The Benefits of Pawn Shops vs. eBay or Craigslist
If you are thinking about how to get the best value for money from your possessions, you may want to consider the benefits of pawn shops vs. eBay or Craigslist. All three are popular avenues for vending valuable items such as jewelry or designer handbags. But what sets them apart from each other? VerdeLoans, an online financial service connecting the people of Los Angeles with the best value pawn loans for their high-ticket items, sheds some light on the matter.
What’s The Best Way to Sell Your Items?
If you are weighing your local pawn shop against online marketplaces such as eBay or Craigslist, your initial decision may be that selling stuff online is better. After all, selling locally means you are limited in the price you can get for it. A pawn shop is a small business that exists to turn a profit, and may not always pay top dollar for a piece of jewelry they intend to re-sell. Sites like eBay offer goods nationally, even internationally. You can sell niche items that only have value to some, such as rare video games or collectables.
However, consider the potential for false economy. Buyers and sellers on Craigslist are more or less anonymous, and the potential to be scammed or worse by a potential buyer is higher than in the event of a pawn shop. eBay has systems in place to prevent the more obvious scams, and user profiles to ensure that you at least have some idea of who you’re selling to and if they have been reliable in the past. But they too are prone to bad actors. Particularly with the onset of the pandemic, eBay sellers have faced many scams. Even when you aren’t getting ripped off, eBay and similar services come with many caveats: shipping fees, final value fees, and the like. Managing your account, especially if you’re selling 50 items or more, can become a full-time job. You have to list your items, establish a minimum sale price, keep track of items sold and to who, ship those items, review buyers, and more. You may find that with all the labor of managing an eBay account, you aren’t actually coming out ahead.
The most reliable way to get money for your items online is actually to pawn an item through VerdeLoans. Our couriers will pick up an item you photograph and submit via our webform, so that we can appraise it and one of the pawnbrokers we work with can make a good offer. It’s fast and free. We will do all of the legwork: you don’t even have to leave your home. All of the paperwork is done online.
Do You Get More If You Sell or Pawn?
While this can vary from situation to situation, there are benefits to pawning your goods over selling them. Chief among them, you can eventually get your family heirloom back once you pay back the pawn loan. Pawn shops take on less risk when they issue a pawn loan compared to purchasing goods. They already have someone who will pay to receive the item back, and in the meantime they can collect interest on the loan. Compare this to selling an item, where the pawn shop is taking on the risk of not being able to find a buyer. This risk means that it is typically more advantageous to pawn rather than sell to a pawn shop. While the potential to receive a higher price on Craigslist or eBay is there, this reward has to be measured against the risk of being scammed or worse.
Why Pawn Shops Are a Better Alternative to Classifieds
Local vs. Internet: a pawn shop is a local business that employs your neighbors and provides essential financial services to your community. An eBay user could be in your neighborhood, but could equally be on the other side of the planet. Craigslist does have the advantage of being relatively local, but users are anonymous and often entirely unaccountable.
Accountability: if an eBay user scams you, there is often little that can be done to set things right. If someone on Craigslist takes advantage of you, often the only thing to do is let your social media circle know and hopefully name and shame the local individual.
Professional financial service: when you use a pawn shop’s services, you know you’re dealing with a financial service that is bound by federal law to act with transparency and integrity. You have no such assurances when dealing with those responding to a classified Craigslist ad or an eBay listing.
Versatility: a pawn shop provides multiple options for your Kate Spade bag or diamond ring. If you don’t care about getting the item back, you can sell it. However, if you need money quickly but would like the item back eventually, you can pawn it and pay down the loan over a period of time. VerdeLoans can hold items for up to 12 months.
Find out how you can turn unused jewelry or luxury handbags into cash for credit card debt, student loans, bills, or small business capital. Submit your valuable items for consideration on VerdeLoans’ easy webform today. Pawn loans start from as little as $5 and can reach as much as $500,000 for the right item.