Pawn shop in Copenhagen, Denmark

A pawn shop (called “pantelåner” in Danish) gives you the opportunity to take advantage of the equity you have in your things. Like a bank allows you to take a loan against the free equity in your house, a pawn shop allows you to do it for all kinds of things.

Pawn shops in Denmark

PANTSAT.DK is the leading, and one of the few, pawn shops in Denmark. We are located in the heart of Copenhagen.

 

What is a Pawn shop?

A pawn shop is a company, which loans you money in exchange for taking you things in security – pawned. Pawn, put simply, just means that there is some security for the money loaned out. To pawn something is therefore very normal, if you for example loan money at the bank or a mortgage company to buy a house or apartment, they will take security in it. Likewise, for companies, it is possible to pawn their assets – like machines or product stock.

 

The pawned item acts as security, just in the case you are not able to pay back the loan. In the case where you don’t maintain the loan, the pawn shop can sell your item and get the money back for the loan that way.

Pawn shops as an alternative to Quick loans

The pawn shop business has almost been nonexistent in many years. The past couple of years however, there has been increased demand for access to fast financing. This can for example be seen by the growth of online quick loans and payday loans, which give people easy and fast access to money. This industry was very small just 5-6 years ago, compared to now where it is a market with more than 1 billion kroner in loaned out money.

 

Online quick loans and payday loans are appealing because they give fast access to money. Often, all you have to do, is fill out a form online, and shortly thereafter the money is on your account. It is however extremely expensive. As an example, the largest player in Denmark of quick loans has an APR (Annual Percentage Rate) of 820% (as of January 2019). The extremely high interest rates mean, that people often end up with more debt than their personal income can handle, and it is very difficult for them to pay the loan back.

 

With a pawn shop, you give them an item of value as security for your loan. That means, that in the unlucky situation where you cannot pay back the loan, the pawn shop can sell your item. Through the sale, they get their money back, and you don’t owe them any money. It is of course unlucky that you lost an item, but positively you never create a situation where the debt gets out of hand – there is no debt creation by using a pawn shop.

What kind of items can be pawned?

PANTSAT.Dk is Denmark’s leading pawn shop. One of the reasons for being the leading player, is that we accept the widest range of items.

As general guidelines they take anything of significant value. The following principles can be used to determine whether an item can be pawned at PANTSAT.DK:

 

  • It must be possible to determine the value of the item
  • The item should not lose all its value over time
  • The item can be sold
GUIDELINE: If you can find similar items as your own item being sold online, it is possible for PANTSAT.DK to pawn it.

In practical terms, it has to be possible to determine what the item is worth, so looking online for similar items is a good start. Likewise, the item needs to represent value for more people than just you as the owner – e.g. it is not possible to take the affection value into account as this is only for the original owner. This is for example the case for inherited jewelry, which for the person has tremendous value but if it is sold to a new person, it would not represent that same value. As the loan is given with the item as security, the basis of the valuation is what it could be sold for to a new person, as it is based on the situation if you don’t repurchase the item.

Credit rating and default on loans

When you use pawn shops, the loan you get is against security in your item. Therefore, it is not necessary to make a credit rating. Furthermore, with traditional loans, if you don’t pay them back it affects your credit rating negatively, and in Denmark you will be registered in RKI. However, this will not happen with pawn shops – if you don’t pay back the loan you have already provided your item as security, so no further action is taken.

 

At PANTSAT.DK, in the case where you don’t repurchase your item, we will try to sell your item – potentially on an auction or sales platforms like DBA, GuldogGratis or Facebook and so on.

 

Let’s take an example. Let’s say you have you have turned in an item and gotten 10.000 kr. in payment. In the case where you don’t buy it back, we will try to sell it. Let’s say we are only able to sell it for 8.000 kr. In that case, this is our loss, you still don’t owe PANTSAT.DK any money. Since we as a pawn shop have to cover such potential losses ourselves, is also the reason that we are very conservative in our valuation of items.

Valuation of items at Pawn Shops

To use a pawn shop you need to have an item of value, which can be given to them as security. The payout you receive is based on the valuation of the item. At PANTSAT.DK you can get up to 50% of the items value paid out, however for some items which are easily sold, like gold, it can be up to 75%.

Therefore, the valuation is of course and important part of the pawning. The following can be used as general guidelines for how and what PANTSAT.DK values items in the different categories:

 

  • Watches: We look at what similar watches are sold for on chrono24 and sites like DBA. We take things like original papers and box into consideration, and likewise the watch condition.

 

  • Cars and Motorcycles: With the license plate, we can access former inspection reports, and what similar cars or motorcycles are sold for at sites like biltorvet.dk and 123mc.dk

 

  • Electronics: Electronics usually fall in value over time, but on the other hand electronics is very easy to sell because the market is very big. Vi usually look at sites like DBA and eBay

 

  • Music Instruments: Music instruments usually hold their value very well over time. We check the prices for similar items on sites like DBA and eBay.

 

  • Designer bags: Bags hold their value well over time and is an attractive accessory for both men and women. We check the prices for similar items on sites like DBA and eBay.

 

  • Gold: Gold is very easy to value – and the value of gold is fairly stable on the world market and is easy to resell. Gold has a value of about 80 kr. per gram for 8 carat and up to 260 kr. per gram for 24 carat fine gold.

 

  • Bikes / Bicycles: Denmark has a huge market for bikes. We check what similar bikes are sold for on sites like DBA and GuldogGratis

 

  • Design furniture and lamps: Designer furniture and lamps usually keep their value well over time. We check prices for similar items on sites like DBA and also look at realized auction prices on lauritz.com

 

  • Art: Art can be very volatile and is hard to value. We look at realized auction prices for similar art on lauritz.com and Bruun Rasmussen, and also look at the artist as a whole. If it is a unique piece of art, we usually get someone in our network to take a closer look at it and make a valuation.
  • Jewelry: Very often, a lot of the jewelry value is lost when it is resold, unless it is from a famous design house like Georg Jensen, Tiffany & Co. or the like. Vi try to look at what similar jewelry is sold for online, but as a last resort we look at the value of the gold and stones in the jewelry piece. E.g. gold has a value of about 80 kr. per gram for 8 carat and up to 260 kr. per gram for 24 carat fine gold.

 

These categories are just a general guidance, there can easily be items which are unique and don’t fall in any of these categories – like boats, clothes, sporting equipment and so on. Likewise, for companies they can have items of value which can be relevant to pawn.

After we at PANTSAT.DK have valued your item, we will create on offer for how much we can give you in payout. For most items we can pay out up to 50% of the value, however this can be higher.