Should You Sell Or Should You Pawn? 3 Questions To Ask

Posted on: 18 March 2018

When you have a sudden financial shortfall, the fastest way to get cash is often a pawn shop. Though you have an expensive item in hand, you may be wondering whether you should pawn it or sell it at the shop. Both options can be viable depending on the item and your current situation. Here are three questions to ask yourself before you make a decision.

1. How Quickly Can You Pay the Money Back?

Pawning is usually best for items that you can get back right away. If you know that you aren't going to be able to pay the money back for some time, you run the risk of potentially losing your item or having to extend your payments. If you can pay the money back next week, on the other hand, there's little risk in pawning an item even if you know that you want it back. 

2. Do You Want the Item Back?

If something isn't sentimental (and the shop will give you the right price for it), there may be little value to holding onto it. This is especially true if it's an item that the pawn shop desires, such as tools. Consider the last time you used the item and whether you would purchase a replacement for it if you lost it. You may not need the item at all.

If you need to keep the item, you may want to consider just selling or pawning other items. Things can happen, such as additional emergencies, that could make it impossible for you to pay to get your item back. 

3. Is It Something They Can Sell?

This is a question you need to ask the pawn shop themselves. If this item isn't something that is easily sold by them, they are likely going, to be honest with you: they can't give you much for it. After all, they need to make a profit. More obscure items, such as art or niche antiques, simply aren't going to get you a lot if you're going to sell them. You'd be better off pawning them now, reclaiming them, and selling them properly at a later date.

Often the pawn shop itself will be able to advise you on the right course of action. They can tell you whether your item would be worth more if you sold it somewhere else, or whether you'd be better off seeing a different loan service provider. Contact a company like Rocky  Mountain Pawn for more information and assistance.