It seems like there are three different price points for M16s with registered receivers.  

Lowest is the EA Company Cast receiver conversions
Middle would be an AR15 style converted by an outside shop like an SP1
Highest would be something that left Colt as a full auto like an M16A1 or so

Right or wrong?

New to this stuff an am interested in learning.  Reliability seems to be the same, just some models need an offset pin to hold different uppers?

More than three tiers, but yes, some RRs are more desirable/collectible/valuable than others.  Read up in the "Class 3" forums of the armory for more detailed discussion.

There are more tiers than this but it will get you started. Anything Colt will hold more collectors value, especially ones marked "M16" and those that are factory guns. There are numerous other collectible M16s such as those marked "Government Property", low production models or rifles still in original packaging but unless youre a big time collector they wouldnt concern your.

Transferable M16 machine guns and estimated market values:
RLL $14-16k
RDIAS $23-28k
RR Non-Colt Cast AR15 Conversion $16-18k
RR Non-Colt AR15 Conversion $17-19k
RR Colt AR15 SP1 Conversion $17-19k
RR Colt AR15 614 $18-20k
RR Colt M16 $21-24k
RR Colt M16A1 $23-27k
RR Colt M16A2 $28-33k

Websites to watch for good deals on machine guns:
http://www.sturmgewehr.com
http://www.shootersdepot.com
http://www.atfmachinegun.com
http://www.autoweapons.com
http://www.impactguns.com
http://www.subguns.com
http://www.onlythebestfirearms.com
http://www.davidspiwak.com
http://dealernfa.com
http://www.gunbroker.com
http://www.nfasales.com
http://www.classiiidealers.com/
http://www.westernfirearms.com/
http://www.urban-armory.com/
http://www.ar15.com/forums/f_7/118_NFA_Firearms_andamp__Parts.html

Website that tracks machine gun values:
http://www.machinegunpriceguide.com/

Then you can get into some rarer sub versions like govt. marked M16's which will command a few more thousand

a Colt 614 marked M16 vs AR15 can be $2,000 more for M16 markings....exact same gun (a Colt 614)--just a different roll mark...people are willing to pay a premium to have M16 marked on their gun

Any reliability issues with conversions vs a factory colt?

I have an Olympic converted by SAW and it ran perfect yesterday. The lower does have spec issues that M60joe will be taking care of. No problems with the conversion work though.

I haven't got my Colt M16 yet but I expect that to be perfect.

Not really reliability issues, more of spec issues. The most common being that modern AR15 upper will not fit a non-colt RR lower, but usually nothing a competent gunsmith can't fix. Also, the issue is usually not with conversion rifles as the only thing you really do to convert a AR15 is drill a hole for the auto sear so as long as they didn't mess that up it should be fine. The issue is really a non-colt vs colt issue, hence part of the massive premium people pay for colts. With that being said I bought a Olympic arms M16 RR which was out of spec but sent it to a gunsmith and it now is in spec and runs reliably as any colt but for $10,000 less.

I'd take an off-brand conversion over an SP1 conversion any day - especially if the off-brand was priced a few thousand less.  My first M16 was an SP1.  It ran great and was 'in spec', but that dang big front pin was a PITA when it came to changing uppers/calibers.  For a fee, M60Joe can fix this.  But I had mine way before he was around...

$0.02

On the topic of converted m16's


Back when machineguns were legal and beer tasted better there wasn't prolific use of CNC machines in the ar15 industry.  Just about all the forgings came from the same few forges.  The machining was often done by hand, which led to small variations on how they were finished out.  Stuff like shelves slightly too high, selector detent holes not centered, etc.  Usually small annoying stuff.  M60Joe can fix just about any of them, and you only have to do it once and it's good forever.  I have a oly lower converted by saw armory.  It needed the selector detent centered.  I cleaned up the forging flaws, and it was perfect.  Theres not anything to fear from a converted RR.

On the topic of types and tiers of M16, isn't this H&R 'M16' most likely a reweld?

http://www.gunbroker.com/Auction/ViewItem.aspx?Item=537194069


My understanding is that most (maybe all) H&R M16s are rewelds, and that H&R didn't release any to the public.


This gun has been on GB for a while, with no bids.


That's the problem with M14s and H&R M16s. Most are rewelds, so even the possibly legit ones, have the stench and suspicion of being a reweld. I've tried to buy several M14s, and the deals would always fail because the owners would always refuse testing (at my expense even), swearing up and down it wasn't a reweld. No testing, no deal.

Where do you think the stainless steel Group Industries M16A1 registered receivers would fall? IMO they demand an even higher price than some factory Colts, probably somewhere in the RDIAS ballpark.

https://www.ar15.com/archive/topic.html?b=6&f=23&t=305574

Regardless of how many there are, for some they're tiers of pain, for others tiers of joy.  Pun intended.

Im not sure, i suppose they could carry a premium because of the rarity but personally based on the fact that its made of steel i would think that would be a turn off for many buys do to the significant amount of weight it would add to the rifle, easily a pound or more. I would say i on par with other non-colt conversions in the $16-19k range

EDIT: Read rest of the article it appears to be a 12.2 oz difference.

They once did command a premium but I haven't seen one available in years.

Years ago there was a release of uncut H&R guns M14 & M16A1's( Doug from DLO got a few of them in his shop at the time) One would be wise to inspect it but that GB auction  looks to be legit unless they were able to replicate the forge flashing in the trigger area!

I emailed the seller. He said it was from the H&R museum. I'm slightly tempted, as I don't have an H&R M16. However, the price seems on the high side.

if your talking about the one on GB---it may be in the high side, but when will you find another one?

Chad is a good guy and tends to have some pretty awesome M16s for sale. Buy it. Six months from now you won't care what you paid for it.

I'd say the Colt 614 is the best MG for the money. The only difference between it and an M16 is the lettering.

Agreed, a Colt factory machine gun for basically the same price as a AR15 colt conversion. I think it's even marked safe/semi/auto. Just missing the "M16"

Yes, a 614 is marked SAFE SEMI and AUTO.  I love the look next to an AR-15 roll mark -- surprise, surprise...