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People use pawn shops as ATMs in hard times
One shop owner says loans up 20-25%
Wednesday, February 25, 2009
Nigel King of Kettering looks through the collection of guitars Monday, Feb. 23, at Don's Pawn Shop in Dayton. King says it is the best place to get deals on classic guitars. Pawn shops say they are seeing new customers seeking loans and looking for bargains. Staff photo by Teesha McClamDAYTON — With the economy struggling, local pawn shop owners say they're seeing new faces in their stores, whether it's a person who lost a job or someone trying to stretch their money a little further.
"We had a lady come in yesterday who borrowed $1,500 on two jewelry items, and she said she needed to make the payment on her Mercedes," said Ric Blum, vice president of Ohio Loan Co. on Salem Avenue. "I hear people frequently say they need to make their mortgage payment, and they're looking for loans in excess of $1,000."
Pawn shops deal both in sales and collateral loans, and several local shops said this week that business has been solid on both fronts in recent months. Pat Tateman, owner of Lone Star Pawn on North Dixie Drive, said loans are up about 20 percent to 25 percent, while sales are rising as people look for bargains on jewelry, electronics, power tools, musical instruments and other items.
"We have seen a lot more faces, with unemployment the way it is," Tateman said. "And some other people really want that new TV, but it costs $800. They say, 'Well, we can go to the pawn shop and get it with a warranty for $450.' "
Nigel King of Kettering said he got a loan against his $800 guitar, and he'll get it back from Don's Pawn on East Third Street when he gets his tax refund. He was checking out other guitars at Don's on Monday, Feb. 23.
"Some have the idea in their head that only cheap people go here, which is wrong — everyone likes a good deal," King said.
Contact this reporter at (937) 225-2278 or jkelley@Dayton
DailyNews.com.
About pawn shops
Buy and sell: They're secondhand stores for everything from $4 DVDs to $4,000 jewels. You must be 18 with photo ID to sell.
Get a loan: They'll loan you money, holding your valuable item as collateral. The state caps interest at 5 percent per month. If you don't pay by a specified time (often 90 days), the item goes up for sale.
How much? A general estimate is that a pawnbroker will loan about 50 percent of what he thinks he can sell an item for.
Is it safe? Dayton police Detective Gary Pilgrim, who has worked with local pawn shops for eight years, said a few shops give the industry a bad name, but "most are run by good businessmen."
Comments
By clif
March 4, 2009 12:38 PM | Link to this
i own a pawnshop in alabama, if the police won’t do anything about stolen stuff at the pawnshop the cops are the ones to blame, i would never want to pawn something stolen if i can help it,on principle, plus the police here confiscate stolen stuff and return it to the owners for free. pawning can become expensive if you just pay the interest, of course, it is designed to be a short term loan, not a long drawn out loan.
By FreshMeatz
February 26, 2009 1:27 AM | Link to this
P.S. DP&L has been that way for 20 years and probably always will be that way with the law as it is, contact your state congressmen and senators. 17 years ago I owed them a bill for 701.98 ,to this freaking day even after a bankruptcy they still resell off the debt to collection agents and try to report it, mind you this is 17 years ago! I don’t even reside in Dayton or even Ohio anymore, haven’t for 15 years. DOWN with privatized bureaucratic corporate crooks like DP&L
By FreshMeatz
February 26, 2009 1:23 AM | Link to this
Dayton Pawn shops used to rock, real good deals and you could haggle allot on price. I have used pawn shops mostly for tools, jewelry and other items, I try to steer away from electronic items though unless exceptional with warranty.
By jag
February 25, 2009 1:02 PM | Link to this
Nigel King, who just put his guitar in hock until he gets his income tax refund, is the same guy in the picture checking out the “Classic Guitars”? If you’re looking for an vintage guitar for a “player”, you should probably check tradin’ post or online first. If you want an authentic “Classic Guitar”, do not buy from a pawn shop! To have value as a vintage instrument, it MUST have all original parts! Pawn Shops will not guarantee their guitars are not “Frankensteins”, (Rebuilt from parts)
By Joanie
February 25, 2009 11:37 AM | Link to this
Never shopped in a pawn shop, but I’ve heard there are some good deals. Maybe I should start.
By Ethel
February 25, 2009 11:18 AM | Link to this
I have seen both the good and bad sides of pawn shops. They have come in handy years ago when in a pinch for some quick money. But when my husband’s apartment was broken into we ended up finding some items at a local pawn shop. The police would do nothing and to get the stuff back we were told we had to buy it. That really made us mad because it was already bought by us once. Just be careful and smart.
By Ben
February 25, 2009 10:20 AM | Link to this
Julie, we did allow commenting on the DP&L story. Feel free to post there, too.
