Boom times for American pawnbrokers as rich hit hard times(even Rolls-Royce pawned)

Times of London ^ | 07/19/08 | Chris Ayres

[TigerLikesRooster]

Boom times for American pawnbrokers as rich hit hard times

Chris Ayres

“I need $3,000,” Tito Vazquez, 45, says as he looks at his gleaming Harley-Davidson motorcycle. “But the economy's a mess right now and my credit cards are all maxed out.”

Which brings him here, to Collateral Lender, a few blocks east of ultra-posh Rodeo Drive, in Beverly Hills. In short, it is a pawn shop. Like most pawn shops in Los Angeles - home to not one but two failed mortgage lenders, Countrywide Financial and IndyMac Bank - it is doing a roaring trade.

For Mr Vazquez, that is not good news: Collateral Lender has so many Harleys it does not have room for any more. The manager sends him to another broker in a different part of town, where with a bit of luck he will be able to get a short-term $3,000 float using his “hog” as collateral. The state-regulated interest rate is likely to be about 7 per cent, although pawn shops have a knack of getting around this by charging other fees.

“I know I'll be coming right back for my Harley,” says Mr Vazquez, who lives an hour from Beverly Hills and needs the cash to pursue an urgent “business opportunity”. “If I wasn't coming back that would be different. I've pawned this bike a few times.”

[TigerLikesRooster]

Have you pawned anything lately? Ping!

[TigerLikesRooster]

“We haven't had any private jets yet, but we've had a half-million-dollar racing boat, a Lamborghini, a Ferrari, an Emmy, a couple of Grammys, gold records, platinum records, Cartier watches, Rolexes,” Pete says. “This can be a very interesting job.”

LOL.

[library user]

A pawn shop or a pwned shop? That is the question.

[Wally_Kalbacken]

Don't these bastard journalists from the UK love writing about how the wheels are falling off our economy? I think they've pronounced us dead and buried about 3,000 times this year to date.

[Proud_USA_Republican]

Hey London, those living in glass houses shouldn’t throw stones. How’s that 30% in the past 12 months housing correction going for you over there?

[Spktyr]

Heh.

The difference between a Harley and a Honda:

In hard times, you can ride the Honda to work as you know it will provide reliable transportation. You sell or pawn the Harley because you know it *won’t*.

[denydenydeny]

"...an Emmy, a couple of Grammys, gold records, platinum records, Cartier watches, Rolexes,” "

As I've said before, any of these small items can be sold on Ebay for at least three or four times the pittance that pawnbrokers give you. There's just no reason you'd want to sell to a pawnbroker in the age of Ebay unless you need the money immediately. As in, this very second, can't wait even one minute, gotta have the money now, now, now.

Which makes me strongly suspect that the transactions reported in the story have less to do with "the economy" and more to do with various types of white powder and little crystal rocks.

[Wil H]

So this rich guy pulls up at a pawn shop near the airport and borrows $100.00 at ten percent per week interest (simple interest) for two weeks. The pan shop owner asks him if he has any collateral and the guy says “sure, keep my rolls royce till I repay you.” “ but do us a favor and run me over to the airport”

So the pawn shop owner agrees the deal. Two weeks later the guy shows back up at the pawn shop and pays off the loan $120.00 (the $100, plus $10 twice).

The pawn shop owner gives him back the keys to the Rolls that has been sitting in his secure compound and says “hey, tell me why a man of your obvious means has to borrow money at my exorbitant rates of interest?”

“that’s easy”, says the Rolls owner, “where else can you park a Rolls Royce securely at the airport for $10.00 a week?”.

[bad company]

You may joke, but when I was in the Army living in the barracks, we’d do that with our personally owned guns. Company policy stated that our guns had to be kept in the armory. To get them out you had to hunt down the armorer, hunt down the keys and then after an hour or two you’d get it out. Forget it on the weekends. Instead we’d just pawn them for ten bucks and we’d get them out when ever we wanted.

[dennisw]

I guess y’all know where to get a great deal on a used a Harley — At the pawn shop

[TigerLikesRooster]

Near Rodeo Drive.:-)

[WVKayaker]

...As I've said before, any of these small items can be sold on Ebay for at least three or four times the pittance that pawnbrokers give you.

I am a pawn shop "junkie". I don't think you understand the business. There are many who "sell" their items outright, surely, but most intend to redeem their pawn tickets. But, the reason they are there is because they have no funds and need it NOW!

I have never sold anything, nor pawned. I have BOUGHT lots of great deals. I have an iMac G4 I am typing on, which I bought for $300, when it was almost new. The new one was $1500. I didn't get a box, but it had a hard drive full of software. I bought a 17* G4 Powerbook for $500, when it was a year old. I got a Denon receiver for $200. New, it was almost $1600 from Crutchfield.

I have a Canon 8 mp Powershot Pro 1, for which I paid $120. The new price was around $500. I bought k-rands at a discount, as well.

I was in a shop one day, when a well dressed couple came in. They needed $11000 for payroll that day. They were owners, and a client had bounced a check on them, leaving them with no time to get a bank loan. They pawned her mom's 4.25 ct. diamond ring on Friday, and negotiated a special lower rate. On Monday, it was redeemed with a bank loan.

Their employees needed to get paid, and that was the only way to do it in a timely manner. I do a lot of business with the shop, and the manager related that one incident, among many...

not actual ring...

eBay is not always a good way to go. I listed a Nissan 300ZX, and sold it twice with no payment from either bidder. eBay still wanted almost $300...

Your mileage may vary!

