The 5.56mm Steyr rifles were introduced as the NZDF’s standard issue individual weapon, starting in 1987.
A tender process for a replacement was started in May 2014 and deliveries started in 2017, 9040 new rifles from Lewis Machine and Tools being delivered in a $59 million deal.
A defence force spokesman said that since the final withdrawal from service in 2018, the number of Steyrs available for disposal had been reduced to 4806 weapons as a result of "inspection and routine destruction processes".
All the rifles remained secure at NZDF armoury facilities, and a final decision on their fate was yet to be made.
A number of firearms had been distributed to military museums for heritage preservation and public display, the spokesman said.
Gun City owner David Tipple said there would be no shortage of potential buyers for the old rifles, which would be worth hundreds of dollars each.
"They’re always going to have a value no matter what state they’re in," Mr Tipple said.
Whenever a bulk lot of thousands of guns was bought, some work would be required on each of them.
However, knowing the New Zealand Army’s thoroughness, the rifles would be "in beautiful condition", Mr Tipple said.
There would still be a use for them, although that did not mean they would be sold to American special forces because there was better equipment out there nowadays.
He did not think the rifles would go to another military, but rather to private buyers overseas.
Regulations would only permit the rifles to be exported to countries that New Zealand felt comfortable with, which would rule out Russia.
"We’re very good at knowing who is a safe bet," Mr Tipple said.
It was "pretty scary" the defence force could not make up its mind, and if it was up to him they would be sold tomorrow, Mr Tipple said.
