The pawnshop business has been growing lately all across the US. Whether it is the main New York City or the town of Baltimore Maryland.
The main question that people ask about pawn shops is that whether they are legit or not or do they run a shady business? These are important questions to ask before you decide to seek the services of a pawn shop.
Remember, you cannot just purchase every other item on sale from a pawn shop. There are certain things you must never buy from here.
Stay tuned to find out what these items are.
What is a pawn shop?
A pawn shop is a small-scale business that lends small loans to people by keeping a small valuable item as collateral. The person whole receives the loan must bring a valuable item and give it to the pawnshop, which will be kept as collateral until the loan amount is paid back.
The valuable items that can be kept as collateral include jewellery, expensive stones, electronics, cameras, guitars, etc. There are certain pawn shops that only keep a specific group of items as collateral.
All in all, a pawn shop is a place that offers collateral loans to people.
The misconception about pawn shops
There are multiple rumours regarding pawn shops that float in the market. Many of these rumours are not true, in fact, are myths.
Pawnshops are a legit business that is regulated by both the federal and state government. Around fourteen federal regulation agencies look after these pawnshops. They must operate on strict state and local laws set in place.
8 Things You Should Definitely Not Buy from A Pawnshop
Even though you can practically buy anything from a pawn shop since it is sort of a business that offers all types of collateral but, you still must avoid purchasing certain things. Even if a deal seems worthwhile, you must proceed carefully.
In general, the following are some of the items you would be better off not buying from a pawnshop:
1. Tablets & Laptops
You should not buy laptops, tablets, and cell phones from a pawn shop. Or at least be very careful even if you are planning to buy them. These items can potentially be stolen or blacklisted. Even though they would function normally, but do you really wish to waste money on stolen items?
At the same time, many devices need registration before their use to prevent theft or loss of data. So, if you end up with a stolen item, the owner can easily report it and you will not be able to use the device.
2. DVD Players
Trust us, you are better off not buying the DVD players from a pawnshop. These players can have multiple problems if not checked properly. All in all, you must not buy any tech-based product from a pawn shop. It is a huge gamble; it may work or maybe complete garbage. It is only prudent not to invest in a gamble.
3. Cell Phones
Cell phones are another item that must not be purchased from pawnshops. In fact, you should stay away from all tech-based items that are sold at pawnshops. Otherwise, you will be putting your money at risk, that too intentionally.
Many pawnshops do not even take cell phones as collateral. SA o, if a pawn shop is marketing cell phones, it is a red flag. This is mainly due to the fact that cell phones can potentially be stolen and the original owners can get them blocked. So, they are no good than pieces of scraps.
4. Cleaning Appliances
Another thing you should not buy from a pawnshop is a vacuum cleaner. In addition to being defective, it may not be hygienic. You can never find out where the device was previously used and you may be intentionally inviting infections into your home. It is in your best interest to buy brand new vacuum cleaners from the proper provider.
5. TV’s, Cameras & Other Electronics
Asides from the electronics mentioned in the previous section, I do not advise you to purchase any other electronic product at pawn shops. You are likely going to be scammed. Electronics such as TV’s, Cameras, GPS navigation systems, home theatres, is a no-go area at pawn shops. Unless you are a great technician and can make sure that the item is 100 percent functional.
6. Jewellery Pieces
Jewellery items are the most common item that you will find on sale at any pawn shop. In fact, many pawn shops display expensive jewellery pieces in their display window which includes wedding rings and unwanted jewellery items. It is not smart to invest in any of these pieces