[FORTRUTHONLY]

I remember sometimes in January while in the grocery store this guy on the phone talking to someone. He hangs up, turns to his wife and says something like "Remember the awesome wheels SoNSo got for Christmas? He needs to pawn them because he needs money for this month's mortgage." and then he starts on this tirade on how bad the economy is and forcing his friend to pawn the wheels. Meanwhile I can't help myself thinking if the moron needed the expensive wheels to begin with and what were his priorities: mortgage, food or wheels?

This continues to happen, people make bad purchases which they cannot afford from the get go (may that be a house, a Harley or fancy wheels for a fancy ride) and they they cry wolf. I have seen this to be more the case than actually people falling on bad times due to the economy. Being fiscally responsible is a thing of the past for most people, unfortunately!

[Gorzaloon]

Don't these bastard journalists from the UK love writing about how the wheels are falling off our economy? I think they've pronounced us dead and buried about 3,000 times this year to date.

They have to. More and more of their subjects are becoming outraged and disgusted.

They is why their Press is always filled with breathtaking new Medical Advances (That never amount to aything) and the stories get more and more frantic as the NHS kills more and more subjects.

Stories about how "It's worse elsewhere" control the population of North korea very well, so are desperately needed by their current Government.

Expect more stories of "Dangerous America" as their out-of-control drunken yobs and "Asians" kill more and more subjects for idle, bored amusement.

Read the Times and Daily Mail for a week, and you'll see for yourself what's going on, and the reasons for these desperate stories.

[Larry Lucido]

as rich hit hard times

Let me fix it:

"..as people who thought they were rich because they landed ass-backward into some money and did absolutely no financial planning hit hard times.."

[Larry Lucido]

LOL!

[RetSignman]

[our personally owned guns]

I haven’t been in the military for a long time but are you saying that you can replace a government issue gun with a personally owned one?

[rrrod]

Im a pawn shop junkie too...Always looking for stuff to buy

[Chode]

“But the economy's a mess right now and my credit cards are all maxed out.”

let me get this straight, he's GOT a job, but his Credit CARDS are MAXXXED OUT and it's the ECONOMY'S FAULT...

[WVKayaker]

...Being fiscally responsible is a thing of the past for most people, unfortunately!

Broad brush...

Another anecdote from the same shop...

A guy pulls up every three weeks with a tractor and trailer, filled with furniture from NC. He pawns his gold and diamond ring for $500 and leaves. The manager tells me the guy comes in every month, for the same deal.

He will return after the next weekend of roadside sales, and redeem his stuff. He then drives back to NC, where he lives, and comes back next month, rinse and repeat. He uses the $500 for living money, and fuel, while he is in the area. He has bad credit, so no cards. But he always has his diamond ring! He always sells his inventory...

I remember a term from my early years, which describes people with no sense of money. I cannot post it now, for political correctness. But, it did have a racial epithet and was used for being "temporarily rich"... at least on Saturday Night! My apologies for any offense (NOT!).

[Tainan]

Good stories that does explain the pawn business. I have bought a number of guns at pawn shops - both new & used - and have sold a couple to a pawnbroker. Very satisfied all around. They are great places to shop.

[Tainan]

No, that is not what he is saying. He is talking about his personal weapons.
If one lives in the barracks they, personal guns, must be kept in the arms room. Access to them on the week-ends, when a lot of people like to go shooting can be tuff or not possible for the reasons he mentioned.
So he was using the pawn shop as a storage place with easy access on the week-ends. Not his service weapons - his personal guns.
I hope that is understandable.

[Rebelbase]

I agree. eBay killed quality stuff in pawn shops.

[RetSignman]

[I hope that is understandable.]

As I stated in my reply to BAD COMPANY, It has years since I was in the military and was unaware you could have personal weapons.

Thanks, I did manage to understand.

[CaliforniaCon]

I’ve never been to a pawn shop — sounds interesting. Might not be a bad place to “shop.”

[RipSawyer]

The difference between a Harley and a Honda:
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

I have never owned a motorcycle and have probably ridden fifty miles on one in my entire life so I don’t really know about the reliability factor but I still remember what a Harley lover told me some years back. He said,”I won’t ride anything else but if you ride a Harley you need to have somebody following you on a Honda to pick up the pieces that fall off your Harley”.

[GOPJ]

There's just no reason you'd want to sell to a pawnbroker in the age of Ebay unless you need the money immediately. As in, this very second, can't wait even one minute, gotta have the money now, now, now. Which makes me strongly suspect that the transactions reported in the story have less to do with "the economy" and more to do with various types of white powder and little crystal rocks.

I was talking the other day to an old retired police chief - who explained the laws for pawnbrokers had been changed recently - making it easier for them to traffic in "hot" property. I forgot the details - so you might be right. Now it's easier for the pawnbrokers to fence the hot stuff for drug addicts. Your Ebay example makes perfect sense...

[Freedom_Is_Not_Free]

Social security. Medicare. National debt. Huge banking bailouts to come.

The government has pawned your entire future, and your children’s and children’s children’s. I think that is plenty of pawning for one generation.

[Freedom_Is_Not_Free]

You never get a great deal on anything at the pawn shop. Those owners think everything they have is a priceless antique. They sit on ebay day and night and if a guitar sells for $1,000, they think every chinese made guitar they get in is a $1,000 guitar. I haven’t seen a deal in a pawn shop in decades. They have the worst prices in town.

[cynwoody]

I bought k-rands at a discount, as well.

How much of a discount do you get on those? Isn't their price easily established?

[WVKayaker]

The established price is a standard, not a requirement. They are 1 oz. coins. I will tell you that I made an instant profit! I will buy more from the same source, for security, not profit.

I also buy 1/4 ct diamond solitaires for cheap. I get gold and the stone for way less than wholesale. I buy electronics, and other items, which are always deeply discounted. I love to haggle, and it works well in that environment. I ALWAYS pay in cash.

I have built relationships with the right people... and that is how my life works! Your mileage may vary.