What Will Get Me More Cash: Selling or Pawning?

What Will Get Me More Cash: Selling or Pawning?

If you need cash right away, you might be wondering what your best option is. If a bank or personal loan is out of the question, and you have an item of value on hand, your next best choice is your local pawn shop. But that then begs the question: which will get you the most money: selling or pawning?

Well, wonder no longer: we are here to help you choose the best option for your needs. While the option that is best for you and your family depends entirely on your pawn shop community in the circumstances, we can help you decide which is best for your needs. Keep reading to learn more about the pros and cons of selling when you need some quick cash.

Although selling and pawning may seem like similar things, they are actually very different. Your needs will determine which is the best option for you. Before we review the pros and cons of selling and pawning, we will describe some of the differences between selling and pawning. Both involve giving something up in exchange for cash. When you sell, you give up your item in exchange for money. When you pawn, you will get your item back only if you repay your loan within the terms set in your contract.


At first glance, it might seem like pawning is the better option because you can reclaim your item and get the money you need. However, if you look more closely, you may discover that there are other significant factors to consider.

First, keep in mind that although almost anything can be pawned, and that there are certain items that nearly every pawn shop will buy, not every shop will be interested in every single item that comes through their doors. Your item may not be in demand, and you might have to visit multiple shops before finding one that is interested in your item.

Also, pawning does not necessarily guarantee a big loan. Your local pawn shop must estimate the value of your item and grant you a loan against a percentage of the total. The shop must think of every item regarding resale value. If you do not return to reclaim your item and pay its interest, reselling the object then becomes their problem, and they will need to make sure they can make a profit on it to stay in business.

Pros of pawning

A significant benefit of pawning is that you can get your item back if you repay your loan on time. If you pawned something with sentimental value, this might be a huge draw. Another significant benefit is that pawning will not affect your credit score, and you will not be subject to a credit check. Pawn shops are only concerned with the value of the item you offer when they give you a loan, not your credit history. And if you happen to miss payments or default on your loan, your credit score will not be affected.

Finally, pawning is a quick process. Applying for a loan at a bank can take days or even weeks, and there is no guarantee that your financial institution will come through for you. At a pawn shop, you will know right away if they can grant you the loan you need.

Cons of pawning

Although pawning guarantees you a chance to get your item back, your local pawn shop cannot wait for very long. You will be kept to a strict schedule of payments, which means that you will have only a set period of time to repay your loan in full before losing your item. In some cases, you may have the option of renewing the loan, but this will tack on more fees and interest, making it financially unfeasible to reclaim your item.

Also, even if you have an extremely valuable item to pawn, you will only be able to borrow a percentage of its worth. Again, depending on your needs, a minor portion of your item’s value may not be enough. It is up to you to know how much you need to make the transaction worthwhile.


Although pawn stores are known for quick loans that involve collateral, you can just as easily sell items to your local pawn shop.

Pros of selling

The most attractive benefit of selling is that you may get a much higher value than if you choose to pawn compared to pawning. This is because the shop can make it available for sale right away, rather than having to store it for the duration of the loan. However, if you have any interest in reclaiming your item, selling may not be the way to go.

Selling may be the better choice if you need some quick cash and you don’t want to go through the restrictions and commitment of a loan. You will not have to repay anything, and the money you receive is yours.

An additional advantage of selling may be that, if the item has no sentimental value to you, you can get rid of things you do not need and get some cash in hand.

Cons of selling

All of that notwithstanding, selling an item means you are relinquishing ownership forever. You’ll never get the item back. With pawning, on the other hand, you can still get your item back as long as you repay the loan, along with its fees and interest.

Remember, giving up ownership means that you cannot rely on taking out a loan from your pawn shop against the value of the item in the future.

If you are in need of quick cash, take all of these factors into consideration. When you decide which avenue is best for you, visit us so we can make you a fair offer and get you the money you need. At Central Mega Pawn in Ontario Ca we offer reasonable prices and are happy to walk you through the process of pawning or selling your items. With us, you can pawn or sell your items without worry.

