The two offers
—
- To get the item back
- —
- Extra cash if you sell
- —
When pawning makes sense
- You need cash for a short time and know when you will have it.
- The item matters to you or would cost much more to buy again.
- The cost of the loan for the months you need is lower than what you would lose by selling.
When selling makes sense
- You will not use the item again.
- You are not sure you can repay on time; a forfeited pawn is a sale at the lower loan price.
- The purchase offer is well above the loan offer.
The cost of keeping the option to buy it back
Pawning a $300 item and repaying after one, two or three months costs at most this much in charges, by state law:
| State | 1 month | 2 months | 3 months |
|---|---|---|---|
| Texas | $45 | $90 | $135 |
| Florida | $75 | $150 | $225 |
| Georgia | $75 | $150 | $225 |
| Tennessee | $66 | $132 | $198 |
| Ohio | $24 | $48 | $72 |
| Arizona | $44 | $83 | $116 |
If the purchase offer is higher than the loan by more than these charges, and you are not sure you will come back, selling is usually the better deal.
Pawn or sell, item by item
Gold is the easiest to compare because its metal value is public: see where to sell gold and pawning gold. For other items, the item guides explain how shops value them:
Get offers from more than one shop: see pawn shops by city. For gold, check the metal value first with the gold calculator, and read how to get the best price.
Questions
Is it better to pawn or sell?
Pawn if you are sure you can repay soon and want the item back. Sell if you do not plan to come back for it: you usually get more cash and owe nothing.
Why is the purchase offer often higher than the loan?
When the shop buys, it can resell right away. With a loan it has to hold the item and may never sell it, so it lends less.
What happens if I pawn and cannot repay?
After the grace period, the shop keeps the item and the debt ends. In practice you sold it for the loan amount, which is usually less than the purchase offer.