Hi Charles, and welcome to the forum.
Keep your eye on the "for sale" ads here. Shooter grade Lugers (and some very nice ones) come up for sale every so often.
Import marked RC Lugers can be found at or below your price point. Very nice mis-match shooter grade pistols (not dipped or import marked) can also be had at around your price point.
Buying from a private individual will have a lower acquisition cost than a retail dealer, but - of course - less support. Look for a 3 day non-firing inspection period.
If you don't already have it, apply for a Class 03 (Curio and Relic) FFL from the ATF. It's the very best way to go with collecting historic firearms. You'll save the $30 (for 3 year) license fee by getting dealer prices from most online firearm supplies companies like Midway and Brownells.
Where are you located?
Marc
__________________
 Igitur si vis pacem, para bellum -
- Therefore if you want peace, prepare for war.
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