Not all pawn shops are the same, but they all follow the same regulations and laws. Movies and TV have given the whole industry a reputation it doesn't deserve. Here are three of the most common myths — and the truth.
Myth 1: Pawn Shops Have Sky-High Interest Rates
A pawn shop doesn't set its own interest rate out of thin air — the state regulates it. At DD Pawn Loans, interest starts at 5%. And remember: a pawnbroker's goal isn't a single sale, it's a customer who comes back. Ripping you off works against that.
Myth 2: Pawn Shops Sell Stolen Goods
This is the most persistent myth — and it's false. Legitimate pawn shops check a government-issued ID on every transaction and report daily to local law enforcement. Police actively work with pawn shops, which is exactly why industry data shows less than 1% of pawned items turn out to be stolen. We'd rather lose a sale than touch stolen property.
Myth 3: Pawn Shops Try to Rip Customers Off
A pawn shop makes its profit by reselling items — which means we can't pay full retail value, or we'd be out of business. What we do instead is offer the best price we can while still leaving room to resell. If you feel a number is low, it's always fair to negotiate, whether you're buying or selling.
The Bottom Line
Like any business, a pawn shop lives or dies on its reputation — bad Google and Yelp reviews keep people out. A good pawnbroker will do whatever they reasonably can to reach a price that works for you. Have a question? Check our FAQs or call (561) 774-9292.