Pawnshops offer a valuable resource for those looking to get a cash loan quickly. Pawnshops are retail stores that have the licensing to provide loans based on some type of collateral such as a piece of jewelry or a power-tool basically anything of value. Pawnshops also will buy your merchandise outright or offer you store credit, so in a nut shell a pawnshop is a local provider of cash loans based on collateral. Central Jewelry & Loan is a locally owned and operated pawnshop that is fully-licensed.
The Pawnshop or Pawnbroking has been around in one form or another for a very long time. In fact the history of pawn or collateral lending goes back for thousands of years. For instance back in the 1400's the queen of Spain was said to have pawned her crown jewels to fund Columbus in his search for a new route to India. Yes the pawn business has definitely changed over the years but the basic principle of lending cash for some type of collateral of value has stayed the same.
Most people who choose to get a pawn loan do so because of how convenient and easy it is to get the cash they need. The pawn loan does not require any type of credit check and is confidential. Its the item that you are looking to get the loan against that dictates the amount of your loan. There are all types of reasons to get a quick cash loan such as needing a bill paid, taking a trip, or just to make ends meet for a period of time. When a person gets a pawn loan the amount they receive is based on what the pawnbroker feels they can sell the item being pawned, if the loan is not re-payed and the property not redeemed. Generally speaking pawnshops tend to lend up to 50% of the value they believe they will get if the item is sold.
A pawn loan works the same way many loans work you get a certain amount of money based on the collateral, then you have a specific term to payback the loan with interest.The Pawn Loans tend to be small around $80.00 - $100.00 (The National Pawnbrokers Association has the average pawn loan at $100 up from $80.00 from 2008) but can go much, much higher again it all depends on the item being pawned. Pawn Loans are subject to California state law, which states that a pawn loan can be $5-$50,000. The standard pawn loan Term is 4 months with a 10 day grace period. If you are unable to back your loan in full in the time allotted here at Central Mega Pawn we offer several alternatives including a loan extension or renewal, you can also just surrender the collateral as loan payment in full.
You will need some form of identification that is current and valid this includes a valid drivers license from the U.S. or Canada, A U.S. Passport, An Identification card issues by the Untied States or any state in the U.S. a passport from another country or Matricular Consular in addition to another form of I.D. that has an address on it. Any of the above mentioned sources of identification is basically all you will need along with your collateral to receive a pawn loan
If you find yourself unable to pay off your pawn loan in full at the prescribed time, California state law permits you to get a replacement loan. A replacement loan requires that you pay the the interest that has accrued on the loan in full, at that point a new loan loan drawn up with a new due date. in the case of a replacement loan the terms are reset as if you had received a new loan including the principle amount and the interest rate with only the due date being changed.
According to the National Pawnbrokers Association the average collateral forfeiture rate is about 20%. Here at Central Mega Pawn we see a very low forfeiture rate and the overall majority of our customers repay their pawn loans and pick up their merchandise. However when a customer simply stops paying their loan and shows no desire to repay, or fails to pay the loan in time and chooses not to extend or renew their loan, their merchandise is then forfeited.
Here at Central Mega Pawn we calculate the value of an item based on a few factors including the condition of the item, the appraised value and on what it can be sold for in today's market. We have several research tools at our disposal and do our best to give the best prices available on the items we do pawn loans on. Now different items are of course evaluated differently for example a a gold coin can be appraised based on the value of the gold or on the value of rarity of the coin itself, Jewelry will be evaluated differently from an Iphone which will be evaluated differently from say a power tool and so on. Some items like collectibles and antiques can gain value over time while electronics tend to lose value relatively quickly all of these factors will play a role in how your item is valued.
The condition of an item definitely plays a role in how an items value is determined. Like value conditions are determined differently for different items. A good example is a ring that appears to be dingy and even scratched can be cleaned easily and polished and therefor can be valued very similar to a ring that appears in good condition however a television that is scratched or even has a crack in it which cannot easily be repaired but is in fine working condition will be valued quite a bit less than a television that is in great condition with no cracks or issues. But in general we determine condition based on its working order, its appearance, and its sell-ability.When determining a value with electronics we always plug the item in to make sure that it works properly and that the additional items that go with it like a remote control and owners manual are there. in the end the better the condition of any item, the more money we loan on it. This is generally true with all pawn shops.
Jewelry is a popular item of collateral at our pawn shop and determining the value is important both to us and our customers. When we determine the value of any piece of jewelry we test the precious metals as well as the precious stones to make sure they are first of high grade and second are authentic. We always have a member on staff that is well trained in appraising jewelry using a jewelers loop and using the items weight, cut, quality, clarity as well as current market values of precious metals to determine the value of the item and the amount of the loan on the item.
It really does depend on the type of item that is being pawned for instance a standard bar of silver will have it value based on the weight and current spot price the same goes for a standard bar of gold or platinum. However if the item has some additional intrinsic value such as rarity, design, shape, composition, desirability,color, market conditions etc., it can be valued at more than just the spot price of the metal and its weight (jewelry and rare coins are a great example of this)..
Most pawn shops including ours tend not to give quotes over the phone. Since pawn loans are based on the quality and sell-ability of the item being pawned an inspection is necessary to give an accurate quote. Even sending a photo is not enough to get a truly accurate picture of the functionality and quality of an item that is to be given a loan against.
When an item is pawned it is generally held in the store it was pawned at and only accessible to authorized employees. Jewelry gold and silver and collectable coins are held in a safe ( in our case a large safe that is secured to the foundation of the property). Safety is a top priority and we not only have 24 hour surveillance equipment throughout the store we also make sure that all security gates are locked and all items are securely stored when the shop is closed.
Pawn Shops are regulated by federal, state and local authorities, in the case of California it is regulated by the California Dept of Justice and licenses are administered by local sheriff, chief of police or in some cases a police commission. Pawnshops are subject to to federal laws such as the Truth in Lending Act, The Patriot Act, and the Federal Trade Commission to name just a few. For those pawnshops who carry fire arms they are also regulated by the Bureau of Alcohol, Tobacco and Fire Arms (ATF).
Though many people may think a pawn shop is a good place to sell stolen goods the opposite is actually the case. Pawn shops are heavily regulated (as mentioned in a previous faq) and in general less than 1% of the merchandise in a pawnshop is identified as stolen and those are almost always reported to the authorities before they ever would go out to the public. We at Central Mega Pawn work closely with local authorities to ensure that we are in good standing and that the items we have on our showroom floor and in our inventory have been acquired legally.We train all of our staff to be diligent and on the lookout for stolen items.