Are you considering a collateral loan in San Diego, CA? One of the most popular methods of obtaining this type of no-credit-check loan is by using fine jewelry or a luxury timepiece as collateral. California banks won’t secure a loan of this type, but San Diego pawn shops are based exclusively on this model.
Although some pawn shops in Southern California have improved their reputations in recent years, many people with high-brand diamond jewelry and Swiss watches remain resistant to the idea of approaching a San Diego pawn shop for a personal loan.
So, let’s examine collateral loans more closely to evaluate your options in San Diego County. If you are looking to obtain a large collateral loan for an item such as a Cartier diamond necklace or Patek Philippe wristwatch, the two biggest areas of concern are likely the location and expertise of the San Diego pawnbroker.
In San Diego County, some pawn shops are located in old commercial areas that show signs of neglect, and are filled with a mixed bag of un-redeemed collateral ranging from tool sets and mountain bikes to fishing poles and firearms. While these same San Diego shops may have a large amount of gold & diamond jewelry displayed in their showcases, the items tend to be mass market jewelry which has been pawned strictly for the melt-down value of the gold.
In recent years, some California pawn shops have improved their image, focusing on better customer service and a newer, cleaner appearance. This has resulted in the evolution of a more professional looking breed of pawn shop in San Diego County. These San Diego pawn shops may be located in a better part of town, with a staff that is more appropriately attired and oriented toward friendly customer service.
However, as long as these San Diego pawn shops are still dealing in firearms, televisions, lawnmowers, and other miscellaneous items, it is difficult for them to serve clients who want to use a prestige watch or large carat diamond ring for a collateral loan—as appraising the full value of these items requires a great deal of expertise.
Pawn shops are not your only option for obtaining a San Diego personal loan with luxury collateral. There are businesses in San Diego County (such as Diamond Estate Jewelry Buyers), who offer discreet personal loan services and specialize in large collateral loans on high-brand jewelry and valuable watches.
At a typical San Diego pawn shop, your luxury item is assessed by the owner or the owner’s staff. If they are interested in the item, they will offer you a collateral loan. The size of this loan and how it is calculated is a key difference between a typical San Diego pawn shop and a luxury collateral lender like Diamond Estate Jewelry Buyers.
The typical San Diego pawn shop is both a collateral lender, and a retail store. For this reason, they are looking at your jewelry or watch as a potential inventory item. As such, they will want to offer you roughly half of its wholesale value, or about one fourth of what they can re-sell it for in their San Diego store. A high-end collateral lender like Diamond Estate Jewelry Buyers, however, will offer closer to the full wholesale value of your fine jewelry or timepiece.
A San Diego pawn shop’s collateral loan is much lower because of its business model, which is designed to make money two ways: 1) on the interest you pay on your collateral loan, and 2) on the profit margin they’ve built in should you fail to redeem your loan and forfeit your item.
A luxury lender like Diamond Estate Jewelry Buyers offers collateral loans closer to the full wholesale value of your diamond jewelry or timepiece, because its business model is based on earning money solely from the interest you pay on your loan, rather than the sale of your item should you fail to redeem your loan.
You therefore can expect to obtain a much larger cash loan (often up to 100% larger) with the same item of luxury collateral if you pawn it with Diamond Estate Jewelry Buyers, as opposed to a typical pawn shop in San Diego.
Then there is the issue of expertise. If the pawnbroker evaluating your luxury item is trained to evaluate all different kinds of collateral ranging from handguns and computers to fishing poles and tool sets, there is a good chance that when it comes to appraising your Rolex watch or large carat diamond, they will want to “err on the side of caution.” That means if they are not 100% sure of your item’s true current market value, they will offer you a smaller loan to remain on the safe side of the equation.
This collateral loan offer is then reduced even further when the pawnbroker takes into account the general “loan half of wholesale value” rule typical of most San Diego pawn shops. This is why so many consumers say things like “ridiculously low offer”, or “pennies on the dollar,” to describe some San Diego pawn shop experiences they’ve had in the past.
However, a luxury lender such as Diamond Estate Jewelry Buyers employs a staff whose expertise is strictly focused in the area of diamond jewelry, antique jewelry, and fine watches. They know exactly how much your precious gift asset is worth, and will sometimes loan you as much as 100% of its wholesale value.
“The reason for this is two-fold,” says Carl Blackburn, owner of Diamond Estate Jewelry Buyers, “One, when we know exactly what an item is worth on the current market, we can be very precise and correct on our San Diego loan offer; and two, since our business model does not depend on making a profit on the sale of your item should you fail to redeem it, we can loan the full wholesale value of it.”
“In a sense, we offer the best of both worlds as both San Diego jewelry buyers and collateral lenders,” says Blackburn. “When we act as a jewelry buyer we buy your item directly and pay you the highest amount of cash for it. When we act as collateral lenders, we provide you with the most professional, courteous, and safe environment in which to obtain a large collateral loan at interest rates lower than those levied by typical bricks-and-mortar San Diego pawn shops.”
Contact Diamond Estate Jewelry Buyers now to take advantage of their free expert evaluation and obtain the highest collateral loan in San Diego, CA.
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