I have two Lugers, one a "shooter" and the other a "collectible"; I also have a very nice P-38. (Mine is one of the French-made guns produced late in the war; not as desireable for a collector, but still collectible.)
The Luger is really a WWI weapon, although beautiful and surprisingly accurate. The P-38 was one of the first double-action 9mms.
If the Lugers look good, that's not a outrageous price, but you can get good shooters for less. (Check out
Www.AIMSURPLUS.COM) Its a striker-fired weapon, and the safety should prevent any problems with cocked/locked carry. Lugers were notorious for being really susceptible to dirt on the battle field.
You'll find good examples of each for sale in the ads of Curio & Relic dealers in SHot Gun News. Look there before you buy.
Collectible Lugers or Walthers (which haven't been dipped reblued or screwed with, start about about $700 and go up, up, up.
Look for matching numbers on the Lugers: damn near everything is numbered on the gun -- from trigger to sideplate to barrel, frame, magazine, etc. If they're not matched, they've been factory rearsenaled and are less valuable. (I have a "bring back," in near-new condition, in original holster, etc., and its worth $1000+)
All of the above holds true for the Walthers -- and for about the same prices.
Do yourself a favor and either get or borrow a copy of Fjestad's Blue Book -- which will tell you good "ballpark" prices and even show great photos of representative conditions, and their prices. (The photos are at the front of the book.)
When something goes wrong with a Luger, not every gunsmith can get them right. Parts are not a problem. Walthers are a little less mysterious to gunsmiths, as basically the same gun was (or is) still being made for commercial sales. A very advanced design, considering its 60+ years old.