Would you ever pawn a Birkin Bag? While the idea may sound almost crazy, many fashionistas do!
Luxury bag pawning has recently been trending, according to The New York Times, especially in high-quality pawn shops like the New York Loan Company. Sitting behind highly-secure entrances among jewelry by Harry Winston and Van Cleef, as well as art by the likes of Andy Warhol, many a pawned Birkin (and Kelly!) can be found. So what’s the deal behind all of this Birkin pawning?
First, quick recap on how pawning works: at a pawnshop, you can use your valuables as collateral for an immediate loan. The pawnshop sets a certain date by which the money (+ interest) must be paid back. If the seller meets the deadline, he or she gets their valuables back. If not, the pawnshop owns the item and can rightfully sell it to others. People often use their Birkins for such a loan! Sometimes, they just need cash asap or fast money for an investment. Often, they don’t repay the shop in time and end up losing their bag.
The New York Times recently profiled third-gen pawnbroker Jordan Tabach-Bank, who owns high-end pawnshops New York Loan Company and Beverly Loan Company in LA. Pretty soon, another location will open up in Chicago.
Some differences between the New York and LA clients? New Yorkers are more often business people rather than the Hollywood milieu. And New Yorkers prefer neutrals, while those from LA opt for bright colors.
While Tabach-Bank’s pawnshops also give loans for Chanel bags in pristine condition, they far prefer the classic H bags. Birkins and Kellys are obviously more valuable, and on average tend to fetch about $4,000 pawned.
How do these pawnshops deal with fakes? Well, there are obviously rather high-quality counterfeits. “I bought a fake, and if you haven’t bought a fake, you haven’t been dealing in enough bags as far as I’m concerned,” Tabach-Bank told the New York Times. Now, he is very careful, making sure to examine the stitching, stamps, and weight of each bag. (Read: How to Spot a Fake Designer Bag 101 Guide)
What do you think of getting a quick loan or making fast money by pawning your beloved bags? Would you ever buy a discounted Birkin at a high-end pawnshop? Tell us your thoughts on the whole process in the comments!
Read related articles below:
Updated: August 29th, 2017