If GA is down, why aren't used aircraft prices?

If the number of private pilots is down from 299,000 to 236,000, why are
prices for used aircraft maintaining and even out pacing inflation?

Economics 101, first day of class - price is determined by supply and
demand. Yet I've noticed over the past couple of years the average price
for a late '70's Cessna 172 has floated up from $59,000 to $66,000.
Cessna 150s have gone from $22,000 to $26,000.

Mind you, this is a completely subjective observation on my part, but it
does seem accurate.

--
Dallas

"Dallas" wrote in message
...

If the number of private pilots is down from 299,000 to 236,000, why are
prices for used aircraft maintaining and even out pacing inflation?

Economics 101, first day of class - price is determined by supply and
demand. Yet I've noticed over the past couple of years the average price
for a late '70's Cessna 172 has floated up from $59,000 to $66,000.
Cessna 150s have gone from $22,000 to $26,000.

Mind you, this is a completely subjective observation on my part, but it
does seem accurate.



Not disagreeing, but have you considered that the demand for privately
(personal or club) owned planes might be increasing even though the numbers
of actual pilots are down? In other words, it may be more of a case that
there are more people now who can afford the planes...

--
Doug Semler, MCPD
a.a. #705, BAAWA. EAC Guardian of the Horn of the IPU (pbuhh).
The answer is 42; DNRC o-
Gur Hfrarg unf orpbzr fb shyy bs penc gurfr qnlf, abbar rira
erpbtavmrf fvzcyr guvatf yvxr ebg13 nalzber. Fnq, vfa'g vg?

In article ,
Dallas wrote:

If the number of private pilots is down from 299,000 to 236,000, why are
prices for used aircraft maintaining and even out pacing inflation?

Economics 101, first day of class - price is determined by supply and
demand. Yet I've noticed over the past couple of years the average price
for a late '70's Cessna 172 has floated up from $59,000 to $66,000.
Cessna 150s have gone from $22,000 to $26,000.

Mind you, this is a completely subjective observation on my part, but it
does seem accurate.

Does it reflect the higher costs of avionics such as all those moving
map gizmos that seem so popular?

--
Bob Noel
(goodness, please trim replies!!!)

"Dallas" wrote:

If the number of private pilots is down from 299,000 to 236,000, why are
prices for used aircraft maintaining and even out pacing inflation?

That was true from 5-20 years ago, not now.

--
Dan
T-182T at BFM

Mind you, this is a completely subjective observation on my part, but it
does seem accurate.

Dunno which stats you're looking at, but prices *have* dropped,
dramatically.

Our Pathfinder briefly flirted with a $90+ thousand dollar value, back
in '03 - '04.

Now, I'd be lucky to get $75K for it. The market is way down,
especially for planes powered by the big-bore Lycs (like mine) and
Continentals, thanks to $4/gallon gas.
--
Jay Honeck
Iowa City, IA
Pathfinder N56993
www.AlexisParkInn.com
"Your Aviation Destination"

On Aug 25, 11:24 am, Dallas wrote:
If the number of private pilots is down from 299,000 to 236,000, why are
prices for used aircraft maintaining and even out pacing inflation?

Economics 101, first day of class - price is determined by supply and
demand. Yet I've noticed over the past couple of years the average price
for a late '70's Cessna 172 has floated up from $59,000 to $66,000.
Cessna 150s have gone from $22,000 to $26,000.

Mind you, this is a completely subjective observation on my part, but it
does seem accurate.

--
Dallas

Perhaps the supply of old airplanes is dwindling... hull losses,
scrapped out due to airworthiness issues that exceed the hull value,
etc. etc.

That is the other side of the equation. Does anyone have any data on
the rate of GA hull retirements/losses?

Dean W
AeroLEDs LLC
www.aeroleds.com

"Bob Noel" wrote in message
...


Does it reflect the higher costs of avionics such as all those moving
map gizmos that seem so popular?


Huh. Didn't even think of that...Probably reflects my youth g

--
Doug Semler, MCPD
a.a. #705, BAAWA. EAC Guardian of the Horn of the IPU (pbuhh).
The answer is 42; DNRC o-
Gur Hfrarg unf orpbzr fb shyy bs penc gurfr qnlf, abbar rira
erpbtavmrf fvzcyr guvatf yvxr ebg13 nalzber. Fnq, vfa'g vg?

On Sat, 25 Aug 2007 12:57:32 -0700, Jay Honeck wrote:

Dunno which stats you're looking at, but prices *have* dropped,
dramatically.

Like I said... not very scientific, just thumbing through Aero Trader,
Controller and Trade-A-Plane.

It is true that I've been paying special attention to 150's and 172's,
maybe those are experiencing a boom market... I can tell you for sure that
150 prices have been rising very regularly.

I've got a stock that was worth $20,000 in 2005, about the same as a 150 in
2005. Now that stock is worth $25,000 and well outfitted 150's have gone
up to $26,000.

I should have invested in 150's for a better rate of return. :-)


--
Dallas

"Dallas" wrote in message
...

I should have invested in 150's for a better rate of return. :-)

You don't have to pay maintenance, parking, & insurance etc. on a stock.

I have a chunk of vacant land that has increased to at least 5X its
original value over the last 20 years I have owned it. That sounds great right?
Wrong! When you consider the taxes I have been paying, the interest on the
original investment, the transaction costs and the continuing cost of capital,
it is a fool's investment.

Vaughn

I have a chunk of vacant land that has increased to at least 5X its
original value over the last 20 years I have owned it. That sounds great right?
Wrong! When you consider the taxes I have been paying, the interest on the
original investment, the transaction costs and the continuing cost of capital,
it is a fool's investment.

Yes, but your children will enjoy the profits when they sell to
McDonalds...

;-)
--
Jay Honeck
Iowa City, IA
Pathfinder N56993
www.AlexisParkInn.com
"Your Aviation Destination"