Stu, see you are networking!
That is how I have bought most of my guns the last couple of years, from other collectors. I wouldn't say I got wonderful deals, but they are real guns, without fake marks or proofs on them and I sure didn't bad deals,
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The "cheapest" Luger I have seen in the last couple of years was $385 and I passed on it. There are deals out there, I paid $400 for a matching gun, (1) magazine, holster and matching tool last fall, but the gun was in really bad shape. Deals are out there, but not very common. $250 is a good price, although it isn't easy to remove nickle and then reblue a gun, but as a shooter, it sounds like a good deal.