5 Tips on Negotiating at a Pawn Shop

5 Tips on Negotiating at a Pawn Shop

If you are interested in buying or selling at a pawn shop but are unsure where to begin or are feeling intimidated by the idea of haggling and negotiating, we can help. As longtime members of the pawn shop community in the Ontario Ca area we have years of experience to draw on to guide you to success when it comes to negotiating with pawn shops.

How to negotiate when selling

First, understand the difference between selling and pawning items at a pawn shop. To pawn an object is essentially to take out a short-term loan against the value of that item. When your pawnbroker makes an offer on your item, you have a set number of days to repay and reclaim your item. If you do not pay, the shop can sell your item. There is usually not much room for negotiation when it comes to loans.

On the other hand, selling to a pawn shop is just that – you receive cash for your item with no agreement that you will reclaim your item, and without needing to repay anything. There is plenty of room for negotiation.

Before you visit the shop, do the following:

Prepare your item – before you visit the shop, make sure that whatever you’re selling is in the best condition possible. Clean it up, attach and adjust any accessories or strings and collect any paperwork that goes with your item.

Do your researchknow the value of your item. Even if you think you have a good idea, look at completed sales on online auctions, and see what people are asking (and receiving) for similar items on Craigslist. You may be surprised.

Then, when you visit your local pawn shop, you can begin negotiations with the following in mind:

Have realistic expectations

Do not get offended if your pawnbroker can only offer around 50% of the value of your item. A pawn shop cannot purchase goods at full value because they will need to make a profit on everything they have on hand. They cannot take into account any item’s sentimental value, history, collectability.

Listen more than you speak

Unless they ask directly, your pawnbroker does not need (or want) to know where you found your item, how long you’ve had it, or how much you originally paid for it. In fact, disclosing too much information like this may only hurt you. What you’re really saying by sharing information like this is either that the item doesn’t mean much to you and that you aren’t really invested in how much you get for it, or that you are emotionally attached to it and are expecting to get an unrealistic price.

Additionally, although you’ve done your research beforehand and have a good idea of your item’s value, do not disclose it to your pawnbroker. It is up to them to determine that for themselves, as they must take into account the likelihood that it will sell.

Haggle gently

Let the pawn shop make the first offer. Even if they begin by asking you how much you want for it, insist on them going first. After the shop makes an offer, it’s acceptable and expected to ask for a higher price. However, don’t overdo it or you might end negotiations before they really begin. At most, you might get closer to 60% of the value of your item. If your pawnbroker can get close to that number, take the offer. But, if they are dead set on 50%, that may be the maximum. It’s okay to be confident and assertive but know when to back down. You can always decide to walk away and try again at another pawn shop.

How to negotiate when buying

As a bonus, here are 4 tips for negotiating when purchasing from a pawn shop. Buying at a pawn shop is a slightly different process. You hold more power when you are buying, but you should still do your due diligence and negotiate.

Do your research

Even when you’re on the other side of the transaction, you should still do your research on the type of item you’re interested in, or at least be knowledgeable about how much it usually goes for. Most pawnbrokers price their items fairly, but it is still a chance for negotiation.

Inspect the item

In most pawn shops, all sales are final, so you should ensure that the item is in excellent condition. Make sure that moving parts do so efficiently and that all the vital parts of the object are functional.

Make your offer and begin negotiating

A good starting point is around 80% of the asking price. On some items, especially things that they have a lot of stock of, you can also ask what the lowest price is they will accept and offer $5 – $10 less. They will come back with a counter offer, which you can take, or you can try to whittle down even further.

Pay with cash whenever possible

If you visit your local pawnshop ready to buy with cash, you’ll have better results at negotiating than if you pay with credit or debit. There are even still many pawn shops out there that operate on a cash only, or mostly cash basis. Almost all, however, will be interested in having plenty of money on hand to buy items and to make loans, i.e., to keep their business running smoothly.

Also, paying with cash will help you stick to your budget and makes good financial sense.

On either side of the equation of buying or selling, using these tips can make negotiation simple and maybe even enjoyable. If you have a positive attitude, are respectful of your pawnbroker and understand the fact that they are a business, not a charity, you’ll come out happy and ahead. You will either get some extra cash by selling something you no longer need, or you will get a reasonable price for something you wanted and will use. Visit our shop or call us at (909) 627-9622 today and see just how easy it can be to negotiate with a pawn shop.