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Umm is this normal? (Transfer Fee Question)

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I'm a little green on NFA/ Class III, but I've done enough reading and research (I think?) to know when something is a little out of character....

Looking at purchasing a Transferable at auction in roughly a month. To my knowledge there is one (yes, one, you read that correctly) Class III dealer in my entire state that dabbles in machinegun sale and I wanted to run my intentions by him (this being the primary owner of the shop) since his business would be conducting the transfer - I have talked to other partners, but he captains the ship.

Blah blah blah.... "Well I would need about 3-4% of the gun's value per month to store the firearm while the Form 4 paperwork waits for ATF approval [plus the other 2 months the Form 3 would initially take coming from the auction firm], so plan on paying $400 a month for me to store it."

Made a call to another dealer who does NFA (no mg's though, but rents them) and he nearly stroked out over the phone when I told him the number. Quote: "That's ridiculous, might as well get your own FFL at that point."

I just wanted to know what everyone's opinion is on this... where am I at on the sliding-scale of "dropped the soap in the shower" to "bend over this barrel" while I go looking for moon rocks to fund my upcoming 'storage' fee.

Thanks.  

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Yes, he is hosing you. Avoid doing business with him if at all possible. If the MG is a C+R example it will transfer directly to you if you have a C+R FFL03, a collector's license, so you would bypass the dealer. What type of MG is it?

If it is not a C+R MG, then you will have to find another dealer in the state. There probably are other FFL/SOTs in your sate, manufacturers, importers, etc who can also do the transfer. What state are you in? Look for other FFL/SOTs.

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i think the Class 3 should be kicked in his ammo cans.  that is outrageous !

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The going rate for MG's , SBS, SBR, AOW, Suppressor..."transfer fee" in my state is $75 to $100.

And I thought that was outrageous... 

 

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A SOT I had used for a number of transfers got out because transfer times were getting longer & longer. If you think about someone sitting on a bunch of high dollar machine guns for 6 months + that's a lot of responsibilities. Not everyone of them have walk in vaults, start adding big gun safes, insurance cost & their time & it adds up.

I'm not saying the prices listed above are typical by no means (I never paid more then $25.00), but I can see how one comes to those prices.

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This is all on top of a $80 transfer fee as well, which is reasonable.

As Baboon said, holding a high-dollar mg for several months is a notable amount of liability for the dealer when considering theft, fire, insurance, security, etc. Which makes me understanding of a fee, but not $400 a month. That's just dumb.

Not looking to knock the guy's business or make trouble, but I am in North Dakota and will consider any SOT/ Class III able of transferring machineguns. So far I only have the one option...

C&R Application is getting put in the mail today and overnighted in an attempt to avoid the mess on the horizon here. Gun [MG42] is C&R eligible.

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>C&R Application is getting put in the mail today and overnighted in an attempt to avoid the mess on the horizon here. Gun [MG42] is C&R eligible.<

 

Excellent! FFL03 will take a month or so for processing and you are then eligible to sidestep around the dealer with the transfer directly to you.


 

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Was also able to find that list SierraWhiskey, and went down it checking the sources.

Unfortunately, still only the one shop who is set up for MG's. Lots of shops will deal with silencers and SBRs, but they generally won't touch the machineguns or even consider it unfortunately.

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Sorry to hear it. I guess I'm spoiled. I have 5 within 20 miles of me here in Northern Idaho.

 

Steve

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My daughter lives in ND and told Me She has a Guy in town that did a suppressor and told Her He would do MG's.

She lives about 45 miles north of Bismarck , if You could give Me your phone # I could have Her call You.

roy@gemstatearms.com

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