Gun show purchase - trade or cash

[lee n. field]

Say I find what I want for $400. I have a Taurus PT92 to trade ~ the closer to $200 I get, the happier I'll be. Question is, will I do better taking my trade with me or just carrying cash? I have a local fellow who'll give me $185 for it. Should I just sell it off to him and take the cash in? Will cash "talk" where trades might "walk"?

I would hope you'd get more than that for the Taurus.

Cash. Everybody likes cash.

 

[Hokkmike]

I have purchased 3 or 4 guns from gun shows. ALWAYS dicker. Some people do go down in price. Trades are usually a bad deal. (experience) Cash is best. People are at gun shows to sell so SOME will negotiate if you don't appear to be over eager.

 

[doorman]

I did a trade/purchase in December. I did notice that the guns that the dealers were selling (many had the same brands and models) were about $20 to $30 cheaper than I could find at the local gun shop. I did the trade because the traded gun had a bad double feed/jam problem so I was happy to see it go.

The prices that were quoted were the cash price. If you wanted to charge the purchase to a credit card then there was a 3% upcharge.

 

[Quoheleth]

Thanks, all, for the advice.

So...down to brass tacks...

What do NIB S&W MP9s go for these days at gun shows? Academy has them in Houston area for $500; Carter's for $580; Tomball Pawn for $460(ish).

What about used Ruger Sp101 (.357), either barrel length?

Am I pipe-dreaming to hope for either one of these near the $400 mark? New MP9s are available...I've only seen one used SP101 in six months of searching, and that one slipped through my fingers...just couldn't scratch $358. Got a little Christmas money stashed away...ready to burn...

Thanks,
Q

 

[Mojo-jo-jo]

Can't say on the M&P, but you should be able to find a used SP101 for $350-$450. I haven't really been looking recently, but haven't seen many either.

Actually, I've noticed that there are fewer used handguns around recently in general.

Trade vs. Cash:
Don't expect to get a good trade value from a dealer at a gun show. I've always been very disappointed, but made the deal sometimes if it was something that I really wanted vs. something I really wanted to get rid of.

Cash vs. Credit:
Like others have said, gun show prices aren't necessarily good. Know what you are buying is worth, and check your local stores before jumping on it at a gunshow. If I'm looking for something specific at a show, I bring cash to cover it. I'll try to make a deal, but in my experience, most dealers won't budge, even when the guy across the aisle has it cheaper.

Many dealers charge extra for credit card. I'm kind of a jerk, and try to get a "best cash price," but if they won't come down and don't charge extra for credit card, then I charge it anyway (I like my cash back rewards).

Additionally, smaller dealers, private sellers, and some "gun show junkers" (those tables that have a little of everything, usually beat up, but sometime you find a gem) don't usually take credit cards.

 

[che_70b]

About the credit card use fees. I understand the reason behinds doing this (the CCC charging the dealer a fee), however I have noticed that, localy at least, it is only gun stores that do this. I have also noticed that not all local gunstores do this. I am wondering if someone who is more knowledgeable on this can explain why some FFLs do this while others don't and no other local business that I know of does. I do know of business that have a minimum purchase to use a card (usually 10$) but I have never bought a gun that did cost more than that .

 

[Cannonball888]

I bring stuff from home to trade. I can usually get an even trade on my peppered and smoked jerky for the plain teriyaki.

 

[Mojo-jo-jo]

why some FFLs do this while others don't

Simple -- profit margin. New gun sales are usually only at about a 5% margin. If the credit card company charges the merchant a 4% processing fee, that would eat up most of their profit.

At a margin this low, a gun dealer is generally only grossing about $20-30 on the sale of a gun. If the the processing fee (4%) on a $500 gun is $20, most, if not all, of the merchant's profit is lost on credit card fees.

Why just gun dealers? Other types of merchants usually make MUCH more than a 5% margin. I used to work for a hardware store franchise, and our average margin was about 50%. Discount retailers like Wal-mart usually make about 30% margin.

Wholesale prices of guns are very high compared to wholesale prices of many other goods. Guns are expensive and complex to produce, have an imposed federal excise tax of 11%, and thanks to frivolous lawsuits and legislation the liability insurance rates for gun manufacturers is through the roof. This is passed along to the retailer in the form of high wholesale price. However, the demand price (price the consumer is willing to pay) is still fairly low.

That said, many of the stores that take credit cards without fee deal mainly with USED guns. There is a much higher margin on used firearms. This is why the dealer at the gun show will only give you $300 in trade for your $500 Glock. If the dealer can turn around that used Glock for $429, he just made 30% margin on that sale.

 

[biggiesmalls]

IF you have some individual who wants to buy your trade out right and a dealer is offering the same amount off for a trade, then i would go with the trade because you only pay taxes on the difference. of course, this only happens if the dealer is giving you a damn good price on the trade or if the individual buyer has talked you down a lot on your asking price, or maybe you're just asking too little to begin with. but most of the time even if you buy from a dealer and have to pay taxes, you're still better off selling your gun first and then going to the dealer with cash because the amount you would have saved on taxes is still less than the difference between a sale and a trade. did i say all that right? lol

 

[scbair]

Sell to another attendee; if it's in good shape, you'll get plenty of offers.

I had a funny moment at one show; I passed a table manned by some folks I'd watched in action at previous shows (and who had thereby earned my utter contempt for their behavior & outright deceptive statements). One of 'em asked, optimistically, "Whatcha got in the bag?" As it happened, I had a Colt Detective Special, excellent condition, in the backpack I carry to shows (I'm optimistic, too . . . ). I ordinarily wouldn't have even acknowledged his question (I have neither time nor patience for liars). However, as I had scanned his wares, I had noticed something, so I put on my most gullible smile, withdrew the Colt, and handed it over for his inspection.

He eagerly inspected, then asked, "How much?" I named what I considered a fair price. The dealer declared that it was a nice revolver, but the prices of Colts weren't as high as they had been, folks had inflated ideas of their worth, etc., etc., and countered with a much lower amount (big surprise! ).

I looked suitably confused, pointed to an identical Colt Detective Special on his table with a price tag NEARLY THREE TIMES his offer for mine, and innocently inquired, "What is the difference between this 'un and that 'un??"

Dealer looked confused, muttered something about "It's a different variation . . ." as I retrieved my old Colt, laughed (loudly, to my shame ) and strolled away. Later sold it for my price to another customer at the show.

 

[logical]

The sales tax trick may be true in TX, but not in many other states. In many states, the trade-in reduces your sales tax basis for cars, but nothing else. In Michigan, it doesn't even work for cars.

 

[welldoya]

SCBAIR, a similar thing happened to me earlier this year at a gunshow. I had a Python in very good condition for sale. Of course as soon as a dealer saw it, he wanted to know how much. My asking price was $800.
One dealer near the door asked me how much and I told him. He looked offended and just waved me away. Now, my gun was probably somewhere between 90% and 95% condition. The dealer had an 85% condition .38 Diamondback for sale for $900. I told him good luck on your Diamondback.
So, my 95% Python wasn't worth $800 but his 85% Diamondback was a bargain at $900.

 

[JimmyN]

When trading the seller will have two values he's working with, what he can make on your purchase, and what he can make on your trade-in when he resells it.

It makes it difficult to tell how much you are actually paying, or getting on your trade-in since he has margin at both ends, and can shuffle the numbers around to appear better than they are on one of the items.

So you should handle it just like any other trade, such as buying a new car. Initially there is no trade, it's a cash (or credit) deal. Then you will know exactly what you are paying for the new item. Once that is settled THEN you decide to bring your trade into the deal, and you will know exactly what you are getting for your trade-in as well.