The used gun market has never been larger or potentially more profitable. According to ATF guidelines, any firearm which is over 50 years old is automatically classified as a Curio and Relic; more commonly known as C&R. Vintage firearms are increasing in demand. Even though new gun production is at an all-time high, so is the used C&R and vintage firearm market. Historical data from sources such as Rock Island Armory indicate the price of vintage firearms has increased an average of 10% yearly. More rare firearms have tripled in value in the last 10 years.
Source of C&R Guns
The huge 73 million post-WWII population of the retiring and already retired boomer generation (now in their 60s and 70s) are aggressively selling off their collections. The baby boomers were the single largest generation of firearm buyers and collectors in the history of the U.S. Now this older generation is downsizing into smaller homes, apartments, and assisted living facilities. Limited space, declining health and supplementing retirement income are significant drivers of the massive quantity of used firearms moving out of private collections. This influx of vintage firearms has grown to a 100-year historical high.
What Is Driving Increased Demand?
The firearms market now also has more buyers of R&C and vintage arms than just the Boomer generation. In total, there are approximately 87% more buyers than two decades ago when GenX and millennial generations were just ramping up buying. The 65 million population of GenX’ers (in their mid-40s to early 60s) are now in their prime income earning years and have the money to buy exactly what they want, including some very premium collectable vintage firearms. This segment is the primary driver for increasing prices of higher-tier premium collectable C&R firearms. Much of this generation initially concentrated its purchasing on new firearms, driving much of the AR-15 sales; however, this group’s purchasing has significantly shifted to purchasing more collectable arms or vintage firearms that emotionally connect them to their grandparents’ and parents’ history.
An even larger segment of buyers are the millennials, which represent the largest 72M population of gun buyers who have yet to peak with their firearms purchasing. Millennials have shown to be the largest new firearm buyer segments in recent years; however, uniquely, they have a split interest between modern and nostalgic/vintage arms. When millennials and Gen Z buyers are paired together, they have a growing income and extremely strong love for vintage items. A recent survey from ThredUp indicates that 62% of millennials and Gen Z buyers look to the vintage and used markets before purchasing new. Both these generations focus on the nostalgia, story, history and vintage appeal of older items that differs greatly from the boomer and Gen X preference for new products. Both used and reproductions of single-action revolvers and lever-action rifles are obviously seeing an enormous sales surge.
Reconsidering Used Gun Sales
Until recently, many gun dealers avoided used gun sales, but for many gun dealers, this has become the largest-growing and highest-profit firearms sales segment. A sizable number of boomers are wanting to cash out of firearms, and Genx have a desire to trade up. This is an opportunity for dealers to reconsider buying and selling used guns. With typical new gun margins hovering around 10% and a typical 20% or more markup on used guns, dealers may reconsider offering a larger selection of used firearms.
Used Guns Deliver Variety
One FFL dealer we spoke to who focused heavily on used guns noted that used guns were the reasons customers kept coming back into the shop. “Every dealer in the U.S. has Glocks, S&Ws, and Daniel Defense rifles, but who has a 1950s S&W Model 49 in mint condition, a limited-production gold Desert Eagle, or Walther GSP Olympic target pistol?” he said. “These are the things that keep customers coming back to see what is new and different.”
The marketing demographic of the younger Gen Z and millennial generations of buyers want something unique and different, and the crave the adventure of trying new products. Used guns deliver the same appeal that vintage clothing stores hold for this age group. Used guns deliver something unique to a showcase beyond what every dealer already sells. The dealer we spoke to went on to note that with younger buyers, sales associates need to deliver a great story on the history of the model, and perhaps even the known firearm provenance — that makes a huge difference. He noted, “Selling the most current gun is a bit boring. What makes a customer happy is walking out with not just a gun, but a piece of nostalgia and history.”
Proper Valuation Is Key
Dealers new to the used gun market should use all the tools at their disposal, including the Blue Book of Gun values and the Dealer historical sales data on Gunbroker to understand the sales prices of particular models. Most dealers segment used guns into some type of valuation categories such as Rare & Collectable, Vintage, Unmodified, and Altered/Modified.
Rare, Unusual & Collectable
Though many 50+ year-old C&R firearms fall into this category, obviously, not all old C&R guns are valuable, collectable or rare. Notably with younger buyers, there may be nostalgic value in otherwise lower-value firearms. One younger shooter I met was very proud of a $100 Sears model 35, and he was thrilled to espouse the history of Sears firearms.
Very low-production guns such as Walther GSPs and H&K P7s are gaining significant valuation increases. The rarity of many modern low-production guns has proven to deliver high retained value, including Desert Eagles and S&W revolvers. In the tactical markets, Sig MPX, Steyr Aug, H&K MP5/SP5, and FN PS90s have all proven to retain or exceed MSRP due to the rarity of these firearms.
The term “vintage” is widely described as 20 to 50 years old, which in modern terms could describe a Gen 2 Glock but could also describe a Ruger P95. Notably, many younger buyers are buying these guns for the experience at a very inexpensive price; however, the prices are now trending upward on these previously common guns.
Altered/Modified
Generally a factory-standard “stock” gun will retain the most value; however, there are exceptions. An example of retained value loss would be the way the recent customization trend for Glocks has pushed many dubiously DIY-modified used Glocks with questionable reliability back into the used market. Conversely, used Glocks that include both factory and upgraded parts may command a premium. The DIY customization trend of 1911s and revolvers a few decades ago taught dealers that upgrades typically do not equate to increased resale value unless they are completed by well-known professionals.
Final Thoughts
At twice the margin and often half the financial outlay, used guns can deliver variety, a regular customer traffic, and service a new set of gun buyers who are not necessarily looking for shiny new black plastic, but instead scratched, weathered from decades of use and a good story that makes them interesting. If you can connect older customers selling off their collections with younger generations who have a fondness for vintage goods, and you buy and sell at the right price, you can make handsome margins in the C&R market.
