1 definition by oldspankie
A store of various sizes - sort of an "every-day garage sale" - that people goto in search of a small loan in place of an item as collateral. Most/Some places will hold the item for up to 90 days before putting it out on the shelves - if, in the matter that the loaner does not come to get it, and whilst doing, the Pawn Broker submits the information to the police (as required by law) so that the police can check for stolen merchandise (in some states).
The approximate value that you can pawn an item is based on what the Pawn Broker - in the matter that you don't come back for it - can get for it if the need to resell it arises. It basically works out as, he'll sell it back for about 60% of what it would be new (condition warrenting), and will take it from your for roughly 33% of said 60%. Although, there are cases where the price he will take it from you will be much lower.
The main point of a Pawn Shop is to loan out money for small items, and the customer will come back and repay the loan (with interest) for the item back. However, there are points where some people come in to just outright sell their item.
The approximate value that you can pawn an item is based on what the Pawn Broker - in the matter that you don't come back for it - can get for it if the need to resell it arises. It basically works out as, he'll sell it back for about 60% of what it would be new (condition warrenting), and will take it from your for roughly 33% of said 60%. Although, there are cases where the price he will take it from you will be much lower.
The main point of a Pawn Shop is to loan out money for small items, and the customer will come back and repay the loan (with interest) for the item back. However, there are points where some people come in to just outright sell their item.
$100 new
$60 can sell it back for
$20 taken for
You give a Pawn Broker at a Pawn Shop your watch that you bought for $100, he estimates (in his head) that he could sell it for $60 in the matter that you don't come back, so he assumes the watch has a collateral equal to $20, and thusly loans you $20 and holds the watch.
$60 can sell it back for
$20 taken for
You give a Pawn Broker at a Pawn Shop your watch that you bought for $100, he estimates (in his head) that he could sell it for $60 in the matter that you don't come back, so he assumes the watch has a collateral equal to $20, and thusly loans you $20 and holds the watch.
by oldspankie February 10, 2006