Van Nuys Pawn Shop offers loans with fixed maximum and minimum terms of 4 months. The full repayment of the loan should be made in the maximum repayment period of 4 months, but can be made in full in as little as 1 day if the customer wishes to pay it off sooner. APR Interest Rates vary from 2% to 35.99%. Rates vary based on value of collateral as well as length of loan. All rates and terms of loans are strictly regulated by the State of California. Example: Amount Financed $2500. APR 24.12 percent. Length of loan 4 months. Total Interest charge $201.00 Total Interest and Principle is $2,701.
• This is one of the biggest misperceptions about pawnshops.
• Pawnshops base loan offers on re-sale value, not retail price. This difference is most easily exposed with jewelry. The majority of consumers hold the misconception that because jewelry is made of gold and precious gems, it is supposed to be very expensive; after all it’s what treasures are made of right?
Jewelry stores are more than happy to leave that public misconception intact and exploit it for their financial advantage through outrageously high prices.
• Ever wonder how jewelry stores can have sales several times a year and holidays of 60%, 70% and more off, yet still make enough to stay in business?
• Unfortunately the ugly truth is the consumer is being ripped off, but at the retail side of their buying experience. It is only exposed when they bring that over priced item to a pawnshop for a loan evaluation using real market value. But by then, jewelry stores have made their profit so they couldn’t care less.
• This is why buying jewelry at a pawnshop is being money smart. You pay for the item’s value, not the posh chandeliered ambiance of where you bought it.