If this is your first visit, be sure to check out the FAQ by clicking the link above. You may have to register before you can post: click the register link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. |
|
|
Thread Tools | Display Modes |
|
#1
|
|||
|
|||
First Purchase Price Question
Hi, All;
Have looked at some a/c for sale, and have found one I'm interested in. The bird has not been flown in over two years, and is out of annual. The owner said that he would have an annual done before quoting me a price; guess he figures it will be worth more as a result. This was one of those situations where I noticed a plane that didn't seem to have much use, so I decided to contact the owner. So, an annual was scheduled. The A&P (has never seen this a/c before) says that it needs quite a bit of work. Needs a top overhaul, some brake work, nose strut rebuilt, and some other lesser items. Otherwise, the airframe is in good shape; paint fair, but passes the 20' test, needs some carpet and plastic. What is usual here for working up a price, realizing that there probably isn't any typical way of handling the negotiations? At this point, nothing is signed. The owner is stating that if everything was working fine, it would be worth "X" dollars, and he is considering the option of selling it for "X" minus the estimated cost of repairs for the items above. My thoughts are that since a test flight has not occured, that more things might crop up, so the price should be decremented some more. Is there any rule of thumb for these situations? It's a common simple plane, but I'd really prefer to work with something local at my current airport instead of continuing to hunt all over the state/country. Thanks; Carl |
#2
|
|||
|
|||
If you really like the aircraft in question. Figure out what it is
worth , minus the needed repairs and add in $10K extra, because sure as s**t there is more. For every cockroach you see, there are a hundred others hiding somewhere. On Sat, 25 Oct 2003 19:12:57 -0500, "Carl Orton" wrote: Hi, All; Have looked at some a/c for sale, and have found one I'm interested in. The bird has not been flown in over two years, and is out of annual. The owner said that he would have an annual done before quoting me a price; guess he figures it will be worth more as a result. This was one of those situations where I noticed a plane that didn't seem to have much use, so I decided to contact the owner. So, an annual was scheduled. The A&P (has never seen this a/c before) says that it needs quite a bit of work. Needs a top overhaul, some brake work, nose strut rebuilt, and some other lesser items. Otherwise, the airframe is in good shape; paint fair, but passes the 20' test, needs some carpet and plastic. What is usual here for working up a price, realizing that there probably isn't any typical way of handling the negotiations? At this point, nothing is signed. The owner is stating that if everything was working fine, it would be worth "X" dollars, and he is considering the option of selling it for "X" minus the estimated cost of repairs for the items above. My thoughts are that since a test flight has not occured, that more things might crop up, so the price should be decremented some more. Is there any rule of thumb for these situations? It's a common simple plane, but I'd really prefer to work with something local at my current airport instead of continuing to hunt all over the state/country. Thanks; Carl |
#3
|
|||
|
|||
As they say, a plane (or anything else, for that matter) is only worth as
much as what someone is willing to pay for it. You can say you have a penny worth $100 only if you can find someone willing to give you $100 for it. You don't say what make/model you're looking at; which doesn't make too much difference. For example, if you're trying to buy a C150 that averages about $25k in certain areas that needs $10k worth of work to get flying, you 'should' be able to get it for under $15k. Look around and to see if there are similar makes and models in your area that don't need as much work and are flyable to compare prices. There are some good buys out there if you do your homework. Also, work with the seller. If he says it's worth $x if it's fixed up or $y as is, offer him something less than $x or $y and see if he accepts it. When I bought my aircraft, I waited for the seller to come down on the price and saved $3,500 from his original asking price. YMMV "Carl Orton" wrote in message ... Hi, All; Have looked at some a/c for sale, and have found one I'm interested in. The bird has not been flown in over two years, and is out of annual. The owner said that he would have an annual done before quoting me a price; guess he figures it will be worth more as a result. This was one of those situations where I noticed a plane that didn't seem to have much use, so I decided to contact the owner. So, an annual was scheduled. The A&P (has never seen this a/c before) says that it needs quite a bit of work. Needs a top overhaul, some brake work, nose strut rebuilt, and some other lesser items. Otherwise, the airframe is in good shape; paint fair, but passes the 20' test, needs some carpet and plastic. What is usual here for working up a price, realizing that there probably isn't any typical way of handling the negotiations? At this point, nothing is signed. The owner is stating that if everything was working fine, it would be worth "X" dollars, and he is considering the option of selling it for "X" minus the estimated cost of repairs for the items above. My thoughts are that since a test flight has not occured, that more things might crop up, so the price should be decremented some more. Is there any rule of thumb for these situations? It's a common simple plane, but I'd really prefer to work with something local at my current airport instead of continuing to hunt all over the state/country. Thanks; Carl |
