Struggling economy good news for pawn shops

by Leanne Tokars (ltokars@wsbt.com)

Tools

Local pawn shops say they are seeing an increase in customers looking for cash to help pay the rising cost of gas

Local pawn shops say they are seeing an increase in customers looking for cash to help pay the rising cost of gas. (WSBT photo)

By WSBT News1

Story Created: May 2, 2008 at 2:00 PM EST

Story Updated: May 2, 2008 at 4:10 PM EST

SOUTH BEND — The struggling economy is good news for some pawn shops. Many local stores say they're seeing a jump in customers looking to make some quick cash.

Several employees say the number one reason they’re seeing more people is because of gas prices.

For some, it’s become a desperate situation.

In the last six months, Jeff Jones at Worldwide Jewelry and Pawn in South Bend has noticed a difference.

“I’ve seen quite a few new customers,” said Jones.

He says more people are bringing in items to pawn.

“About anything of value — musical merchandise, jewelry, electronics, tools, automobiles,” explained Jones.

He says he hears many people say they need the money to pay for gas. It’s why Lemar Bradley came in Friday.

“Since the gas went up, I've pawned stuff twice now,” said Bradley. “This will be the second time."

It's all about making ends meet with skyrocketing prices at the pump.

“It’s killing me,” exclaimed Bradley. “I'm tired of it. It needs to go down instead of going up."

It's the same story at Koach's Kash Station in Mishawaka.

“I need money for gas is what they say,” commented employee Josh Graf.

In the backroom at Ozark's Pawn Shop on Western Avenue in South Bend items line the shelves.

Owner Vendel Vegh says about half of the owners will return — using the money for now as a loan.

It's something he sees more of when times are tough, but this time he exclaimed, “More than usual — a lot more than usual."

In fact, he says three times more than what they usually get.

And he says it's the same story for 10 to 15 customers each day — they need gas.

Some, he says, are at their breaking point.

“Some ladies come here crying too because they can't get to work because no gas in the car,” remarked Vegh.

Pawn shops also say they're seeing more people who have been laid off in need of money.

The Associated Press found that many people are also looking to the Internet to afford the rising cost of gas, food and medicine. They’re selling more items on sites like Craigslist.

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