cost of ownership

Bob Fry wrote:

From my experience the market isn't working w.r.t. discounting the
price of an airplane with the engine near TBO. When searching for my
airplane, I found two very similar models to the one I eventually
bought, and rejected them both when the owners wouldn't discount their
selling price because of the engine time.

Presumably, they'd already built the engine time into their selling prices.
Unfortunately, a lot of owners seem to have pretty exaggerated ideas of
what their planes are worth. They probably had to drop their prices
eventually, or else they gave up on trying to sell.


All the best,


David

David Megginson writes:

Bob Fry wrote:

From my experience the market isn't working w.r.t. discounting the
price of an airplane with the engine near TBO. When searching for my
airplane, I found two very similar models to the one I eventually
bought, and rejected them both when the owners wouldn't discount their
selling price because of the engine time.

Presumably, they'd already built the engine time into their selling
prices. Unfortunately, a lot of owners seem to have pretty exaggerated
ideas of what their planes are worth. They probably had to drop their
prices eventually, or else they gave up on trying to sell.

Neither one had taken into account the cost of an engine overhaul,
IMO. Both did eventually sell; one for about $4000-$5000 less than
what I paid for my similar, low-time model. So some discounting (for
high-time engine) was done by seller and buyer, but not enough.

Bob Fry wrote:
: Neither one had taken into account the cost of an engine overhaul,
: IMO. Both did eventually sell; one for about $4000-$5000 less than
: what I paid for my similar, low-time model. So some discounting (for
: high-time engine) was done by seller and buyer, but not enough.

I think it's generally considered (and seems to hold true) that the discount
on a run-out engine is about 1/2 the cost of buying a new one. When we were looking
for a Cherokee, one with a "fresh" engine cost $5-7k more than one that was runout. A
mid-cost/effort overhaul for a 4-banger like that would be $10-15k.

Seems to be about the same with the avionics.... adds about half the value of
what it costs to the plane.

-Cory

--
************************************************** ***********************
* The prime directive of Linux: *
* - learn what you don't know, *
* - teach what you do. *
* (Just my 20 USm$) *
************************************************** ***********************