Pawn shops thrive during pandemic

When the volume on Johnny Mack’s television went out, he turned to one of the oldest professions in the world to replace it: pawn shops.

The payment flexibility of Premiere Pawn & Fine Jewelry on Colonial Drive in Orlando was crucial to him getting a new TV even before the coronavirus pandemic changed everything.

“People [pay] what they can afford to [pay],” Mack said as he stood on the sidewalk awaiting entry to the shop, adding that while he’s being safe, “whatever God has planned is what is meant to be.”

The scene at Premiere has changed since the coronavirus struck Central Florida.

Blue tape set 6 feet apart keeps customers at bay during transactions at Premiere. Only five shoppers are allowed in the building at once, leaving Mack to wait outside on some days he comes in to make a payment.

The precautions have been taken as the coronavirus pandemic, which has shut down some industries, pushes more people toward unemployment and sometimes desperation.

More people have been visiting pawnshops for short-term loans, offering up family heirlooms, wedding rings and even gold teeth as collateral, said Orlando Grafals, who has helped run Pawn Bros on Sand Lake Road for about three years.

“They need some type of income,” he said. “We can’t just give them a hamburger to eat once.”

But as some customers visit pawn shops for loans, many want something to keep their kids busy now that school districts in the region have shuttered, industry leaders say.

That’s why bicycles, video game systems and laptops are among the items selling well, said Josh Davis, president of the Florida Pawnbrokers Association.

“At a time when we are usually

overloaded in Xboxes and PlayStations, we are wiped clean right now,” he said.

Pandemic-related layoffs have pushed some customers to the stores, though federal stimulus checks and tax returns likely kept traffic lower than it would have been.

“Part of the reason we exist as an industry is to help 50 million Americans who can’t go to the bank and ask for a couple of hundred dollars,” Davis said.

Pawnshop loan applications usually slow in March as people receive federal tax refunds, Davis said. But when Florida Gov. Ron DeSantis deemed pawnshops an essential service on March 23, those numbers jumped.

“We didn’t know if they were going to consider us essential or not,” said Todd Isabel, manager at Premiere Pawn. “We are thankful they did.”

“There are ups and downs for everybody and sometimes people run into problems and need help getting by.”

When pawnshops were deemed essential, Grafals said he jumped on Facebook and started doing a public push to let people know they had reopened.

The shop launched a loan program that defers interest for 30 days and offers interest as low as 15 percent after that.

Typically, it’s 10% for the first two weeks of a loan and 15% after that.

The loan amounts can climb fast if people struggle to pay them back quickly, with annual interest rates easily surpassing 100% at most shops.

It’s one reason some people dismiss them as being exploitative.

“We work with them if they need it,” Grafals said. “We are trying to do what we can.”

Grafals acknowledges that some people might feel uncomfortable when they first walk into a pawn shop.

“They sometimes look at us like we are vultures or grave robbers,” Grafals said. “Back in the day, there were some that were horrible. But I try to welcome them and talk them through the process. If they have never been here, I like to show them how easy it is.”