PAWN SHOPS IN NEW ZEALAND

PAWN SHOPS

What is a pawn shop? What are the pawn shops near me? These are the questions people ask when life hands them an unexpected emergency and realize they need dire financial help

In this article we shall exhaust all that entails pawn shops in New Zealand under the following subheadings:

  1. Definition of a pawn shop
  2. How a pawn shop works
  3. Services offered by a pawn shop
  4. Requirements to get a pawn loan or pawn goods
  5. Average interest rates and fees
  6. Terms and condition of a pawn shop loan
  7. Goods accepted in a pawn shop
Pawn Shops
Linwood Cash Converters

DEFINITION OF A PAWN SHOP

Also called a pawnbroker,  a pawn shop is a business or shop which loans people money, after they bring in valuable items which they have to leave with the pawnbroker

Find Pawn Shops
How Pawn Shops Work NZ

HOW A PAWN SHOP WORKS

The working of a pawn shop is simple. People in need of a small loan leave valuables (collateral) with the pawnbroker. They will only get their valuables back after they pay back the pawn loan with  interest.

If the person fails to pay the pawn loan back with the interest within the speculated time limit, then the pawnbroker has the right to sell the valuable item to pawnshop customer in order to get back the money they had lended the borrower.

Loans issued by most pawn shops in New Zealand are usually short term loans and should be paid within a period of 90 days. The amount of loan given depends on:

  1. The item being given as collateral.
  2. The condition of the item being given as collateral.

The terms and conditions of that given pawn shop.

Search Pawn Shops

SERVICES OFFERED BY A PAWNSHOP

  1. Secured loans- which are the most common loans they issue. This means that they use your valuable good as collateral. Most of the items used as collateral in pawn shops are items which are not accepted by banks as collateral.

  2. Unsecured loans- which are loans issued without providing collateral and you don’t put personal possession at risk. Usually such types of loans are given to people who have history borrowing from a given pawn broker and have proved to be credit worthy.

  3. No credit check loans- which is a type of loan provided by checking your “creditworthiness” without conducting a strict credit check.

  4. Pawn goods- includes selling valuable goods of loan defectors or buying pawn goods from customers who want a loan but are avoiding to pay interest.

Pawnshops >>

REQUIREMENTS TO GET A PAWN LOAN OR PAWN GOODS

Pawn shops are allowed by New Zealand law to only engage in business with people who are over 18 years old. They also need to ensure that they are not trading using stolen goods, due to this pawn shops in New Zealand require you to provide identification such as:

  1. Driver’s license

  2. National ID

  3. International or New Zealand passport.

  4. Current student identification card ( with your date of birth indicated).

Pawn Your Items
Pawn Shop Interest Rates NZ

AVERAGE INTEREST RATES AND FEES

Pawn shops in New Zealand charge high rates and fees. On average you pay 35% monthly interest. This means you pay an annual interest rate of over 500%.

Most of the loans from pawn shops are for only 3 months so make sure you are able to pay it off within this timeframe

Interest Rates
Pawn-Shops-Auckland

TERMS AND CONDITION OF A PAWN SHOP LOAN

Contract terms for most pawn shops in New Zealand near you, may include:

  1. One month’s interest may be charged for any part of the month in which pawn property is redeemed, including the 10 days grace period required.

  2. NZ$5.00 may be charged for each loan written or 3% of the loan amount, whichever is greater with a maximum of NZ$30.00

  3. A maximum of NZ$3.00 is charged as notification fee

  4. A maximum of NZ$10.00 is charged as lost ticket verification fee.

Search Local Pawn Shops

GOODS ACCEPTED IN A PAWNSHOP

They include:

  1. Gold and jewelry. Commonly accepted jewels include: gemstones, platinum, set diamonds, white and yellow gold.Almost all pawn shops across New Zealand accept jewels as collateral.

  2. Selected prestige watches and luxury pens from leading brands such as Rolex and Cartier.

  3. Musical instruments

  4. Electronics

  5. Household appliances

  6. Gardening equipment

  7. Designer bags and wallets from top designers such as Gucci, Channel, Louis Vuitton and Dior.

  8. Cameras and camera equipment.

  9. Vehicles, boats and boating equipment.

  10. Power tools such as drills, chain saws and generators among other tools.

Pawn Shop Goods

HOW TO GET YOUR NEAREST PAWN SHOP.

Most pawn shops in New Zealand are now online and you easily find one using google. Moreover, you can search for the best pawn shops here >>