Pawnbrokers lend money on items of value ranging from Gold and Diamond Jewelry to Musical Instruments and Electronics. Pawn contracts in Michigan are for 3-Month terms at an interest rate of 3% per month plus $1 per item for storage. (These rates are among the lowest in the Country) Once the Pawn Loan is made, the Collateral is set aside either in a secure Vault or safe Warehouse until the Loan is paid back. The Loan may be paid back at any time within the 3 months.
Pawnbrokers offer consumers a quick and easy way to borrow money. Pawn Shops offer short term cash with no credit checks or legal consequences if the loan is not paid. Also Pawn loan contracts are very cut and dry with no hidden fees or outrageous interest rates. Payday Lenders often charge an APR in excess of 800%, while Michigan Pawnbrokers only charge an APR of 36%. Motor City Pawn also gives a 14-day grace period after the 3-Months.
Yes, on average at Motor City Pawn 85 percent of all Loans are repaid. Repeat customers make up a large portion of our business which enables us to establish very good relationships.
No, unfortunately due to the low interest laws in Michigan, many shops who advertise as Pawn shops really are not even licensed to make Pawn Loans. Beware of those who offer Buy/Sell options or Buy-Back Contracts. If a Pawn Shop in Michigan charges more than the legal rates of 3% per month plus a $1 storage fee or offers less than a 3-Month Contract please Do Not pawn your items with them. Motor City Pawn Brokers has been fully licensed and insured for over 30 years and offers the highest value for your items along with the lowest interest rates.
No, actually less than 1/10th of 1 percent (or 1 out of every 1000 items) is reported stolen. Pawnbrokers work very closely with law enforcement to ensure all perpetrators are caught and prosecuted. All customers must provide valid identification, must be at least 18 year old, and must be fingerprinted. All transactions for the day are then forwarded to the local police departments.
The difference is the Price. Merchandise at our Pawnshop is generally 1/3 to ½ the price found at Retail Stores.