Do Guns Depreciate in Value?
Most guns depreciate in value by around 15% right after purchase, then about 20% after the first shot. Historically significant, rare, and limited-edition guns often appreciate instead.
After the initial depreciation, the rate at which guns depreciate or appreciate varies based on several factors like condition.
What Factors Affect Gun Depreciation?
The factors that affect gun depreciation include the brand and model, condition, rarity or collectability, age, current supply and demand, and modifications.
Let’s check out each one of those things with examples!
1. Brand and Model Reputation
Some brands’ guns depreciate less. Guns from a company with a reputation for making quality items will often depreciate less than others over time.
That’s because people will be more likely to buy these guns in resale. The logic here is that a gun from a good brand won’t fall apart even after someone’s shot it a few hundred times.
Aside from that, many buyers are just more interested in known brands. It’s why most people prefer to buy a smartphone from Apple or Samsung compared to a less-known maker.
Example: Known vs. Less-Known Brands
A few examples of brands with strong reputations are Colt, Smith & Wesson, and Glock. A used gun from these will usually depreciate slower than, say, a gun from Kodiak Defense.
2. Condition
A gun in good condition is worth more than one in bad condition, all other things being equal.
It’s plain common sense. Value is always what someone is willing to pay for an item. And think about it – wouldn’t you be more willing to pay more for something not worn down?
That’s why caring for guns helps control their depreciation. The more you wear down the gun, the less it’s worth. Every scratch or handling mark eats away gun resale value!
Example: Mint vs. Fair Condition Guns
Preowned but unfired guns in perfect condition often get the best prices. In many cases, the value of guns like this is just under MSRP.
A fair-condition gun that’s been used a lot can be valued at just 50% or so of MSRP, by comparison.
As such, a Gen 2 Colt Python in mint condition can get upwards of $1,500 in resale. A fair-condition gun of the same type will get just half of that.
3. Rarity, Significance, and Collectability
Rarity often creates value. We see it in red diamonds and we see it in firearms.
In some cases, rarity will also overlap with another trait, which is historical significance. Some of the most collectible firearms are both rare and significant.
Example: The OWA Colt Single Action Army Guns
Some Colt Single Action Army (SAA) pistols have the OWA cartouche on their handles. These came from inspection by Orville Wood Ainsworth from 1873 to 1874.
This means Ainsworth inspected the very first SAAs Colt ever made. He even inspected the ones later used by some of Custer’s cavalry at Little Bighorn!
Time and use have led to a lot of OWA Colt SAA pistols being lost or broken down. The original Colt SAA design is also no longer being made today.
This makes good-condition OWA SAAs even rarer and more historically significant. They appreciate instead of depreciating now. Some even sell for upwards of $10,000 today!
4. Age
Sometimes, age adds value to a gun, especially if paired with significance or rarity.
About fifty years in, a gun is pretty much an antique and gains collectible value from that. Younger guns (even ten-year-old ones) usually don’t get that effect.
That being said, guns usually don’t suffer too much depreciation from age either. They’ll likely lose value from use or condition degradation instead.
Example: The Original Colt SAA Pistols
The gun we used in our previous illustration works for this one too! The early Colt SAAs are about 150 years old by now. They’ll only keep going up in price as they’re proper antiques today.
5. Supply and Demand
Gun value has an inverse relationship with supply, and a direct one with demand.
A lot of things can influence those too. Supply can be affected by manufacturer issues. Demand can be influenced by pop culture trends. Just look at what The Walking Dead did for the Colt Python’s value and demand, for another example!
Let’s take an example again – something in the Mil-Surp (military surplus) gun category. It’ll also answer the question of how do guns appreciate in value.
Example: The Mosin-Nagant Rifles
There was a time when you could buy Mosin-Nagants for under $100. Heck, you could practically pull them out of a barrel at your local gun store.
But since then, imports (supply) of these rifles have gone down. Meanwhile, collector demand for them has gone up. A lot of the plain Mosin-Nagants now go for $300 or so.
And if you want something that’s in even shorter supply here, the price goes up again. Finnish ones are both better-made and rarer, so they can go to $450. The even-harder-to-find French or Châtellerault Mosins hit prices above $1,000.
6. Modifications
Aftermarket changes can affect gun depreciation too. Unless it’s for a highly valuable and functional upgrade, modification usually increases gun depreciation.
This is because most guns are more valuable in their original configuration. Sure, a top-of-the-line upgrade will carry over part of its value in resale. But most buyers won’t want the upgrade.
Example: Adding a Premium Optic to a Gun
Say you have a nice AR-15-style rifle and have added a premium optic of your choice to it. You put it up for resale one day with the optic included and factored into the price.
It’s highly possible to get offers for the gun priced without the optic. That’s because most buyers only want to buy the gun and want to choose their own optic for it.
What Guns Will Go Up in Value?
The guns that will go up in value are typically collectibles, rare models, limited-editions, antiques, and historically significant firearms.
We’ve already discussed several of them earlier. Here are some more examples of models that appreciate each year thanks to their rarity and significance today:
- The pre-1964 Winchester Model 70
- The pre-ban or early Colt AR 15s, like the Model 601
- The rare Gen 1 Glock 19
- The original Colt 1911 made from 1911 to 1924
So, Are Guns Worth Investing In?
Guns can be worth investing in for your happiness as a collector. But most guns as an investment aren’t ideal since they depreciate with use.
That means investing in firearms isn’t ideal if you actually fire your guns. Guns are also even more sensitive to certain sociopolitical fluctuations than assets like gold, stocks, real estate.
Some people may think of investing in machine guns, for example, because they’re rare. But now let’s say a blanket ban for machine guns happens in their state.
See the problem? They’re now saddled with an investment they can’t sell, even if it’s become an even rarer product than before!
Can You Stop Guns from Depreciating?
You may not be able to stop most guns from depreciating, but you can slow the rate at which some depreciate.
For example, we said earlier that unfired guns often get the highest values. That’s one way to reduce your gun’s depreciation: keep it safe and unused in the cabinet!
That said, you can still stem depreciation for guns you actually shoot. Here are some tips that can help you stop guns from depreciating too much:
- Store them properly when not in use. That means you should keep them clean, dry, and in a controlled environment.
- Care for them during and after use. Don’t throw them around to avoid dents and scratches, and oil or maintain them as recommended for the model.
- Keep the original packaging and paperwork. Keeping these can often improve a gun’s resale value later, as proof of its provenance.
Get an Expert Value Appraisal for Your Gun
Ultimately, depreciation is normal for most guns. The degree of depreciation each gun sees will vary, though, even with guns of the same model.
If you’d like to get an idea of your gun’s value, reach out to us at Cash for Arms. Our professionals do online appraisals for free and can even provide offers for guns you may want to sell.
Simply tell us about the gun you’re having assessed here on our website using our contact form. Alternatively, you can call us at (904) 977-5477!