If you’ve ever been to a pawnshop in Melbourne for a loan or to sell some of your valuables, then you are familiar with how Pawnbrokers work. They offer loans without performing any credit checks and accept your valuables as collateral. If you ever find yourself in need of quick cash you can always be sure that your local pawnshop will be there to help.
Pawnshops aren’t just good for pawning valuables for cash or selling unwanted items, they are also a great place to buy second-hand goods for low prices. However, not all pawnshops are the same, some are less reputable than others. If you wan to use the services of a pawn shop Melbourne, here are some great tips to help you find a reputable pawnshop in your area.
Identifying reputable Melbourne pawn shops
- How long has the pawnshop been in business?
It goes without saying that a pawn shop Melbourne that has been operating for a lot of years would be financially strong to offer good deals for your valuables and has had the time to build its reputation.
- Do they have the required licenses?
Australian pawnshops are required to follow certain regulations. Pawn shops are required to have valid operational licenses. Because pawn shops operate as second-hand dealers, they also need the appropriate license that allows them to do so.
A pawnbroker that has these licenses will most likely have the appropriate insurance to cover your pawned items. The absence of these licenses prove that the pawnshops are not operating lawfully and there is no way if knowing how protected your pawned items will be.
How should reputable pawn shops operate?
There are three transactions that you can perform at a reputable pawn shop:
- You can pawn valuable items for the value of the cash loan.
- You can sell second-hand goods that are in good condition.
- You can buy good quality second-hand goods at incredibly low prices.
When you take out a pawn loan, you have to pay the loan back. If you fail to repay the loan plus the interest charged then the pawnbroker will have to resell the item to recover the money loaned and make some profit for them to stay in business.
Find out what the value your items are before you pawn them
Make sure you find as much information as you can about the value of your items before you pawn or am them. This is how you’ll know if the pawnbroker has updated information on the items you plan to pawn, sell or buy.
Look at customer reviews
Good customers will have customers that are happy and saying good thing to say about the pawn shop. Take the time to read the reviews and find out what is good about specific pawn shops. You could also ask recommendations from friends and family who have used these pawn shops.
The bottom line
Locate a reputable pawnshop in your area so you don’t have to travel for long to do your transactions.
A pawn shop with polite staff who are always willing to answer your questions truthfully. They should be able to explain the pawn process clearly. Any pawn tickets issued should be clearly written and have all the information that is important so that there is no confusion.
If you are not happy either the service you are getting from a pawnshop, you can always walk away.
