Thursday, June 1, 2006

How do pawnshops make money? -

when someone pawns something it means that the pawnshop gives the person a loan using the pawned items as collateral. if you repay the loan within a certain amount of time, you get your stuff back. but what mostly happens is the stuff ends up being sold at the pawn shop at a markup price.

They give you $10 to pawn a $100 item. They charge you $15 to get it back or if you don t come back, they sell it for $25.

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