By Pawn
February 25, 2009 10:09 AM | Link to this
What is wrong with a pawn shop? You need money, and they offer you a loan for holding your stuff. If you can’t come up with the money to pay them back you lose your stuff. Nothing sleazy about that. Same people who bought a house they couldn’t afford complain that the pawn shop sold their stuff. They sold it because you didn’t have the money to pay them back. DON’T BUY MORE THAN YOU CAN AFFORD!
By Last Resort
February 25, 2009 9:51 AM | Link to this
Thank you Jag for the info. Everyone needs to investigate before loaning or pawning. See what Clark Howard has to say. I know that when my house was robbed my jewelry (according to the police) was probably pawned by crooks. A lot of stolen goods gets processed through pawn shops. The police never found my items after I provided a very thorough report. Pawn shops should be a last resort they are legal crooks. I feel for everyone who has had something stolen, family heirloom, wedding ring etc..
By eugene
February 25, 2009 9:39 AM | Link to this
dayton detective gary pilgrim uses the pawnshops to profile customers and he is on a mission to assume every customer is suspicious when in all actuality they just need some extra money in hard economic times. how can he do that????
By gary
February 25, 2009 9:37 AM | Link to this
I have for the last 8 years , used RICHS PAWN SHOP. Never would have stepped foot in one, till my roommate, pawned my stuff and left me with the tags, bought all my stuff back. Roommate went to jail. Due to the times, they have been a life saver when no one else would give a hand. Next time, read the plagues behind his register that say BBB and other business related items.
By Julie
February 25, 2009 8:30 AM | Link to this
Could Dayton Daily News possibly allow readers to comment on the story about DP&L reporting late payers to Experian? This is why Dayton is becoming a dying city. People are losing their jobs, the economy is tanking and greedy companies like DP&L are making it harder and harder for consumers to make ends meet. Will DP&L require higher deposits from their customers that pay late?
By jag
February 25, 2009 8:18 AM | Link to this
Oh m, what type of person defends pawnshops as fair and legitimate? Sounds like you’re in their bed as well. What I meant was while negotating with the creeps, tell them you intend to get the item back quickly (end of the week paycheck); they will offer more if they think the item is valuable to you and you’re not just looking for a quick buck (this may also give the impression that the item isn’t stolen for you thieves out there!) If you have time please try ebay, craigslist, then tradin’ post!
By diamondjd
February 25, 2009 6:14 AM | Link to this
Also remember that Pawn Shops also buy things from crooks (possible fence shop) and mis-label them. My son had items stolen and found them in a pawn shop with a mis-labeled tag. When he called the police no one responded. He is still waiting for a call back.
By DaMang
February 25, 2009 12:52 AM | Link to this
Rich’s is mostly an Ebay store now.They won’t even give the local shoppers a shot at the “Good Stuff”.Go to ebay and look at the high dollar items they have for sale,and then go to the store.Those items won’t be for sale!
By jer@GoldintoLoot.com
February 24, 2009 11:18 PM | Link to this
If you plan to visit a pawn shop to sell your scrap gold make certain you know beforehand whether it’s 10K, 12K, 14K, 18K, 20K, 0r 22K and the most current price of gold. Otherwise, you will not get fair market value.
By m
February 24, 2009 5:24 PM | Link to this
Wow, Jag must be an uninformed IDIOT, considering a pawn and loan are the exact same thing! lol What sense does it make for a pawn shop to buy items off Ebay for re-sale that’s an ignorant statement, I cant ever seem to find a deal on Ebay but I find them at Pawn Shops. Sounds like Jag is a struggling Ebay seller who just might be jealous of the pawn successful pawn bussinesses here in Dayton. Oh, and also “Jag” you may want to check that law book and see exactly what fencing is…
By jag
February 24, 2009 5:03 PM | Link to this
PLEASE EVERYONE READING! Pawn shops should be your last resort! They pay FAR below ebay prices which is why their incoming goods are from walk-ins, NOT from purchases on ebay (ex. Rich’s has sold 4998 items, but only bought 149). They sell for nearly NEW PRICES! You should also know that they are “in bed” with the Police’s Pawn Shop Division and are basically running “Fences”. If you must use one, do a loan not a pawn. If you doubt me, please look up the local pawn shops’ “feedback” on ebay.
By Rob
February 24, 2009 4:47 PM | Link to this
must be a dummie…I never made the Ebay/pawnshop connection before but it makes perfect sense.
That said, I’ve shopped at some pawns but never borrowed from one before.
By teacher
February 24, 2009 4:40 PM | Link to this
If you’ve shopped on eBay, there’s a good chance you’ve seen pawn shop goods - and there are some terrific deals every day.
By Sam
February 24, 2009 4:10 PM | Link to this
No I haven’t but I just might start and very soon too