How to Successfully Negotiate a Collateral Loan

Jewelry and loan pawn shops are a great way to get cash when you need it. Whether you’re interested in collateral loans or selling your luxury goods, pawn shops can give you cash same-day. However, just because you need money quickly doesn’t mean you should settle for less than your item’s worth. To avoid getting scammed with unfairly low rates, follow these tips for successfully negotiating a fair collateral loan value.

Prepare Your Item

If you want to earn as much as possible for your item, make sure it’s in the best condition possible. Preparing your item for appraisal by having it cleaned or repaired will increase your collateral loan value, often by more than the price of the maintenance work. Especially in the case of luxury goods such as designer handbags, fine jewelry, and Rolex watches, having an item in good condition will help you secure a higher appraisal value.

Do Your Research

Unfortunately, many jewelry and loan pawn shops take advantage of unknowing customers and offer extremely low rates in exchange for an item. Doing research beforehand so you have an idea of a fair secondhand value will help prevent this from happening to you, so you can ensure that you receive what you deserve for your luxury goods. However, you should keep in mind that collateral loan values will be lower than the resale value of the item in case the pawn shop has to re-sell it, so make sure that you also have realistic expectations of a fair loan value.

Shop Around

Another way to ensure that you’re receiving a fair value is by collecting appraisals from several different pawn shops. You don’t need to commit to the loan to receive a free appraisal, so feel free to shop around and see which local pawn shop will offer you the most for your item. Watch & Wares is known throughout Orange County for offering some of the highest collateral loan values in the area.

Be Courteous

As the saying goes, “you catch more flies with honey than you do with vinegar.” Remaining kind and courteous throughout your interaction, even if your loan value isn’t as high as you wanted, will help make the transaction go smoother and may even incentivize the pawn shop to slightly increase its offer. Reasonable haggling is expected, but becoming angry or belligerent during the process can quickly cause the pawn shop to refuse you a loan altogether.

Visit a Reputable Jewelry & Loan Pawn Shop

Local pawn shops that are in good standing with the community are often in good standing for a reason. Reputable collateral loan issuers will offer fair and competitive loan rates alongside state-regulated loan terms. At Watch & Wares, we offer four-month loans with a 10-day grace period. All of the interest associated with the loan is state-regulated, so you don’t have to worry about sky-high interest rates that make it impossible to repay the loan. Some pawn shops want you to default on the loan so they can collect interest for months on end and still ultimately keep the item. Watch & Wares’ goal is always to help you get back your item and complete a full, on-time repayment. Your comfort and satisfaction are always our top priority.

Watch & Wares has been Orange County’s premier source of trustworthy collateral loans for over 30 years. We have a team of expert appraisers and GIA-certified gemologists that will ensure you receive a fair value for all of your luxury goods. If you need a collateral loan and want the most money possible for your item, give Watch & Wares a call today. We’re always happy to schedule an appointment for a free appraisal. Contact us at (714) 633-2030 or fill out our online contact form to request an appraisal or schedule an in-store appointment.