What Techniques Pawn Shop Use to Ascertain an Item’s Value?

When you find yourself in need of an instant cash loan to deal with an urgent situation at hand such as paying for medical expenses, car repairs or any other unexpected bills, where would you turn for help? Well, pawn shops can be easily reached out as they can offer you a fast cash loan for any of your used item that’s in a good state and working appropriately. So, all you need is quality second-hand goods of value that you can hand over to the pawnbroker as a security guarantee for the loan money.

What Criteria Pawn Shops Follow to Ascertain the Value of Used Goods to Provide Pawn Loan?

Assume, you’re taking any used item of value in good condition to the pawn shop to take out a quick cash loan against it. Now, how will the pawn shop ascertain its worth?

• Well, if it is one of the popular items that is frequently pawned; for instance, gold, silver or any other precious metal, then it is easy for them. They will just look up their current listed price on the open market, and accordingly, arrive at an offer, which they can provide you as a pawn loan.
• However, if you take a used item of value that is unusual, then pawn shops will look at website portals such as eBay where a large variety of second-hand items are being auctioned, to get an idea about the product’s price, and accordingly, they will offer you a pawn loan.

What Is the Major Consideration on Which Pawnbrokers Rely On?

While offering instant cash loans, pawn shops will think as if you’re selling the used item and will consider the value for which it will be traded, in case you don’t turn up to redeem the item. Based on these assumptions, they will offer you a pawn loan for your used item. This is a major consideration that pawn shops or pawnbrokers apply while deciding the pawn loan amount. That’s because, many a time, people don’t turn up to redeem their used item and pawnbrokers have to sell them on the open market, to get back their loan money, interest and book some profit so that they can remain in business.

Should You Pawn or Sell Your Quality Second-Hand Item of Value?

The pawn shop knows that most people who pawn their used items for a quick cash loan would want to redeem their item. If they just wanted the cash, they could sell the used item straight away.

Usually, customers taking out a pawn loan would also want to redeem their item and pawn shops know it. However, pawn shops need to take into account the fact that many people won’t be able to redeem it, even if they want to. In all likelihood, many people will have to forgo their old gold jewellery and other valuable items to a pawn shop; thus, pawn shops price loans considering this aspect that they will own the used item(s) soon and may have to sell them.

Final Say: Pawn or Sell the Used Item(s) to the Pawn Shop

• If you’re determined to redeem, then pawning the quality used item is something you should look at.
• Selling the gold jewellery or other quality used items to the pawnbroker will often fetch you more money than pawning them. So if you’re not serious about redeeming your item, then it’s better to sell your quality used item outright to the pawnbroker to grab a better deal.

Get in Touch with Mega Cash – Pawnbroker in Sydney

Mega Cash is a licensed pawnbroker and second-hand dealer in Sydney. Come to us when you need an instant cash loan along with your quality second-hand items. We also buy used items in good condition and offer top prices. We accept a variety of used items such as gold jewellery, electronics, home appliances, gardening tools, musical instruments, smartphones, music systems, sporting gear, gaming, toys and more. Contact any of our eight branches spread across NSW and one in QLD – just scroll down for our store locations.

Also Read: What Second-Hand Items You Can Pawn or Sell Outright?