How does a pawn shop work?

Answer 1

Basically you take something you own to the pawn shop. They give you money for you're item and a ticket and also tell you a time limit. Now if you want to item back you can take the ticket back and pay the money and get it back, kind of like a loan. If you don't buy it back before the time limit runs out then they'll sell your item to get the money back.

Answer 2

Here is how a Pawn Shop works:

• People come into the shop to either sell or pawn their item.
• If it is anything of value to the people working there, they will either ask them to choose to sell or pawn it.
• The Pawn shop will then buy the item off of the customer.
• The Pawn shop then sells it to any willing person who comes into the shop for more money than they bought it for (for some items, the Pawn shop will refurbish it then sell it).
• Essentially pawn shops make loans to their customers against the value of the item pawned.
• Usually the pawn shop will set a time limit for the customer by which the customer has to redeem the pawned item. The cost to the customer is the repayment of the loan plus a premium. This is similar to the payment of interest on a regular loan.
• Items which are unredeemed by the customer or items which the customer cannot afford to redeem are forfeited and sold by the pawnbroker.

Answer 3

Pawn shops buy items from you in exchange for money and they also sell items and they offer loans for your items you give where they hold onto them and you have to pay and get your items back.

Answer 4

They give you money for your items. You have a short amount of time to buy them back. If you don't, they sell it to someone else and make a profit.