The gun market as I understand it

[stiletto raggio]

Here is the gun market--from the consumer/collector/user end. If you plan on getting anything more than half of your money out of it, you had better be sticking to handguns and military-type rifles and shotguns. The market has simply dropped out of the bottom of "sporting" rifles. I first started to figure this out when I saw gun dealers who would only buy used guns if they were handguns or "assault weapons."

The reason is simple: you can only do so much with a bolt-action deer rifle. How much better is a .270 WSM in stainless and synthetic than a blued 7mm Rem with a wood stock? If you already have the latter, you probably need a very good reason to get the former.

On the other hand, if you already own a 1911, why are you going to get a Glock 21? Because they are different shooting experiences. Same goes for buying an AK when you have an AR (or three) already. This means that gun dealers are more likely to sell on that they buy off of you, so they are willing to pay more. Also, because the racks are already flooded with "outdated" sporting guns, if a gun dealer decides to buy yours, it will be at rock bottom prices.

Now, there are significant exceptions to this generalization. High end guns--Holland and Holland down to the nicer Berettas--will sell for a greater amount of their purchase price. Collector guns like SAAs and Lugers will sell at or higher than purchase price because demand is high and the supply is super-limited.

I look at my own spending habits and see it reflected. Once I got a .300 and a 45/70, I didn't feel the need to pick up another "hunting" rifle. I suppose that some guys do acquire dozens of sporting arms, but they are few and far between compared to the specialty collectors: handguns, combat rifles and tactical shotguns are selling wildly.

Am I off my rocker here? I know the gun rags give a lot of press to the new cartridges and fancy features of the hot new super-mag hunting rifles, but how many 700s is one guy really going to buy? I have nothing against sporting rifles and shotguns so long as the buyer doesn't expect to get much money out of them if they sell. If you have your hunting bases covered, though, it seems you money is better invested in something deadly and black than a new deerslayer.

 

[GreenFurniture]

You're not too far off base from where I'm sitting.

We get people who come in with their Weatherbys, Remington, Winchester, fill-in-the-blank hunting rifles and they are down right miffed when they are offered about 1/4 of what they think their rifle is worth.

The sad truth is that the "hunter" is far more likely to buy this years "gotta have it 'cause it's the only thing on the market that will drop that Muley at 1000000 yards and what you're using now is crap" gun that that magazines scream about than to keep what they've used in the past.

In other words they'll trade their rifle every year and hope to get what they paid out of it. Doesn't work that way.

Another thing is that the majority of the gun buying public thinks that dealers are getting 50% or better for the guns in their cases. This is not true. You're lucky to get 3% on a new gun and 10% on a used gun. Therefore you must sell the weapons that turn over quickly and make what you can on volume.

 

[Sunray]

You'll find that commercial hunting rifles hold their value extremely well. Most increase in value over time. It's tied to the price of a new hunting rifle. A new 700 BDL lists at $877 sans scope. Add a few hundred for a good scope and taxes and your at about a grand. In 1973, that same rifle listed at $174.95(I knew I kept all those 'annuals' for a reason). Try and buy a used 700 for that.
"...how many 700s is one guy really going to buy?..." Lots of shooters are brand faithful. Just like they are with vehicles. They'll buy a 700 for hunting deer, one for varmints, another for large game and sometimes, for reasons unknown, one for dangerous game that doesn't live anywhere near them. I suspect it's for that 'some day' African dream hunt.
The 'specialty collectors' are caught up in the marketing hype. There's no such thing as a 'tactical' firearm of any kind, but the marketing types have created the demand. The marketing buzz word used to be 'Police'. Every manufacturer had a 'special' police rifle and/or shotgun. Same firearm with a different finish. Remington is still doing it. I must admit that the oil stock finish and phosphated/parkerized steel is better, but the firearm is identical to the hunting version.
Dealers will take a battle rifle in trade because they know it'll sell faster than a used Rem 700. Except just before hunting season. Handguns are shot more than rifles by target shooters etc. However, you'll find dealers are particular what handgun they'll buy or take in trade for the same reason. How fast it'll move.
I know a guy who has a Sako in every magnum calibre they come in. Asked him why one day. He said just to say I have them. He didn't have any milsurps or battle rifles last time I saw him.

 

[22-rimfire]

Pricing trends match market demand and pricing or used rifles and handguns frequently reflects the price of a new one. In the early 1990's, it was hard to sell a revolver. Not so these days if it is a quality piece. There are other considerations in pricing of course. Colt handguns are a classic example as the value has been rising quicker than most other handguns as a group. Colt is not making them any more (at least revolvers), but pricing also reflects what a new Smith & Wesson runs, as well, as you ponder the price tag on a as-new Python or Diamondback.

I agree generally with you on the "hunting rifle" statements relative to buying lots of them. Prior to the interest in the black rifles, people who shot bought "hunting rifles" for the same reasons you mention for today's black rifles. The black rifles are just in favor these days. That will change.

If you look at the value of a well made hunting rifle, it's value has held fairly well. They just tend to be seasonal. But you probably would have made far more money with a CD than the appreciation on most rifles.

I don't shoot rifles that much, except for 22's. They are my first love and will always be near and dear to my firearm preferences.

 

[evan price]

That's not really a revelation when you consider that any used market does the same thing. Cars, electronics, furniture, etc. In order to turn a profit you have to buy low and sell high. Just 'coz a brand new Thumpinboomer in .22-250 sells for $700, doesn't mean your like new identical rifle is worth $600. When's the last time you bought a car? Do they offer you sticker for the trade-in? How 'bout anything like what identical cars sell for in classified ads?

I dunno, IMHO, buying things like guns or cars for "investment" purposes sounds like no fun. Buy what you want to use and take it out and play with it. It kinda bugs me to see people spend 6 figures restoring a car and the only time the wheels turn is on and off the trailer.

 

[ScotZ]

Glad I love my 35+ year old Rem 700 30-06. I consider it a piece of art never to be sold. Its finish seems a mile deep just like when it was new. I guess beauty is in the eye of the beholder or in this case value is in the eye of the beholder

 

[JohnBT]

"...how many 700s is one guy really going to buy?..."

I honestly don't know, but anything is possible. I do know that a local shop has one customer who has bought 17 Coopers from them so far.

John

 

[Maxinquaye]

Guns, to me at least, are in no way an investment. That said, I don't think TOO hard about new gun purchases because if I decide to get out of it and put the money toward something else, I'm not gonna lose all that much on resale....couple hundred bucks at most. Sometimes when you trade instead of outright selling, you even come out ahead. Add to the equation the fun I had shooting the item in question when it was in my possession, and I come out ahead

 

[Gene Beasley]

In 1973, that same rifle listed at $174.95(I knew I kept all those 'annuals' for a reason). Try and buy a used 700 for that.

Depending on how old the trade-in is, you have to take inflation into account. That 174.95 in 1973 dollars is 772.45 in 2005 dollars - not far from the going price for a new BDL and certainly within range for a scoped used one.