Selling on Consignment and the 5 PPT Limit

[Philinsocal]

I had a question regarding selling guns on consignment. Would selling a gun on consignment count against the limit of 5 PPT sales per year? I had never really considered selling on consignment before due to the cut that you have to give to the house but, I may reconsider if this does not count against the limit.

[igs]

edit: depends on dealer

[1911Luvr]

Consignment is not ppt.

Many shops treat it as a PPT, having you do the paperwork that way.


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[Philinsocal]

Consignment is not ppt.

Many shops treat it as a PPT, having you do the paperwork that way.


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That is my fear!

[P5Ret]

I've never seen a consignment that wasn't treated as a PPT, especially for off roster.

[Philinsocal]

I've never seen a consignment that wasn't treated as a PPT, especially for off roster.

Ugh... well, there goes that idea.

[A-J]

I bought a used gun at my favorite shop and it was treated as a PPT, otherwise I would have had to wait another week or so since it had not been 30 days yet since my last purchase.

[SkyHawk]

Just because it is treated as a PPT for DROS purposes, the answer is still not clear to me. IMO it could be argued that having a dealer maintain, display and profit from the firearms, means the dealer is the one transferring them and a dealer of course is exempt from limits.

[P5Ret]

Just because it is treated as a PPT for DROS purposes, the answer is still not clear to me. IMO it could be argued that having a dealer maintain, display and profit from the firearms, means the dealer is the one transferring them and a dealer of course is exempt from limits.

Is it noted anywhere on the DROS paperwork that it is a consignment sale? I've honestly never looked.

[Philinsocal]

Just because it is treated as a PPT for DROS purposes, the answer is still not clear to me. IMO it could be argued that having a dealer maintain, display and profit from the firearms, means the dealer is the one transferring them and a dealer of course is exempt from limits.

I like your thinking. There are probably some off roster guns that would allow the seller to net what they need while also allowing the FFL to make their profit. While the seller isn't maximizing his or her profit, he or she would also be free of the hassles associated with a PPT (such as coordinating schedules and a place).

[lordmorgul]

[jc0311]

If you have multiple handguns you want to put on consignment, is the initial transfer the one that count on your 5 per year? Lets say you bring 5 off roster handguns to your LGS for consignment, obviously you would do the initial transfer to the dealer, they hold on to the guns for 30 days, then they sell them either individually or maybe in a bundle, via PPT, would those subsequent transactions count against you or are they the dealer transactions. I've heard conflicting arguments.

[Duck Killer]

You can still sell on gunbroker and ship out of state to FFLs

[Nickbowen5]

[onelonehorseman]

I have seen a couple of shops that wouldn't really do a consignment, but rather they would just purchase your used firearm outright (for a low price). The Stockade did it that way.