Pawn shops are an ideal way to generate income. You can sell or loan items of value to cover expenses. But what happens to your items after you pawn them? This article will tell you what you need to know.

Selling an Item

If you sell an item outright, the pawn shop will enter it into their inventory and offer it for sale. Items that sell find a home with another person.

It’s unclear what happens to items that don’t sell. They may get donated, or the pawn shop may dispose of them.

However, the pawn shop will never ask you to take your item back and return the money. Once a pawn shop buys an item, it is theirs to do with as they please.

Loaning and Item

Pawn shops also offer loan programs. People can come in with items of value in return for a loan. The pawn shop will assess the item and offer you a loan based on its value.

If you agree to the amount, you can leave with cash in hand. The pawn shop will hold your item until you repay the loan. Then they will return it.

If you cannot repay the loan, they will hold on to your item and attempt to sell it. However, the unpaid amount will never go into collections or damage your credit.

What if Something Happens to My Item While the Pawn Shop Has It?

Your item may get damaged or stolen while it’s in the pawn shop’s possession. Most pawn shops have insurance to cover these damages and will repay you for your lost or damaged item. Ensure a pawn shop has insurance before initiating the lending process.

What if the Pawn Shop Sells My Item?

In some instances, a pawn shop may get confused and sell an item they should be storing as collateral. The pawn shop is legally obligated to return your item to you or reimburse you for its value. If they fail to do so, you may take legal action.

Will the Pawn Shop Hold on to My Item if I Default on My Loan?

Say you miss a few payments and don’t have your loan paid off by the due date. You may still be able to get your item back.

Most pawn shops will hold on to an item for around 30 days before trying to sell it. They use this time to ensure the item is not stolen. It may take a month for them to get a police report back on the matter.

If, during these 30 days, you come up with the money and want your item back, the pawn shop may accept your payment. Interest rates may apply.

Cash Express Keeps Your Item Safe

Cash Express is a trusted local business. We will store your items safely ensuring they get back to you in one piece. In a worst-case scenario, our company is fully licensed and insured and can cover any damages that occur.

Contact us for great deals, affordable loans, and service with a smile.