Sad Day at the Pawn Shop

on2wheels52 · on2wheels52's Garage

A customer redeemed four tickets for $1000. She had been paying $150/month storage (we're not supposed to call it intrest) since 2003. She was one of my better investments.
Jim

Porsche-O-Phile · Porsche-O-Phile's Garage

???

And?

I'm missing something here. . .

masraum · 09-08-2007, 05:33 PM

He won't be getting $150 a month any more. He's been making $1800 a year off of her for the past four years.

Steady income is better than a lump payout. Just like a mortgage, car loan, credit card, etc.... In the loaning business, the longer they pay, the better.

Jim, let me know if I'm off base on this.

Jim Bremner · 09-08-2007, 05:35 PM

hes gonna miss not making anymore income on her 1k loan, he ONLY made $6,200 on 1k

it cost alot of money being poor.

trekkor · 09-08-2007, 05:50 PM

Question:

How do you determine if the property coming in is stolen or not?

Thanks

KT

on2wheels52 · on2wheels52's Garage

JB, I think it came to $7200 but I'm not real good at math. One of her storage checks bounced but I was too embarassed to tell her so that may throw a wrench in the ROI.
KT, no way to tell by looking. I'm in a fairly small town so after twenty years I know who to turn away. As long as I ID the 'pawner' the onus is on them re ownership of the item. Having items confiscated by the police has not been a problem for me, it's not been difficult to be smarter than the johns are.
"I could teach a monkey how to do this job"
Jim

Jim Bremner · 09-08-2007, 06:44 PM

yes, your right...I deducted the original cost of money with out thinking

(drinking Sam Adams)

sammyg2 · 09-08-2007, 09:35 PM

Typically pawn shop owners do not have a reputation of being stand up guys. Your thoughts?

competentone · 09-09-2007, 12:59 AM

Quote:

Originally Posted by sammyg2

Typically pawn shop owners do not have a reputation of being stand up guys. Your thoughts?

I believe some call it "predatory lending" -- I think Congress is talking about stopping it!

Joeaksa · 09-09-2007, 02:07 AM

Quote:

Originally Posted by sammyg2

Typically pawn shop owners do not have a reputation of being stand up guys. Your thoughts?

People are not forced to go inside and pawn items, and are given the rules, regulations and lending rates up front.

I know that the people using a pawn shop may not be the "movers and shakers" of society, but in many cases this is the only way that they can make ends meet, so use it to get funds.

Have used pawn shops for many years in buying used things and never had any problems.

on2wheels52 · on2wheels52's Garage

Quote:

Originally Posted by sammyg2

Typically pawn shop owners do not have a reputation of being stand up guys. Your thoughts?

Definitely agree. It's been called the second oldest profession. Should you or someone you know be in such destitute circumstances as to need such a service you will probably find most are pretty cold. I'd like to think I still have some heart, still make some 'charity' loans, but you really need to ask my 'people' what kind of guy I am.
To get on Joe's track, my only advertising is the smallest Yellow Page ad I could get (and the sign out front). The transaction is between consenting adults, where else can you go to borrow $100 (or $20)? I'm sure the members of this board can't imagine being in such a position but there's a steady stream of people in my door who are.
Jim

pwd72s · 09-09-2007, 06:46 AM

Well Jim, if you ever get in one of these for $100? I'll pay $200.

74-911 · 09-09-2007, 07:12 AM

Quote:

Originally Posted by on2wheels52

The transaction is between consenting adults, where else can you go to borrow $100 (or $20)? I'm sure the members of this board can't imagine being in such a position but there's a steady stream of people in my door who are.
Jim

Agree. The area I live in is a relatively low income, blue collar, working class area. Towards the end of the month in particular, you see people unloading their kids bikes, lawnmowers, TV's etc. at the local pawn shops. These are mostly people needing a few bucks til payday. The first week of the month you will see people retrieving the stuff.

On the other hand, how does a person make a living when he has pawned all his tools (which the shops here seem to have an abundance of)?

Porsche-O-Phile · Porsche-O-Phile's Garage

So how does this work exactly? Someone comes in with some item and you buy it from them and give them "$X" for it. You then turn around and try to re-sell it or no?

What kind of tickets would be worth $1,000? And stay good for seven years?

I'm missing something here, I know it. My contact with pawn shops has been a bit limited - I bought a VCR at one years ago back in college and sold off a stereo I didn't use any more, but that's been about the extent of my contact.

lendaddy · 09-09-2007, 07:30 AM

Quote:

Originally Posted by Porsche-O-Phile

So how does this work exactly? Someone comes in with some item and you buy it from them and give them "$X" for it. You then turn around and try to re-sell it or no?

What kind of tickets would be worth $1,000? And stay good for seven years?

I'm missing something here, I know it. My contact with pawn shops has been a bit limited - I bought a VCR at one years ago back in college and sold off a stereo I didn't use any more, but that's been about the extent of my contact.

There are two ways it works.

"Take this and give me cash so I can buy some weed, thanks goodbye"

or

"Hold this as collateral for a loan and I'll pay you a storage fee every month until I repay you"

If in the second example you miss a "storage" payment he can sell it to recoup his cash outlay.

the · 09-09-2007, 07:34 AM

Like len says, it is either selling the goods to the pawnshop for a ridiculously low price, or a loan at a very, very, very (unbelievably) high interest rate.

The interest rate is called a "storage fee" to avoid usury laws.

Porsche-O-Phile · Porsche-O-Phile's Garage

Gotcha'. I thought that's how it worked (stuff being "in hock" or whatever) but I've never done it so I don't know the specifics of how it works.

Probably a tough business to be in - probaly lots of down-on-their-luck types and endless sob stories.

the · 09-09-2007, 07:37 AM

Quote:

Originally Posted by on2wheels52

JB, I think it came to $7200 but I'm not real good at math. One of her storage checks bounced but I was too embarassed to tell her so that may throw a wrench in the ROI.

What was the investment here? (i.e., how much was the loan to the woman/how much cash did she receive?)

the · 09-09-2007, 07:42 AM

Quote:

Originally Posted by Porsche-O-Phile

G

Probably a tough business to be in - probaly lots of down-on-their-luck types and endless sob stories.

I think it's only tough if those kind of things bother you, if you go into your local pawnshop down there in the LBC, you probably won't find the owner sitting there listening patiently to sob stories and getting all broken up about it.

It's a good business because unlike most, your investment is always fully secured. It's not like most service businesses, where you have to do work or lay out money, and then have some doubts about collection, collecting on an invoice, disputed charges, etc. And, the rate of return is very high. Hopefully, the original poster, who collected $7200 in total from this woman, will post the original amount given to the woman, so you'll see in number what I mean.

stomachmonkey · 09-09-2007, 07:56 AM

The original amount looked to be $1000.