Pawning vs. Selling: What's the Difference?

You’ve likely passed by pawn shops in Daytona Beach many times, and maybe you’ve wondered what exactly their purpose is. There are a lot of people who have pawned personal items instead of selling them. 

What’s the difference? When would someone choose to pawn something at a pawn shop instead of selling it?

The Purpose of Pawn Shops in Daytona Beach

The main difference between selling and pawning is that with selling, once you are given money in exchange for an item, that item no longer belongs to you. 

When you pawn an item, you are given money in exchange for that item, and the pawn shop holds onto it. You will have a specific date by which you must repay the money, plus some extra, to the pawn shop. 

If you make the agreed-upon payment by the due date, you will get the pawned item back. However, if you do not repay the money and the fees before the due date, the pawn shop retains your item. 

Many people pawn items when they need cash but also want their items back later. The concept of pawning is similar to that of a short-term loan.

What Items Do People Pawn?

When a customer comes in to pawn an item, a legally binding agreement is drawn up that specifies the terms of the transaction, including:

• A description of the item
• The agreed-upon amount of money “loaned” to the customer
• The amount of money that must be paid back to the pawn shop 
• The date by which it must be repaid

Pawn shops accept a wide variety of items, including jewelry and gold, vehicles and boats, musical instruments, and coins. Some pawn shops will also accept collectibles and will even buy gift cards.

What do the shops do with these items? They sell them! The next time you’re looking for a unique gift or rare item, head to a Daytona Beach pawn shop.