How do pawn shops in Loganville, GA really make money?
If you’re low on funds and need money quickly, you might think that the pawn shops in Loganville, GA, should be one of your first stops. Take a deep breath and wait before you take the leap. There are better resources in your area for short-term financing, and there are good reasons to avoid pawning your belongings. Here are the top 5 biggest secrets about pawn shops.
1. Getting fair value
Pawn shops offer you short-term financing and they secure the funds with your property, but they don’t want to take a loss in the event that you default. Pawn shops make sure they’re going to make money by offering you a small percentage of what your items are worth. These usually range from 50 to 65 percent of fair market value, and if you miss a payment, your property is gone forever.
2. Finance and storage fees
You have to carefully read your agreements to make certain you know how much you’ll invest over the life of your refinancing plan. Pay special attention to whether or not your financial agreement ends on default. Will taking possession of your property and readying it for sale end the agreement, or will a pawn shop continue to charge you service fees until you complete your loan?
3. Some pawn shops are illegal
With dozens of pawn shops in Georgia, you’d be surprised at how many are operating without the credentials they need. Not only does this impact the way they charge interest and fees, but also whether or not your items will be securely stored while you pay off your financing. Without the proper licensing, a pawn shop may not be able to get the insurance needed to cover theft or damage to customer property.
4. Stolen merchandise
If you bring in an item similar to something taken during a robbery, you could find yourself on the radar. Not every piece of property has serial numbers. In the worst case scenario, police might show up at your door asking for proof you really owned what you pawned.
5. Pawning your car
For many people, the only property they have of real value is also the means by which they get to work or take their children to school or the doctor. Reputable pawn shops in Loganville, GA, take jewelry, electronics, photography equipment and musical instruments, but they do not take cars on trade. However, there’s a different type of lending available to those who own their own cars.
A title pawn in Georgia, sometimes referred to as a title loan in other states, is short-term financing secured by your car’s title. Unlike a typical pawn shop scenario, you don’t leave your property behind. Instead, you can stop in, fill out paperwork and be back on the road in minutes with all of the money you need.
What do people use title pawns for?
Unfortunately, Georgia is in a terrible financial spot. Nearly 12 percent of residents don’t even have a bank account, and sixty percent have no savings to speak of. The state faces obstacles when it comes to banking and financial services.
Most people who assume they qualify for short-term loans from banks are surprised to find out the standards have been raised to an unreasonable level. Alternatives have been created to fill in those gaps. It’s up to individuals to evaluate their options and go with the plans providing the most money at the lowest expense versus those putting your property at risk.
Stay away from pawn shops in Loganville, GA. Ask Title Tree whether you qualify for an auto pawn.