PPT from Pawn Shop

[ronlglock]

I just started working for a pawn shop and have a question. When someone puts their gun on consignment at a LGS, the sale is treated like a PPT so off roster is okay -- at least that's how it works at the stores I buy from.

Is there any way to make that work for a pawn shop when:

• The gun is pawned but the user defaults.
• The gun is pawned and the seller says to keep it.
• The seller gets immediate cash

Thanks!

[????? ????]

No, which is why you get lower pawn values for off-roster gun. Because in all those scenarios you outline, the pawn shop now has an off-roster gun that is part of dealer inventory and cannot be transferred via PPT.

[ugimports]

I just started working for a pawn shop and have a question. When someone puts their gun on consignment at a LGS, the sale is treated like a PPT so off roster is okay -- at least that's how it works at the stores I buy from.



Is there any way to make that work for a pawn shop when:

• The gun is pawned but the user defaults.
  
• The gun is pawned and the seller says to keep it.
  
• The seller gets immediate cash
  

Thanks!

PM acespawnshop I dont recall the other pawn members here

Sent from my SM-G965U using Tapatalk

[taperxz]

I just started working for a pawn shop and have a question. When someone puts their gun on consignment at a LGS, the sale is treated like a PPT so off roster is okay -- at least that's how it works at the stores I buy from.

Is there any way to make that work for a pawn shop when:

• The gun is pawned but the user defaults.
• The gun is pawned and the seller says to keep it.
• The seller gets immediate cash

Thanks!

[sfe187]

If the gun is a revolver, can you convert to Single Action and sell as used inventory?

[acespawnshop]

I just started working for a pawn shop and have a question. When someone puts their gun on consignment at a LGS, the sale is treated like a PPT so off roster is okay -- at least that's how it works at the stores I buy from.

Is there any way to make that work for a pawn shop when:

• The gun is pawned but the user defaults.
• The gun is pawned and the seller says to keep it.
• The seller gets immediate cash

Thanks!

Thanks for the PM, just commenting here so everyone gets the same info

1. No you cant do a PPT on a defaulted firearm, you would not have done the proper paperwork for that. When you pawned it you ran it thru the DES in the acquisition part as a "pawn" not consignment.

2. If the gun is pawned and the seller says to keep it thats just a regular default. You still have to hold it per the term of the loan unless agreed upon in writing per the loan contract and the financial code.

3. Seller gets immediate cash? Not sure what you mean here, I assume you mean when you buy it outright. Then that's at buy 30 day hold applies and then you treat it as any other dealer sale.

There is no roster work around as a pawnshop sorry.

[acespawnshop]

No, which is why you get lower pawn values for off-roster gun. Because in all those scenarios you outline, the pawn shop now has an off-roster gun that is part of dealer inventory and cannot be transferred via PPT.

Exactly, if you bring us an off list pistol and want to pawn it or sell it, its worth less money to us than something we would have been able to sell in CA. We have an agreement with a store in AZ who takes all our firearms we cant sell. They dont pay a whole lot since, for example in CA everyone wants some cool off list semi auto pistol, but in AZ they're just a dime a dozen.

[kemasa]

Exactly, if you bring us an off list pistol and want to pawn it or sell it, its worth less money to us than something we would have been able to sell in CA. We have an agreement with a store in AZ who takes all our firearms we cant sell. They dont pay a whole lot since, for example in CA everyone wants some cool off list semi auto pistol, but in AZ they're just a dime a dozen.

Just curious, is there anyway you could receive it and get a DROS worksheet filled out so that you could sell it similar to consignment should the person not pick it up? Basically pawn it and then if it isn't picked up by a given date it turns into a consignment. Perhaps giving the person some money would encourage them to go that route.

I know there are a lot of laws/rules in regards to pawns, so perhaps nothing can be done.

[ronlglock]

No. If it becomes dealer inventory, it’s not roster exempt. If it’s the same pawn shop in our area, they called me and asked me to buy them. I said, no thanks because then it’s no longer a ppt and I could only sell to cops.

Your pawn shop has a ton to learn after talking to them. They should really stay out of the gun game or get educated on the business from what I heard from them. Sorry but it’s my best advice

The owners bought this shop from a gun guy and are 100% on the right side of the law and DO want to get educated. That's one reason I am hiring on. They sell their off-roster inventory on GunBroker but I am trying to think outside the box but within the law to help my fellow Calgunners.

Just curious, is there anyway you could receive it and get a DROS worksheet filled out so that you could sell it similar to consignment should the person not pick it up? Basically pawn it and then if it isn't picked up by a given date it turns into a consignment. Perhaps giving the person some money would encourage them to go that route.

