Pawn vs. Consignment for Designer Bags
People have different buying habits. Some save up to buy the things they want to own. Others are impulsive buyers who cannot resist spending when something catches their fancy. Other people love the idea of having the latest fashion item, especially designer bags.
Designer bags are not cheap. Some people aspire to own at least one during their lifetime. But there are people who are not satisfied with having just one or two, particularly if they have a brand they love.
However, there are times when owning too many designer bags can be burdensome. Some of the bags are never used; some are seldom used, while others are just bought on a whim, just because it is the latest fashion item. The bags end up occupying closet space, often forgotten or rarely used and getting out of fashion.
What to do with your huge collection of unused designer bags
It's a good thing that designer bags are like little investments. When in a crunch, you can let go of some of your designer handbags that you bought 'just because', or those that you seldom use. You can find a pawn shop that specializes in selling designer bags or sell it though consignment. Choosing one of these options will help you get back some of the money you've invested on those beautiful bags.
Getting a cash back
Now that you know the options, you have to make a decision. Which is better: pawn or consignment?
The two options are not the same. You will get back some cash from either one, although you have to consider three things:
- Time when you forgo the ownership of the bag
- When you actually get paid
- How the shop gets paid
If you want to earn cash from your designer bags but you do not need payment immediately, you can bring your bag to a consignment shop.
If you need cash immediately but you do not want to sell your bag, you can use it as collateral in a pawn shop.
Which option is better?
You relinquish your ownership of the designer bag through your failure to meet the pawn shop's loan terms. You can claim your bag once you pay back your short-term loan (typically the principal plus interest) from the pawn shop within a specified period.
A consignment shop will assume ownership of your bag. You give the shop the authority to sell your bag, with you earning a share of the sale price. Your commission from the sale might be a little higher than what you'll get from the pawn shop. The downside is that if the item is not sold, you are not paid, but you can get back your consigned bag. Likewise, the time to be paid depends on whether the bag sells within a week, a month or more.
Do some research as the rates offered by pawn shops and consignment shops differ. Choose the one that will give you the best price for your slightly used designer bags.