How EXACTLY does a pawn broker work?

Question

Just so I know

Answer 1

You take something to him lets say a watch, he gives you a certain amount of money, not the full value of the watch. You get a certain amount of time to pay that money back to him plus interest, after which the watch is his.

Answer 2

A pawnbroker offers monetary loans in exchange for an item of value to the given pawn broker. The word pawn is derived from the Latin pignus, for pledge, and the items having been pawned to the broker are themselves called pledges or pawns, or simply the collateral.

A customer will bring in an item, whereby the pawnbroker assess the item for its condition and saleability, as well as the amount the customer may need for the item. If the pawnbroker is interested in the item, he will offer the customer an amount for it. The customer can either sell the item outright, or offer the item as collateral on a loan.

If an item is pawned for a loan, within a certain contractual period of time the pawner of an item may purchase it back for the amount of the loan plus some agreed upon amount for interest. The amount of time, and rate of interest, is governed by state law and the pawnbroker's policies. If the loan is not paid (or extended, if applicable) within the time period, the customer forfeits title of the item to the pawnbroker. Unlike other lenders, though, the pawnbroker does not report the defaulted loan on the customer's credit report – since the pawnbroker has title to (and physical possession of) the item; the pawnbroker may recoup the loan value through outright sale of the item at his place of business, called a pawnshop or pawn shop. The pawn shop also sells items that have been sold outright by customers to the pawnbroker.

The pawnbroker assumes the risk, though, that an item purchased was actually stolen property. In the interests of the community in not allowing a legitimate businessman to act as a fence, laws to protect both the pawnbroker and the community at large exist in some jurisdictions in the United States. These laws often require the pawnbroker to establish positive identification of the seller through photo identification (such as a drivers license or government-issued ID), as well as a holding period placed on an item purchased by a pawnbroker (to allow for local law enforcement authorities to track down stolen items).

Common items pawned by customers include jewelry, electronics (this includes hardware such as televisions and computers and software such as video games, as well as movies), musical instruments, firearms, and tools (both hand tools and power tools). Gold is a very popular item which is almost always purchased; even if the source (such as a piece of broken jewelry) has little value, the gold can still be sold in bulk to a bullion dealer or smelter for the value of the gold content.

Answer 3

you take items in to pawnbroker. They assess value (what they could realise on a sale) and lend you a percentage of the value. When you go back later and repay the loan they give you the goods back. If not they keep the goods and try tto sell them.

Answer 4

If you need some quick cash, you take an expensive item (usually jewellry) to the pawn broker.  He will then give you some cash - but no-where near what it's worth.

Now, you have a short amount of time (usually a couple of months) to buy the item back for a little bit more than you got originally.  If you don't, it's the pawn broker's to sell...

Answer 5

you take your pawn to him and he breaks it .....I think>>>