I know there are a lot of laws/rules in regards to pawns, so perhaps nothing can be done.

Trying to make the firearms coming in a consignment is what I was thinking but I don't want to be anywhere in a gray area doing so.

[acespawnshop]

Just curious, is there anyway you could receive it and get a DROS worksheet filled out so that you could sell it similar to consignment should the person not pick it up? Basically pawn it and then if it isn't picked up by a given date it turns into a consignment. Perhaps giving the person some money would encourage them to go that route.

I know there are a lot of laws/rules in regards to pawns, so perhaps nothing can be done.

No, because when we receive the firearm we have to run it thru the DES as a pawn acquisition or buy. Or Consignment. It cant be both.

[acespawnshop]

The owners bought this shop from a gun guy and are 100% on the right side of the law and DO want to get educated. That's one reason I am hiring on. They sell their off-roster inventory on GunBroker but I am trying to think outside the box but within the law to help my fellow Calgunners.



Trying to make the firearms coming in a consignment is what I was thinking but I don't want to be anywhere in a gray area doing so.

How are you going to write a collateral loan on something, then say that the same item was a consignment? Not to mention you still have to run the pawn acquisition in the DES as a PAWN, not a consignment. As I said you cant have it both ways. You're either going to pawn or buy it or do a consignment. You want my $.02 on the topic. Pawn your firearms, hope to get good interest and get what you get on the item when you need to sell it. Focus on jewelry or other sales that make more profit than firearms do.

[taperxz]

How are you going to write a collateral loan on something, then say that the same item was a consignment? Not to mention you still have to run the pawn acquisition in the DES as a PAWN, not a consignment. As I said you cant have it both ways. You're either going to pawn or buy it or do a consignment. You want my $.02 on the topic. Pawn your firearms, hope to get good interest and get what you get on the item when you need to sell it. Focus on jewelry or other sales that make more profit than firearms do.

He is getting into a situation (i won't name names) where some new owners took over this business and have to deal with quite a bit of firearms that the old owner just kept from pawn non redemptions. What they are doing since new to the business is maximize profit when getting these guns sold.

I know this because i was called by this business and asked if i could help them consign some of their dealer inventory. Obviously i said i can't because its their dealer inventory.

Not trying to out the OP here either as i think he is just trying to help his new employer.

[acespawnshop]

No I get it Tape, seems like the OP is a good dude just tryin to learn and I've got no problem helping out anybody. But my point was more from a pawn shop standpoint, firearms just don't make much money compared to jewelry sales and such, they would be better off focusing more time and attention and man hours into that.

[9mmContagion]

The only possible way to do it:

- Contact the person who received the loan
- offer incentive to come back in, pay off the loan, return to owner via DES, and then put it on consignment or PPT the firearm.

If I’m correct, I believe the store owner could even purchase it from the customer. I could be wrong, but Aces will chime in I’m sure.

[acespawnshop]

Let me offer a little insight into the pawn industry. This happened yesterday.

We called a customer who had a loan default and we called to see if they were going to come in and pay for an extension or pick it up (we are NOT required to do this)

Ring Ring Ring.....Hello, can I speak with "generic pawn customers name here"?

Yeah, who is this?

This is Aces Jewelry and Loan calling you about loan ###### and we were trying to see if you wanted to come down and pay for an extension or pick up your pawn.

Click......

Hello?

Hello?

Guess they're not coming down.


That being said, again its a time management thing, and how much do you care to "incentivize" somebody to come back to you for that whole headache. Again this is a time management thing for us. But that being said, if you could get a customer to come down, fill out all the BS, wait 10 days, return, then do more BS to do the consignment, wait another 30 days before you can sell it, then take more time doing the PPT process when you sell it and wait another 10 days to do more BS for it to be picked up, then yes, it would in theory work. But I just don't see how that could be a viable solution.

Once you factor in what your time is worth, how much you are going to pay the customer ( on top of the money you already gave them and the 4 months its already been tied up) and all the extra paperwork and time to deal with this you would be far better off just selling it on gunbroker. Cut your losses, get your money back quickly and then roll it into a better pawn or buy next time.

Not to mention what you are really asking the customer to do is this.

Hey, 4 months and 10 days ago we gave you a loan for your personal item, and you haven't paid us back. Can you come down here and jump through incessant hoops just so I can make more money off you? To me it would be like pouring salt in a wound. Do everything you can to either get them to redeem it or pay the rewrite. If they wont, then move along and get the thing out of your shop quickly.

How much extra do you suppose you will get on off list pistols by selling them here vs online? Maybe a hundred bucks more or less? Once you factor in employee cost and time into the equation you would be better off just slanging it on Gunbroker.