TV Show "Posh Pawn" - Why Get a Loan?

RealGem

Hi,

I just watched Posh Pawn, and two different ladies each had an expensive diamond necklace that they took to the pawn shop, hoping to get a loan for £40 and £20 respectively.

Their items were worth £250,000 and £120,000 respectively.

The first accepted £120,000 to sell her necklace, even though it was worth more than twice that. OK she might not have wanted the hassle of selling it independently.

But the second lady still wanted a LOAN! (??) despite her item being worth 6 times the amount she wanted a loan for.

What was stopping her from saying "Thank you for the valuation, but I'll think about it for now" and declining their offer, then selling it at a posh auction?

If she only secured the loan with the necklace, she would still have no money to pay back the loan, and could possibly default on the loan and lose everything, surely?

Her chosen career was singer/songwriter. There's no guarantee she'd be successful once she got the loan. Why not sell?

I don't get it at all!

What have I missed?

bris

You missed the whole point of a pawn shop that's what you missed.

The pawned item is for security on a loan, that loan can be what the customer asks for or what the pawn broker is willing to loan on that item, whichever is lower.

These items can be prized possessions that they want back after settling the loan, they are only used as security but still remain the property of the customer until the loan is settled.

kaya

The fact that it was worth 1/4 million " retail" doesn't mean you will get anywhere near that secondhand , they offered her what it was currently worth less their percentage ( I think they said they offered 70% as standard)