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Others may give you a different, better answer, but I've learned a bit about Lugers over the last couple of years.
Lugers are like diamonds -- you've got to examine them closely and know what you're looking at before you can get a reasonable price.
During the period you cite (the late 30's - early 40's), they were turning them out like clockwork -- so for it to have any great value it will have to be pristine, with all original parts, holster, etc. Go to Barnes & Noble or another bookstore and look through Fjestad's Blue Book of Gun Values to get an idea. They'll also give you photos of other guns in the front of the book so that you can roughly judge condition.
The market was flooded in recent years with Lugers captured by the Soviet Bloc forces during WWII. These guns, after being used by Soviet police forces, etc., were reblued and turned loose on the world markets. In a lot of cases, parts got swapped, etc. I have one of those guns -- a GREAT shooter -- and its worth maybe $450.
(One reason that matching part numbers are important is that the luger was essentially a hand-fit weapon; matching numbers was a way of insuring that the gun would work -- matching number was a signal that the parts put in it at the factor were still there. Collectors expect this from a purist's point of view. Shooters want the gun to function, so its a plus for them, too.)
I also have a very nice 1940 Mauser P-08, in original holster, matching mag, take-down tool, with all parts matching and little wear. Just the tiniest bit of surface rust on one side, where it contacted the holster (as it laid in a drawer for 30+ years.) This gun is worth maybe three-four times as much as my shooter. And this, despite the fact that there were more of this model made than any other Luger.
Your friend needs to get in touch with a Luger expert... Sources can be found on the Web.
[This message has been edited by Walt Sherrill (edited September 20, 2000).]
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