kevin koch

dealers role in NFA sale

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Question - how does the in-state dealer who holds an NFA firearm until the buyer is approved get compensated?  I am waiting to be approved by ATF for a SBM purchase.  I paid the out-of-state seller who transferred the firearm to a near-by SOL dealer, who I understand owns the firearm, per ATF, until the transfer is approved.  How does the SOL dealer get compensated, if at all, if and when the transfer is approved?  Is there a transfer fee, do I tip him?     This is my first purchase with several months to go, I appreciate anyone's help, thanks.

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There will usually be a transfer fee. I would contact your dealer and inquire.

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2 hours ago, kevin koch said:

Question - how does the in-state dealer who holds an NFA firearm until the buyer is approved get compensated?  I am waiting to be approved by ATF for a SBM purchase.  I paid the out-of-state seller who transferred the firearm to a near-by SOL dealer, who I understand owns the firearm, per ATF, until the transfer is approved.  How does the SOL dealer get compensated, if at all, if and when the transfer is approved?  Is there a transfer fee, do I tip him?     This is my first purchase with several months to go, I appreciate anyone's help, thanks.

Your dealer doesn't own the firearm as ownership is not conferred by ATF transfer paperwork.  The form you submit to the ATF is only a request for permission to transfer an NFA item to another entity.  Federal law requires interstate transfers to terminate with a licensee, so that's why there's an interim step of the initial transfer request to your local dealer who takes possession of the firearm after that transfer is approved to him. When he receives your firearm, you then submit a new transfer request from him to you, during this whole process YOU are the owner of the firearm that you paid the original owner for.

Regarding your in-state dealer's compensation, that's something you should have discussed prior to sending him any firearm for transfer, regardless of whether it's a title 1 or title 2 gun, as most dealers have higher transfer fees for NFA firearms since we're storing them for longer periods of time with greater possibilities of headaches with paperwork.

Edited by b_san

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2 hours ago, kevin koch said:

Question - how does the in-state dealer who holds an NFA firearm until the buyer is approved get compensated? 

You should have talked to him and get the price for transfer, as now you have to pay what he wants, Unless you want to wait another 6 months.

I had a Dbag dealer offer to transfer a can for me about 17 YAG. I was new to the area but not new to NFA. I didn't ask about the fee. He charged 100 which floored me, at the time the most outrages transfer I had heard was 50.

 

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5 hours ago, taylorwso said:

You should have talked to him and get the price for transfer, as now you have to pay what he wants, Unless you want to wait another 6 months.

I had a Dbag dealer offer to transfer a can for me about 17 YAG. I was new to the area but not new to NFA. I didn't ask about the fee. He charged 100 which floored me, at the time the most outrages transfer I had heard was 50.

 


He'd still likely have to pay the transfer fee, I wouldn't transfer it out to another dealer without getting something for my trouble plus the shipping cost to the next dealer.  Live and learn, ask prices of services before contracting for those services.

Edited by b_san

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Your going to get hit with a fee from that dealer whether you go through them or not just for the fact they have to do paperwork to transfer it to another person.. 

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Your average NFA transfer if you are doing all the paperwork, customer interactions, contact with the transferring dealer, etc. will take several hours in addition to you storing an item for potentially a year with your insurance covering the potential loss.   SOT fees, aft inspections and more all add to overhead.

If you are doing all this for less than 100, you've broken under min. wage.  A $25 a 4473 is barely break even, but gun guys rarely double as finance majors which is why you never see rich SOT's with big collections, but you do see guys with math skills and no SOT's that are rich with big collections. LOL

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I pay $25 for a 4473 I  have no problem with $50 for a suppressor or $100 for anything else. Who has the risk of loss in case of fire or theft?

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