advance how much they should offer, look at how much they are selling similar items for, and halve it.

This is nonsense. The markup on Pawn Shop items varies greatly, but you're lucky to get 1/10th for what your item is selling for on the floor.

don't think of it as a loan. Unless you're back in a few hours, your stuff may get sold.

Wrong again. Pawn shops don't want to sell your crap. They want to keep in the back in hock while you come in and make the minimum payment necessary to keep them from putting it on the floor. Usually this means you go in and pay just the interest on your loan.

some places are not interested in loans, just merchandise

I don't know what those places are, but they sure as hell ain't pawn shops.

Pawn shops make only a tiny, tiny percentage of their money from retail sales. The vast majority of their profit comes from people using them as a bank.

anti-theft laws might require they not sell it for X period of time, in which case you'll know how long you've got.

The paper work involved in pawning something all spells out very specific requirements to keep your item from being sold. Usually that means you come back and pay it off in a week or a month, or you make a down payment on the interest.

some places only buy merchandise for re-sale. Those places may not technically be a pawn shop, but everyone I know makes little to no distinction

Yeah, well the question was about pawn shops, thanks for interjecting several posts worth of misinformation.

Pawn shops are designed to exploit people's pride and sense of ownership. I have a friend who owns one. He has merchandise which has been sitting in his rear storage room for years because the owners continue to come in every week and pay down the interest. If the people had just taken that $10 or $20 and put in a savings account they could have bought a brand new television or stereo, or whatever, but because they are so attached to their belongings they come in week after week just to keep him for selling it. He had a lousy Sayno 32" television in the back which ultimatly wound up costing the owner hundreds of dollars in interest all because they guy was too stupid to just let it go.

Almost everything you see on the pawnshop floor was already paid for (sometimes several times over) before it was put up for sale by the pawn shop. People borrow money, intend to pay it back, make a few payments on the interest before giving up. The pawnshop profits several times over throughout the transaction.*

Don't ever pawn anything that you don't intend to buy back within a few days, or anything that you absolutely can't live without.

* Incidentally this is why pawnshops are so easy to haggle with. Whatever you're trying to buy has usually been paid for already. Anything you pay is just gravy.
posted by wfrgms at 10:15 PM on February 14, 2008