How does gun consignment at pawn shop or gun shop work?

[AirPower]

I been to couple local pawn shops and gun shops on several occasions, pawn shops are the worst. Ratty guns with high prices, but when I inquire about selling them one, or consignment, my guns become worthless. I didn't get into details with them, seems waste of time, but I"d like to know more. So how does gun consignment work exactly? Do you suggest a price to put on the gun and then the shop splits difference with you, or you have a min. price and the shop makes whatever on top of it?

 

[bcochran]

consignment

Of course, it depends upon the policy of the shop.

You do have an alternative. You can go to gun broker or GunsAmerica. Publish your number and address and restrict sales to local people who you will invite to call and/or visit you so that you do the work of display (and entertaining the lookie loos).

You can share a both at a gun show.

You can advertise in the local club to which you belong. You do belong to a club, don't you?

I sold two guns today to a member of my club. Advertised in the club internet site.

 

[SouthpawShootr]

I've only sold one on consignment and here's how it went. Took the gun and any accessories (mags, box, cleaning kits, OWNER"S MANUALs, etc) to the shop and told them I was interested in selling on consignment. I had a pretty good idea of what the gun was worth vs what I had in it. Told the shop owner how I wanted to price it (he agreed with my assessment that it should sell in a reasonable amount of time - I imagine he would have suggested a lower price if I was pricing too high). Filled out a form/contract where the shop would sell my gun in exchange for 10% of the purchase price (not including taxes & b/g check fees). Then I left and waited. The shop entered the gun in their bound book andsold it as a consignment weapon. About a month later, the shop called told me the gun had sold and told me to come pick up my check. The new owner has no details about me and that's the way I wanted it (I really feel uncomfortable for somebody to come out to the house for a private transaction). Most importantly (to me) is that this transaction was done in a fully documented fashion and I'm 100% sure that the guy who bought the gun had no criminal record. If the ATF shows up at my door saying the gun was used in a crime and wanted to know where the gun was, all I have to do is point them in the direction of the gunshop where it was sold on consignment and my involvement ends.

 

[joab]

My shop does it the same way as SouthpawShootr's

I usually just trade my for store credit. In that case he figures what he will sell it for minus 20 or 30 %

I actually get a better deal doing it this way sometimes, especially if I'm trading for a used gun

 

[XLMiguel]

My shop does it the same as Southpaw's, though they take 15%. It's worth it to me for all the same reason, plus the shop is very helpful at pricing, evaluating, etc. Most of mine have sold in 2 - 6 weeks, usually at my asking price. So far, so good.

 

[Jim K]

I usually work it a little different. I tell the dealer what I want for the gun. He can then sell it for whatever the traffic will bear. If he makes out well on the deal, fine; I get what I want, and he is happy. If he thinks my price is too high, we discuss it.

Obviously, I could make a real boo-boo and say I will take $100 for that silly old gun made in Paterson, NJ (doesn't even have a trigger!), but that has not happened yet.

Jim

 

[jefnvk]

The way that I did, I took the gun and accessories to the store, told them that I wanted so much for it. Tehy gave me a receipt. They then stuck it on their shelves with a bit more added to the price tag. Anything they made over the price I specified they got to keep as profit. Never seen how much more they ahd on it, but since it went not too slow, I trust they didn't try to get an extra $100 out of it.

 

[Dean C]

Question: If sold on consignment, is it a sale between the gun dealer and the buyer or is it between the seller and buyer? Being from WA (land of taxes) we are taxed approx. 10% on a retail sale. If from a private pruchase no tax. If the dealer sells on consignment for 10% plus any transfer fees, would the purchaser pay tax on the fees or the full purchase price? After all, it's consignment and you are bying from the seller only through the dealer.
dean

 

[SouthpawShootr]

An interesting question. The answer is I don't have the first damn clue. This is considered a retail transaction in VA and the shop must collect sales tax from the buyer on the consignment item sold. The gun is put on the shop's books just as if it were one of the shop's own guns. The transfer is carried out exactly the same as with any other gun in the shop's inventory. You can also go back into the shop and get your gun back anytime prior to somebody else saying "I want it." Kind of a strange setup.

 

[MikeIsaj]

Being from WA (land of taxes) we are taxed approx. 10% on a retail sale. If from a private pruchase no tax.

Check your local law, I think you'll find this is not true.

In Pa., tax is due on any sale, private or retail that occurs in the commonwealth. On private sale items the tax is legally due, we just don't pay it because the transaction is not visible to the state. Most private sales don't get state attention because there is no required documentation. Sell a car privately and you will be required to pay the tax when you title it.

Consignment sales in general are done on a commision basis. The broker gets an agreed upon percentage of the sale however you and the broker are free to negotiate any deal you want. I would not agree on any more than 20%. I think the key here is to have a reputable gun shop. Finding one of those apparently can be the hardest part of the deal.

 

[Jim K]

For guns, the dealer must pick up a consignment gun on his FFL "bound book", and record its sale just as if he had purchased it outright. The regulations require him to show an entry for any gun in his store. The dealer must also collect sales tax, etc. AFAIK, the laws of all states work basically the same way, not only for firearms but for any consignment sale.

But in some situations, there is no consignment. One would be the system used in antique malls, where the seller rents space and the mall acts as an agent in taking money and passing it to the seller. The mall never has legal possession of the item; like an auction house, they are only acting as an agent.

It is the difference between "I GIVE you something to sell for me" and "I rent space from you to DISPLAY MY PROPERTY and handle a sale as my agent."

Jim