National Pawnbrokers Association Trend Survey Indicates Rise In Millennial Pawn Shoppers
The National Pawnbrokers Association (NPA) announced today the results of the NPA 2016 Trend Survey, which assesses how changes in the American economy and trends in collateral lending have affected the pawn industry since the beginning of 2015. An examination of pawnbrokers’ customer demographics helped determine that Millennials, the largest generation in the U.S. population, now account for a significant portion of pawn customers.
The NPA Trend Survey canvassed pawnbrokers from across the U.S. to collect a broad sweep of information, from the national average pawn loan amount, to data pertaining to cash for gold transactions and pawn customers’ ages. For the majority of pawnbrokers surveyed, consumers age 27 to 35 now make up over 40 percent of the average customer base for pawn stores, with the second largest age group consisting of customers aging from 33 to 40.
“While the average pawn customer is 36 years old, we are seeing an increase in younger consumers turning to pawn stores around the country,” said Larry Nuckols, president of the National Pawnbrokers Association. “Although the economy has stabilized more recently, Millennials are still confronted with growing economic uncertainties and fewer opportunities than previous generations. They are attracted to pawn stores’ unique form of non-recourse, collateral lending.”
Data gathered from the Trend Survey also indicates that the national average pawn loan amount continues to hold at $150. The average redemption rate, or the number of pawn loans that are repaid in full, remains at 85%, which is consistent with the national average from previous years.
Pawnbrokers saw a continued decline in cash for gold transactions in 2015, due to ebbing gold prices and a steady economic recovery which has slackened the gold market. However, pawn loans still make up the core of their business, about 86% according to the survey.