7 Things Singaporeans Should Know About Pawn Shops

[Confuseous]

6. Pawn Shops Give You the Surplus from Auctions

Let’s say you hock your fancy watch for $9,000. You make no repayments, and it gets auctioned off.

At said auction, a large crowd of people fancy the watch. Bidding gets fierce. In the end, the watch ends up selling for $11,000. What happens to the excess $2,000?

It goes back into your pocket, that’s what (minus any other fees like interest).

This also means that pawnbrokers aren’t inclined to rip you off with unfairly low valuations. If something is auctioned for more than they gave you, they still won’t pocket all of the profits.

- http://www.moneysmart.sg/personal-loans/7-things-singaporeans-should-know-about-pawn-shops/

 

[Kuailan]

When you pawn you gold watch, let say market value is $10K they will offer you
$3k and hope that after 6 months you forgot to redeem!!

Pawn shop owner ho say lioa!! they will auction off $9K and pocket $6K!! this is how
pawn shop make money!! you think they open Pawn shop for your convenience??

Think again!!

 

[BuiKia]

Never heard of such thing...is it true? How they contact the seller?

 

[Seee3]

Never heard of such thing...is it true? How they contact the seller?

It is true but rest assured the pawnshops never have to find the seller because the auctioned price "cannot" be higher than the pawned value. It is the same with auctioning of repossessed car. The final bid during the auction has never been higher than the outstanding loan. Until more publicity and transparency is imposed, the payment of difference between the final bid and the pawn value shall remain a dream.

 

[Yingge]

When you pawn you gold watch, let say market value is $10K they will offer you
$3k and hope that after 6 months you forgot to redeem!!

Pawn shop owner ho say lioa!! they will auction off $9K and pocket $6K!! this is how
pawn shop make money!! you think they open Pawn shop for your convenience??

Think again!!

That show that you do not understand prawn shop... They will refund to the owner that prawn it...

This happen to my belated father once, he prawn a gold chin, he did not asked for much as he thought he will take it back later... However he forgot to take the gold chin and the prawn shop returned him about 1K to 2K after they sent it for auction.

We were surprised too!!! If you asked how they return, it is simple, you need to give your personal information when you prawn your things.

 

[Narong Wongwan]

TS is correct.
The pawnshops will have to contact the 'Pawnee'.
In the event the Pawnee cannot be located, the excess goes to the government...the Pawnee can still lay claim to it within X period of time.
Pawnshops cannot makan the money.
And auction amount can exceed pawn amount with interests computed....some tine back when gokd prices surged, this scenario became very common.
Also for other items that were pawned under value, back then pawnshops had their own people to bid back for these items...and then they only had to contend with rival pawnshops or garang gunis who will compete the bids with them. Now auctions attended by many laymen, hobbyists, enthusiasts out for a bargain so its not as rosy as previously after bid prices driven up.