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Posted: 11/17/2010 7:40:21 PM EDT
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To preface this post, I must state that this not a loaded question (pun partially intended). I am not trying to make a complaint or put forth commentary on the state of used gun values.
That being said, I am a bit new the world of firearms. However, one aspect of gun culture I quickly noticed is that used guns do not tend to depreciate. Given, for rare weapons, or firearms that have grandfathered legality, I can completely understand an inflated price. Additionally, it is logical that brand new firearms –– which are in short supply –– should command a premium. Rather, I noticed that fairly common guns, such as Romanian AK47's, and HK handguns don't appear to lose much value when used. For instance, it seems common to see a WASR-10 in the EE with a price listed that is the same as a 'brand new' WASR-10 from most reputable online gun stores. Granted, buying online presents its own set of logistic costs/issues, but in general I would be more inclined to buy from a licensed store than from an individual. I guess what I'm trying to ask is why used guns command such a premium compared to the depreciation you would see on most other used hobby-products (yes, I realize calling guns a hobby-product is probably not a wise choice on this forum, but for the sake of this post I think it's reasonable.) Why would someone buy a WASR-10 for $380 from a private party, when they could buy the same firearm from a reputable store/website for about the same price? Is this a situation where the gun's used status proves it's functionality? Help me out here folks. 
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People may ask those prices for used guns, but I'm not sure if they are getting what they ask. A lot of those guns sit on the EE a long time.
Many people buy these guns new locally for more than what they would pay on the internet. People may only have prices in mind based on the EE here and what they paid at the local shop, without checking market value on say gunbroker. I just listed a HK MK 23 for sale on the net a few weeks ago. New on GB they are $1750-1800. Mine was less than 500 rounds fired and I asked $1400. No one wanted to pay that price. Finally sold on GB for $1375. I think that's a reasonable depreciation. |
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It really depends on the indivual seller and how quickly they want to sell their gun.
Most sellers are just bored with certain guns and testing the market to see what they can get or find a sucker to pay close to retail on a used gun. Trust me...Used Glocks are not worth $500 + and new ones are never in short supply. |
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The deal is that there are plenty of guns, but also plenty of gun owners, so the demand and supply are fairly relative in terms of equilibrium. About the only thing that really changes firearm price point is from government policy changes or at least anticipated ones, such as when Obama got elected. Otherwise, the gun prices are pretty stable. This stability translates into the used gun market as well. Used guns will drop in price when its' no longer new, but the depreciation go down so much before they stabilize and hold value (against inflation). Part of the reason is that guns are not your regular consumer goods. For one thing, guns are durable goods, if you put 500rd into it, it doesn't really wear out. In fact, put 5000rd into an AK, and it's still got plenty of life left. And the fact is that ammo is expensive, so the gun price factors in relatively little when compared to how much ammo it'll take to wear a gun out. Also, gun sales are somewhat regulated, either through FFL, or go through private sales. Some of the prices you see factors in the additional FFL costs, shipping and sales tax. In comparison, some of the local deals avoids all those costs, so they can command a higher price.
If you want to confirm that used guns do depreciate, just check out gunbroker.com and see that used guns typically sell around 80-90% of new gun but not much lower than that. |
| Lots of folks pay close to retail price for a used gun in a "face to face" sell. If I have a choice of buying a new gun through a dealer or pay the same or close to same price for the same gun even though used but in excellent condition from an individual I'll get the used on every time. In Alabama this is completely legal. |
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Paperwork is not your friend.
+1 to the above, I've paid more in some cases just to get a gun without the 4473 attached. Guns are not typical consumer goods, guns never truly become "un-serviceable" because everything can be replaced, upgraded, or the like. Weapons are not a "hobby", Weapons are our birth right. Never confuse the two. |
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