Consignment Rules for the Gun Shop

[Pinto]

I'd like to find out from some knowledgeable in the "rules" concerning consigning a pistol for sale at my FFL gun shop.

So I have a NIB Glock that I'd like to put up for sale. I took it to my regular shop to find out the value. He does consignment sales - has a nice display counter and a good trade - so I asked if he would sell it for me. Says sure, we come to an asking price, he writes out a receipt and put the gun in his display case.

Now less than a week goes by and I have an opportunity to trade the Glock away. So I call my guy & told him to take the gun out of the case, it was no longer for sale. I said "I'll be down to pick it up tomorrow". He said, "Wait a minute. It's not that simple. When I took the gun in from you, it had to be logged into my inventory. Now for me to give it back, we have to do all the paperwork and you've got to wait the 10 days."

Well, I was a little stunned. I didn't argue, but I got to thinking. I didn't do any paperwork to transfer the gun to him, why would I have to transfer my own gun back to me? I was too surprised to ask if it was going to cost the $35.00 to retrieve my property, so I don't know if that figures in.

Does anyone know if this is the way it works? I don't think he's dishonest - we've always had a good relationship. But he's real picky on the rules. I haven't sold a gun on consignment in the past and it doesn't look like I will in the future.

[Moonclip]

This is true and legal, I find it strange you did not fill out paperwork when you dropped it off though.

You probably may have been better off selling it here on the trader.

[kurac]

From what I understand, the way he told you is the way it works, not because he is making rules but because the state of CA has its own rules.

[AngelDecoys]

Now less than a week goes by and I have an opportunity to trade the Glock away.

My understanding is that if the shop has the firearm under 30 days, there is no need to go through paperwork to retrieve the item. (I'm probably confused on this. An FFL will be by shortly to clarify).

If you're trading it, bring your buddy down to the shop and just do the PPT instead.

[tiko]

That was what happened to the guy got 10 guns in a store, when that store close down, he needed 10 months to get all his guns back.

[Pinto]

Moonclip - As a matter of fact, it is coming back through here.

It was a "spur of the moment decision" to leave it with him. I never had tried selling thru a shop and I figured "what have I got to lose?". Guess I found out.

Like I said, I didn't believe he was trying to take advantage, but he is a stickler for the rules. I know it's a DOJ thing, but someone had to have had their head buried on this one.

[Pinto]

...

If you're trading it, bring your buddy down to the shop and just do the PPT instead.

That's what my FFL sugeested, however the shop, and I, are up in the Gold Country hills and the other party is in the Bay Area. My business takes me to his area & I agreed we could use his FFL.

[Moonclip]

That's what my FFL sugeested, however he, and I, are up in the Gold Country hills and the other party is in the Bay Area. My business takes me to his area & I agreed we could use his FFL.

I'm sure he is taking his % cut though. I use consignments a lot though, I'd like to sell more here but I've had too many flake experiences and thread crapping. One gun that I was trying to sell here for around $400 that I was told was too expensive I later sold for $700.

[dfletcher]

Don't mean it as a criticism - actually, I'd kind of like to find out how others feel, because I've left a gun or two on consignment for quite a while - but I've always thought it was considered poor form to drop off a gun for consigment then sell it it elsewhere. Again, a thought I've had for as long as I can remember, I may be way off base. What's the general opnion?

[Pinto]

Don't mean it as a criticism - actually, I'd kind of like to find out how others feel, because I've left a gun or two on consignment for quite a while - but I've always thought it was considered poor form to drop off a gun for consigment then sell it it elsewhere. Again, a thought I've had for as long as I can remember, I may be way off base. What's the general opnion?

You know - I agree with you. I did discuss the situation with him when I called
to tell him about the trade (before the transfer issue came up). He understood my delimma & I understand he is in business. I've offered to pay him for his time/trouble and he said because I was a regular customer there would be no charge, but we both agreed to discuss it further when I come pick up the pistol. That's when the other issue arose.

I think we'll come to understanding suitable for both of us. We have a good business relationship - and he know I have more money to give him - so, in this case, I think as long as we are honest and open in communication, it will be OK.

But YMMV - I think, in general, it's poor form.

[Moonclip]

Your dealer seems pretty good to you to do this w/o a profit being made. I'd buy some ammo and stuff as a gesture of goodwill.

[Pinto]

Your dealer seems pretty good to you to do this w/o a profit being made. I'd buy some ammo and stuff as a gesture of goodwill.

LOL - I have to list his shop as a dependent next tax time ... he does some fine 'smithing & I have several more pistols that "need" work. I'm making sure we'll be even when this transaction's done.

[Rob454]

I'd never sell through a shop. if I dont get my asking price or close to it I rather not sell it. Some shops have ridiculous fees and by the time youre done you loose your azz. Well you loose your azz anyway. yeah i understand that shops have overhead and etc which is fine. I jsut rather keep the money in my pocket rathr than putting it in someone elses pocket
Rob

[Moonclip]

I'd never sell through a shop. if I dont get my asking price or close to it I rather not sell it. Some shops have ridiculous fees and by the time youre done you loose your azz. Well you loose your azz anyway. yeah i understand that shops have overhead and etc which is fine. I jsut rather keep the money in my pocket rathr than putting it in someone elses pocket
Rob

Agreed but see my reasons for not always selling here.

[FortCourageArmory]

What the FFL was telling the OP is correct. Once I accept a gun to sell on consignment and I book it into my A&D book, the original owner has to DROS it back if he wants it returned. That's a State of CA requirement. Some cities (like the one I do business in) have further requirements to treat consignment merchandise under the Second Hand Dealer program. It basically means I have to treat it like a pawned gun. There's a form to fill out and a copy to forward to the local PD. They check the gun(s) out to make sure they aren't stolen and I am required to not release the gun for 30 days. Yes, it can be a PITA, but if you explain it up front you prevent these kinds of situations.

For the guys not wanting to sell through a shop, I understand your feelings. I always tell my consignees that they set the price and I will take my 20% out of whatever we get. I also tell them that if someone counter-offers their price, I'll call them and let them make the decision about whether or not to accept the deal. That way they are in control of the deal.

As for making a seperate deal, it's a delicate line we walk. I'm putting "your" gun out there offering it for sale. I am responsible for it. I basically become your gun's caretaker. But if I'm not the one brokering the deal, am I entitled to anything? Well, fortunately this has only happened to me a couple of times. When it did, I reduced my fee from 20% to my standard transfer fee ($50) and took it out of the seller's end. Both times, the seller was happy with the deal. All I can offer is good communication between FFL and seller is necessary to insure everyone is happy with the deal.