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How Pawn Shops Make Money
- Pawn shops primarily make money by lending money with interest and selling unredeemed items.
- They offer loans to customers who provide valuable items as collateral.
- If borrowers fail to repay loans, pawn shops gain ownership and can sell pledged items.
- Pawn shops also generate income by selling items directly to the public.
Consumer Protection Laws
- New laws require pawn shops to clearly inform customers about loan terms on paper, including the loan amount and how it is determined.
Security and Safety Tips
- Pawn shops use a nationwide online database to check items for stolen property.
- Law enforcement can instantly check pawn shop inventory against stolen property reports.
- When buying items, thoroughly check equipment before purchasing.
- Do not rely on online shopping. Pawn shops get items from both pirates and normal users.
- Be cautious when buying guns.
- Research firearms, prices, and your needs first. Pawn shops offer a variety of guns at various prices. Their assistance can help new gun owners make informed purchases.