SAN DIEGO — Pawn shops have always been a good barometer of how the economy is fairing on the real main street of a city, and according to pawn shop owners, business is booming.
“It’s been crazy, I haven’t seen this type of crazy since the last recession,” said Moris Adoto, the president of CashCo Pawn Shop.
While people selling or pawning their goods in droves is not a good sign for the economy, Adoto claims this cycle of pawning is far different than during the great recession of 2008-2011.
Adoto says in the Great Recession, everyone was simply selling everything they had for fast cash, but in this market, people are pawning their things hoping to buy their prized objects back within six months.
“We have people with emergencies that come in here. They have a flat tire and they don’t have the savings. Mortgages are due, rents are due, so everyone is coming in for everything,” Adoto said.
The major difference is people aren’t in panic mode, they simply need a bridge to get back to normal, with the expectation things will turn around.
“It’s a weird time, but it’s not doomsday time. I think we are going through a dip. I’m sure it will come back again, but it will take a little bit,” Adoto said.
Currently, if you pawn your item you will have to pay roughly 4.5% monthly to eventually get the item back. The interest rate is far lower than any check-cashing outfit.