This is a complex question that doesn’t have a simple yes or no answer. There are many factors that determine whether a gun will decrease in value over time or potentially increase in value and become a collector’s item. In this article, we’ll explore the key considerations around guns losing or gaining value after purchase.
Depreciation of New Guns
In general, new guns tend to lose some value once they are purchased and leave the store. This is because there is an initial depreciation that occurs as soon as the gun transitions from being a “new” gun to a “used” gun.
For example, a brand new pistol may retail for $500 at a gun shop. But if the original purchaser then immediately tried to resell the pistol on the used market, they would likely only be able to get 70-80% of that original $500 price. This is because the pistol now has a first owner and is no longer in untouched “new” condition.
This initial depreciation varies based on the type and quality level of the firearm:
- Higher end pistols, rifles, and shotguns tend to hold their value better than lower quality budget firearms.
- Custom built firearms also tend to depreciate less than mass manufactured guns.
- Rare and unique firearms may actually gain value right after purchase if demand outpaces supply.
But in most cases, an “out of the box” new gun will lose 20-30% of its value as soon as it leaves the store with its first owner.
Depreciation Slows Over Time
While that initial depreciation is expected, guns do not necessarily continue to lose value quickly after the original purchase. The rate of depreciation tends to slow down significantly after the first year of ownership.
In fact, many firearms may retain 60-80% of their original value years or even decades after purchase provided they have been properly maintained. Collectible firearms that are no longer manufactured may actually appreciate in value long after their original purchase date.
This slowing of depreciation over time means that guns are not necessarily a horrible investment compared to other retail products. For example, a new car can lose 20% of its value just in its first year, and will continue to depreciate rapidly in subsequent years.
With proper maintenance, firearm depreciation slows after that initial dip. And rare collectible firearms may actually gain value over their lifetime and can be considered investments.
Factors That Impact Depreciation
There are several key factors that impact how much a gun will depreciate after purchase:
Firearm Type
As mentioned above, certain types of firearms hold their value better than others. This includes:
- Higher end pistols, rifles, and shotguns from premium brands
- Rare and collectible firearms with historical significance
- Custom built firearms
- Military surplus firearms
Budget firearms from less known brands tend to depreciate more rapidly and steeply.
Firearm Condition
The physical condition of the firearm also matters greatly. Guns that are scratched, rusted, or damaged will depreciate much more than firearms that have been well cared for.
Firearms that are truly in “like new” shape with perfect finishes and mechanics can sometimes actually appreciate in value as collectibles long after purchase.
Customizations
Any aftermarket customizations made to a firearm will also impact its value. Some simple upgrades like adding night sights may maintain value. But drastic customizations like cerakoting finishes can negatively impact collectability and aftermarket prices.
In most cases, firearms remain most valuable in their original factory configuration if looking to maintain value over time.
Historical Significance
For collectible firearms, their historical significance is a major driver of appreciation and depreciation. Guns that have historical connections, were involved in major wars or events, or are linked to historical figures tend to gain value.
Whereas firearms lacking any historical provenance face greater depreciation pressures.
Ways to Reduce Depreciation
While some depreciation of a newly purchased firearm is inevitable, there are ways gun owners can reduce value loss over time:
- Properly maintain and care for the firearm
- Keep the original boxes, manuals, cleaning kits, and accessories
- Only make upgrades or modifications that are reversible
- Store the firearm safely and controlled climate conditions
- Consider having collectible firearms professionally appraised
Taking these steps helps preserve the condition, documentation, and collectability of the firearm – all factors that impact residual value years down the road.
When Guns Appreciate in Value
While depreciation is common, there are also many instances where firearms appreciate in value and become highly coveted collectibles:
Discontinued Iconic Firearms
When legendary firearm models get discontinued, existing copies often become far more valuable. Iconic examples include the Colt Python revolver and the Remington 870 Wingmaster shotgun.
Commemorative Editions
Special commemorative editions of firearms produced in limited runs appreciate greatly. These special models celebrate major anniversaries, historical events, or special achievements.
Used in Major Wars/Battles
Surplus firearms used in major global wars and battles also tend to gain value. Models like the WWII M1 Garand and German Luger pistol are highly coveted today as collectibles.
Owned by Historical Figures
Any firearm owned by an iconic historical military or political figure also sees immense appreciation. For example, a pistol owned by General Patton or rifle used by Davy Crockett would be incredibly valuable to collectors.
In these instances, the historical significance and provenance dramatically increases interest and market value – often many decades after the original purchase.
Protecting and Maximizing Residual Value
For firearms owners less concerned about collectability, protecting residual value over time is still important. Here are some tips:
- Clean and lubricate the firearm properly after each use
- Use high quality gun cases and safe storage options
- Keep all original manuals, parts, and accessories
- Repair any mechanical issues promptly; don’t let damage worsen
- Consider investing in a firearms maintenance insurance plan
- Research market prices regularly to optimize eventual sales timing
Proactive care and maintenance will minimize depreciation – while you also avoid damaging any hidden collectable value in the process.
Selling Timing to Maximize Value
When the time does come to sell a firearm, market conditions matter greatly in getting the best possible price:
- Economic downturns or recessions can dampen prices for non-collectible used guns
- Threats of gun bans or legislative changes often spike demand and prices
- Sell into geographic areas seeing gun supply shortages
- Popular trends around certain action types or calibers impact interest
- Adjust asking prices based on real-time market data
With an understanding of broader market forces, sellers can time firearm transactions to their advantage – potentially recouping more residual value back versus an unfavorable environment.
Conclusion
While firearms depreciate like any consumer product, they tend to hold residual value better than many other retail items. Much depends on the specific type, historical significance, condition, and broader market conditions when eventually selling the firearm. With proper maintenance and care, guns can maintain strong value for years or decades after initial purchase. And in the case of rare collectibles, they may actually appreciate greatly over their lifetime.