Whether you need to raise some cash for financial emergencies or want to make a purchase at a pawn shop, it’s important to know what you’re getting into. Pawn shops in Olathe, KS are a great way to find unique jewelry, precious metals, tools, firearms and more—but since they’re secondhand items, you’ll need to know what to look for. Here are some pawn shop FAQs.
How does a pawn loan work?
Pawn loans typically last for one month, with a one- to two-month grace period. You offer the shop collateral—for example, firearms, jewelry, precious metals and other valuables—and the shop will give you the value of the item as a loan. If you pay them back within the agreed-upon period, you get your items back.
Can I get an extension?
If you’re unable to pay back your loan by the due date, you can get an extension. This usually involves paying a portion of the interest accrued. Then you can extend the loan as long as the state rules allow.
What happens if I can’t repay my loan?
If you can’t pay your loan, the items you used as collateral are put up for sale. If you forget about repaying your loan, and the shop still has the items, they’ll do their best to help you get them back, but there are no guarantees.
Are my items safe when they’re in pawn?
Yes. During the agreed-upon loan period, your items are held as collateral. It’s only if you fail to repay the loan that they’re put up for sale. If you take out a pawn loan, make sure you mark the important dates on your calendar, and ask for extensions well in advance.
How do you determine the value?
Pawn shop employees are expert appraisers, with years of experience determining the value of your collateral. The process depends on what kind of item you’re selling—for example, precious metals and jewelry are tested according to industry standards.
Are pawn shops regulated?
Yes. States regulate the pawn industry, and pawn shops may be licensed and regulated by local government or regulatory agencies as well. For example, they’re bound by agencies like the Federal Trade Commission, the Bureau of Alcohol, Tobacco, Firearms and Explosives and more.
Do pawn shops sell stolen merchandise?
No. Studies show that less than one percent of pawn shop merchandise is stolen. Thanks to regulations and partnerships with local law enforcement, pawn shops are one of the worst places to try to get rid of stolen merchandise.
How do I know I’m getting a good deal?
The best way to get a good deal is to research the current market value of a specific item, and visit several local shops to get an idea of how much it’s selling for in your area.
If you have more questions for pawn shops in Olathe, KS about how to buy and sell, visit the experts at Harrison Street Pawn today. We’d be glad to provide the information you need.