So I recently went to a pawn shop hoping to sell some old stuff. OMG! They ridiculously lowballed me. Upon hearing the offers, I was speechless, and walked around the store (fairly big store) to check out their prices. OMG! Their prices were stratospherically high. For examples:

- Some of their few year-old TVs were asking for hundreds of dollars. A several year-old Quasar CRT tube was commanding $300. Nowadays, you can buy a brand new LCD for hundreds of dollars, not some very old tubes.

- They had some iPods that looked like they've been sandpapered. They were so scratched that I wouldn't even take 'em for free. Yet they were asking $199 for them. Upon seeing such a price, I asked them what they'd give me for a week-old Zune. They punched in the calculator and said, "$55". Again, speechless! I can sell it on CL for $150. They would probably re-sell it for $250+ had I sold to them.

- There are many other ridiculously high-priced items too.

I've never had much experience with pawn shops, but now I hate them so much. They are a bunch of thieves who rip off consumers (mostly poor and uninformed). They make loans with high fees, buy stuff with ridiculously low prices, then re-sell for ridiculously high prices. I hope God will strike upon them with the utmost vengeance via a lightning that will burn the store to the ground.

I saw quite a few people who were browsing and looking to buy in their shop. Anyone who would buy stuff from them absolutely must not have any brains or logical sense. One can go to a retail store and buy brand new stuff for the same prices or cheaper when on sale. Why would anyone pay such ridiculous prices for very old and used stuff?!! That is my rant for today.

Do you hate pawnshops? Any experiences?

 

Buy low? Sell high?

You do realize that these places exist for quick cash, right?

 

Yes, but I didn't realize the prices (both buy-in and sell-out) are so RIDICULOUS. I can understand that someone can sell to them for quick cash, but how can ANYONE go there to buy their stuff at such ridiculous prices? Why not go to a retail store that have on-sale prices similar to the pawn shop's but for brand new items with new technologies too? Why buy a 5 year-old tube TV for hundreds of dollars? Why buy a totally scratched iPod for $200 when a brand new one can be had for less?

 

pawn shops take huge risks when dealing with low lifes. u do know how pawn shops work right? people go there asking for a loan. they put up some collateral. the amount of money they get is the loan to value multiplier times the the market value amount. if the person wants their stuff back, they can always buy it back + premium. but usually, the lowlife defaults and their stuff is just permanately there for sale.

the LTV is usually 25% of the market value if even that. basically if u have $100 dollar item, u will get $25 from the pawn shop. and the pawn shop is stuck with a depreciating item.

 

I actually work for someone that owns a few pawnshops. And yes, they are a huge rip-off. But you know what, if you're not smart enough to realize that before you even walk in there, let alone before you accept any terms they lay out, then I almost feel like you deserve to be taken advantage of. And as 8D said, the majority of people that go to pawn shops are looking for quick money, without the need for a credit check. I see it as a shining example of the rich get richer and the poor get poorer. . .all legally, somehow.

 

I've gotten about 1/2-off-new on some metric Craftsman 3/8" drive sockets from a local pawn shop. Felt like multiple win-wins to me.

 

Ok, let's forget about the quick loans and cash, but how can anyone go there to buy stuff when the prices are so ridiculously high?

I was hoping to sell some used stuff, mostly electronics and tools that are still in very good condition because I was curious about pawn shops, but oh boy! The lowballs were ridiculous! CL and Ebay, here I come!

 

Maybe some stuff are considered cheap, but the stuff, mostly electronics, I saw were ridiculously priced, such as a very used and scratched Passport radar detector for $250.

 

Pawn shops are not the places to find deals. They're for people who need cash quick for whatever reason (gambling, addiction, hard times, etc.). If you've ever been to Atlantic City you'd know why there is an abundance of them.

 

Ya I agree with OP, good friend of mine owns a pawn shop, and its buy low sell high. ROFL he sometimes has items that retail and above and when I mention it to him, he tells me to go get it for retail cause some idiot will come in and pay above retail for a used item.