With the holidays right around the corner, you may be purging your home of all your unwanted possessions to make room for the gifts you will receive and the items you purchase for the New Year. Before you know it, that pile of unwanted items has become a mountain in front of your door. Now, you need to decide what to do with these things. Do you take them to a pawn shop or a consignment store? Is there really a difference between these two shops? Yes, there is, and their differences could change your mind about which place you take your unwanted belongings.
The three main differences between pawn shops and consignment stores are:
Who Retains Ownership Over the Item
The first difference between pawn shops and consignment stores is who takes ownership of the item. Pawn shops are designed to take in items as collateral, offering people immediate cash for belongings that have value but that they do not want to necessarily part with forever. You retain ownership of the item unless you fail to meet the agreed-upon loan terms. At that point, the pawn shop will take ownership of the belongings and has the right to sell them to the public.
In contrast, consignment shops receive items from people who do not have an urgent need for cash and assume ownership of the belongings right away. They will try to sell the item to the public as quickly as possible and give you a share of the commission. However, if the item doesn’t sell, you can return to the shop and reclaim the belongings.
When You Get Paid
Another difference between pawn shops and consignment stores is the time when you get paid for your items. When you bring unwanted belongings into a pawn shop, you will receive cash immediately according to the short-term loan you and the shop owner agree upon. You are expected to pay this cash back in full to pick up your items. If you do not pay back the loan, the shop takes ownership of the items and has the right to sell them to the public to gain back the loan they gave you.
With consignment stores, you are not paid right away. In fact, there’s a good chance that you will never be paid for your unwanted items because if the shop can’t sell your belongings, they will not pay you. If your items don’t sell, you can pick them up and try to sell them another way, but this takes a lot of time and energy. You could skip the hassle by bringing your items into a pawn shop instead.
When the Shop Receives Money
Likely, when the shop receives money for the sale of your item is not high on your list of determining factors of where you should take your unwanted items for cash. Still, we thought we would cover the topic anyway since we’re discussing the differences between pawn shops and consignment stores. Pawn shops earn money from the interest charged on pawn loans and the sale of items that were held as collateral. Consignment stores, on the other hand, receive payment when your item sells. This amount is a percentage of the item’s sale price — the rest of the amount goes to you, the owner of the item.
Ready to Sell Your Unwanted Items? Stop By The Jewelers & Loan Co.
The Jewelers & Loan Co. is one of the most highly recognized pawn shops near Boston, MA. If you need cash quickly, there’s no better place to get a fair price for your items. Whether you’re hoping to pawn your jewelry or pawn gold for cash, we’ll take care of your items until you’re ready to pick them up. Come by our shop or contact us today for more information about how we can help you.