What could possibly make an AR15 be worth $1000 and up? There can't be that much difference cost wise in the components. I've always wondered about this, so please educate the uneducated!
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While some of it may be due to brand/manufacturer name (Colt, Daniel Defense, Aero Precision etc.) I think there is actually a difference in a lot of the quality of parts you can have in your rifle. Some rifles are much more precise than others and the parts are machined to tighter tolerances. Or the steel and alloys they use might last longer, etc. Trigger quality is another thing too.
So while you may not notice it at first with a budget-cost AR, you will definitely appreciate a higher quality made AR over time the more you use it. For me, I expect to spend about $800-$1,500 (or more) on a good AR. It's the same as buying a quality 1911 handgun -- I wouldn't spend less than $1,000 on one.
This has some good explanations of things such as parts quality, the term "mil-spec" etc.: http://www.thenewrifleman.com/the-ar15-buyers-guide-simple-steps-for-buying-a-great-rifle/
The word "custom".