Pawning vs Selling

Posted on: 16 June 2015

Some months you just run a little short on funding. It happens to the best of us, when unplanned expenses show up and you aren't able to counter them as well as you would like. There are many options for someone who is in desperate need of funds. One of those options is pawn shops. Pawn shops are interesting places, simply due to the fact that you can choose to sell your item and walk away, or you can choose to pawn it. This article will define the difference between the two, and the benefits of one over the other.

What is pawning?

Pawning is essentially getting a loan from a shop with an item as collateral. If you fail to repay your loan, the item is repossessed and the pawn shop will be able to sell your item to whomever it wishes to try and recoup its loss.

There are also various terms and conditions that are attached to the items, such as late fees, interest and other possible fees that may accumulate.

Benefits of pawning vs. selling

There are several big differences between pawning and selling. The first big one is that with pawning you can get the item back, but you will actually have to pay back the money that you borrowed. With selling, of course, you get the money permanently but do not get your item back.

This becomes very consequential when dealing with items that are worth a lot of money, or that are very sentimental to people.

With items that are worth a lot of money, pawning can often be a risky thing. If you aren't able to repay your loan, you could wind up losing the expensive treasure. Selling it to a collector might give you a better chance at a larger sum, if that is what you are looking for.

With items that are sentimental in nature, it actually is better to pawn rather than sell. Pawning allows you to get your item back, once you repay your loan and the appropriate fees.

Remember, it is your choice what you do

Over all, it is your choice whether you decide to pawn or sell, or find a completely different method of getting an influx of money. If you do choose to visit a pawn shop like Chauncey's Pawn & Gun, just remember the benefits pawning and selling with regards to the item you are willing to put up for collateral.