When you think of the term ‘Pawn Shop’ what comes to mind? Unfortunately, there can be negative ideas about the business because of how they are portrayed in movies or the few bad apples that make the other honest pawn shops look bad. There are many myths about the pawnshop industry, however there are three we wanted you to consider the next time you’re considering working with a Pawn Shop.

Myth #1: Pawn Shops Sell Stolen Items

One of the most common myths that almost everyone believes is that pawn shops sell stolen merchandise. Pawnbrokers have different ways to find out if the item they just bought was stolen or legitimate. One of the most significant ways that a pawnbroker knows whether the item is a missing Item or not is through the police. Since police get hundreds of cases that include stolen merchandise, they go to the first place a fugitive would think of selling their item to, and that’s a pawnshop. Now legally, the pawnbroker will have to take a couple of steps to make sure that they have enough evidence for the police if one of the items does turn up stolen. 

Myth #2: Pawn Shops Try Hard to Rip Off Their Customers

Pawn shops get a large part of their profit by buying used items and selling them in their shop. They are not going to buy the items at the exact price of the item’s worth. Instead, they will do their best to give you the best price possible but still at a price they can make a profit from. If, however, you do feel like you aren’t getting a fair price for the item you are trying to sell at a pawn shop, you should know how to negotiate in order to get the price you want, whether you are buying or selling. 

Just like any other business, pawn shops must have a good reputation in order to make money and stay in business. Getting bad reviews and testimonials from ripping people off doesn’t exactly make people want to come through the doors.

Myth #3: Pawn Shops Charge Very High-Interest Rates on Loans

Many Florida pawn shops provide secured loans which means that there is collateral attached to the loan. For example, an individual will bring in electronics, jewelry, antiques, power tools, and more that can act as collateral for the loan.

No matter the industry, every lender will charge interest based on the amount of the loan, the level of risk they are assuming, and the length of the agreement. When you get a loan from a pawn shop, it’s usually for a smaller amount of money and the loan lasts for a short period of time. When you compare a pawnbroker’s fees to those of a payday lender or the amount you may be charged for an account overdraw, you will likely find the rates are quite reasonable.

Alamo Pawn Shop, located on Transmitter Road, opened its doors in 1996 when the original owner came here from East Texas and fell in love with the beautiful beaches. The current owner was born and raised right here in Panama City, Florida.

We have a great team of employees that work together to ensure that our customers get the very best service possible. We want to make sure that you get the money you need fast, and that you get the best deal on your purchase. Alamo is one of the cleanest and well-organized pawn shops in Panama City.