Difference Between Pawning and Selling Explained

A lot of people might pass outside the pawn shops and never go in since they do not know what pawning actually is. There is a difference between pawning and selling. Also, there are pros and cons of both kinds of sales. The Difference between Pawning and Selling is that pawning is used to take a loan while in selling, a transaction is made and the person gets to keep whatever he or she has bought.

Selling: Process and Market.

Selling refers to actual giving away of something in return for money. For example, if you go to a shop and try to sell something for money at that time, it will be called selling. When you go to a shop, they will most likely buy the things that are quick to sell. They will not take things that sit on the shelf for too long as they do not want that. The item that you are selling to the pawn shop must be of good value and quality.

 If you trying to sell electronics such as watched or radios, they must be in food working condition. When you want to sell something, you have to take the item to a pawn shop and tell them that you want to sell your item. Then, the person will offer you a price for your belonging. If both the parties agree with the price, then the item is sold.

Pawning: Process and Market.

On the other hand, pawning refers to a short term loan that you can take from a pawn shop. For example, if you want money, you can give something of value to the shop owner. In this instance, you keep something as collateral.

This is called the pawning. In return for that, the shopkeeper will loan you the amount you need. If you are unable to pay the amount back, the shopkeeper can keep the valuable thing that you pawned.

 Pawning is also covered by the law so those who are lending you money know that they are protected by the law. Most of the times, people keeping their things as collateral are unable to pay back the money as they end up losing their valuable item.

In most cases, this item is gold or diamond jewelry. Sometimes, smaller things can also be pawned, such as a phone or a watch that has value.

Summary of Difference Between Pawning and Selling:

• The Difference between Pawning and Selling is that in selling, the product is sold while in pawning, the object is actually kept as collateral.
• In selling, you can sell the object in return for money while in pawning, the object stays will the shop owner until you manage to pay back the loan he or she has to lend you.
• Another Difference between Pawning and Selling is that pawning is simpler than selling as many shop keepers will agree for pawning rather than selling.
• The downside with selling is that most shopkeepers do not want to take things that will just stay on the shelf and not sell quickly.