Quote:
Originally Posted by Sidney Crosby's Hat
How much would you be able to pick it back up for? Double what you got for it? More? Legit question, I have no clue.
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Quote:
Originally Posted by Boshi
Double? No, no.. no.. lulz. They just charge a fee for holding it essentially--when you come back you pay what they gave you initially plus a small fee. They make their money on the ppl who accept crap cash for quality items with no way of coming back for it.
Unless you go over the contract limit.. then they set their own price on it and you'd be stuck paying whatever they say.
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My buddy owned a pawn shop that he sold about ten years ago. According to him, the preferred ratio of people who come back to claim their items to the people who never come back is 1:1. Any big ticket item they hope to have an expired contract on, while the smaller stuff they want the interest on.
Their loans were either one week or one month in term, which you set out at the beginning. Interest was charged based on the full term of the contract, so if you got a month loan, and repaid the amount after two weeks, you still paid one month's interest.
Their interest they charged on a one month contract was 4.99% This may not seem like much, but it works out to a 59.88% annual rate. The legal maximum in Canada is 60%. They also charged application fees, that did not form part of the interest.
Not everything is pawned, as some stuff is straight up sold to them. Every now and then guys would come in during the winter, sell their jacket and take the money across the parking lot to the liquor store.