#4
|
|||
|
|||
"Carl Orton" wrote in message ... Hi, All; Have looked at some a/c for sale, and have found one I'm interested in. The bird has not been flown in over two years, and is out of annual. The owner said that he would have an annual done before quoting me a price; guess he figures it will be worth more as a result. This was one of those situations where I noticed a plane that didn't seem to have much use, so I decided to contact the owner. So, an annual was scheduled. The A&P (has never seen this a/c before) says that it needs quite a bit of work. Needs a top overhaul, some brake work, nose strut rebuilt, and some other lesser items. Otherwise, the airframe is in good shape; paint fair, but passes the 20' test, needs some carpet and plastic. What is usual here for working up a price, realizing that there probably isn't any typical way of handling the negotiations? At this point, nothing is signed. The owner is stating that if everything was working fine, it would be worth "X" dollars, and he is considering the option of selling it for "X" minus the estimated cost of repairs for the items above. My thoughts are that since a test flight has not occured, that more things might crop up, so the price should be decremented some more. Is there any rule of thumb for these situations? It's a common simple plane, but I'd really prefer to work with something local at my current airport instead of continuing to hunt all over the state/country. Thanks; Carl Unless you're getting an absolute steal, I think you'd be foolish to buy the airplane before the annual is done, a pre-purchase inspection is done by an AI in your employ (preferbably the one you'll use for the forseeable future), and the aircraft is flown for a couple of hours with you and either the owner or an instructor. A poorly maintained airplane can be a moneypit of unbelievable proportions. Something like the house I bought last year, but that's another story. KB |
#5
|
|||
|
|||
"Kyle Boatright" wrote in message
t... A poorly maintained airplane can be a moneypit of unbelievable proportions. Something like the house I bought last year, but that's another story. A '2 story' house??? ;-) As others have said, keep looking. Unless you have the funds and time to stick into this aircraft, your money could be spent better on something else... |
#6
|
|||
|
|||
"Carl Orton" wrote: Have looked at some a/c for sale, and have found one I'm interested in. The bird has not been flown in over two years, and is out of annual. Keep looking. Unless you can absolutely steal this airplane and are willing to put up with possibly months of headaches, walk away from this one. It's a buyers market. There are plenty of good airplanes out there. -- Dan C172RG at BFM |
#7
|
|||
|
|||
Carl Orton wrote: My thoughts are that since a test flight has not occured, that more things might crop up, so the price should be decremented some more. Is there any rule of thumb for these situations? Dunno about a simple rule of thumb, but here's mine. Take the value of a similar aircraft in average condition. Subtract the amount that it would take to repair the known deficiencies. Your first offer should be in this ballpark. Then take the same average value of a similar aircraft and subtract half the amount it would take to repair the known deficiencies. Under no circumstances should you allow the owner to negiotiate the price higher than this. Yoy take your chances on unknowns. George Patterson You can dress a hog in a tuxedo, but he still wants to roll in the mud. |
#8
|
|||
|
|||
This is way too much to pay. Once the airplane is made airworthy and is
flying, other deficiencies will become apparant. Mike MU-2 "G.R. Patterson III" wrote in message ... Carl Orton wrote: My thoughts are that since a test flight has not occured, that more things might crop up, so the price should be decremented some more. Is there any rule of thumb for these situations? Dunno about a simple rule of thumb, but here's mine. Take the value of a similar aircraft in average condition. Subtract the amount that it would take to repair the known deficiencies. Your first offer should be in this ballpark. Then take the same average value of a similar aircraft and subtract half the amount it would take to repair the known deficiencies. Under no circumstances should you allow the owner to negiotiate the price higher than this. Yoy take your chances on unknowns. George Patterson You can dress a hog in a tuxedo, but he still wants to roll in the mud. |
#9
|
|||
|
|||
In article , "Carl Orton"
wrote: The bird has not been flown in over two years, and is out of annual. Unless it was prepared for 2 year storage, accept that there may be corrosion inside the engine. I personally would not even consider this aircraft. There are lots of good ones out there. -- Tony Roberts ) PP-ASEL VFR-OTT - Night Cessna 172H |
#10
|
|||
|
|||
UPDATE: Between the time the original note was posted and now, the deal has
fallen through. Owner decided the plane was worth more to him even with adding all the rework rather than selling for a loss. Thanks for the responses, though! Carl "Carl Orton" wrote in message ... Hi, All; Have looked at some a/c for sale, and have found one I'm interested in. The bird has not been flown in over two years, and is out of annual. The owner said that he would have an annual done before quoting me a price; guess he figures it will be worth more as a result. This was one of those situations where I noticed a plane that didn't seem to have much use, so I decided to contact the owner. So, an annual was scheduled. The A&P (has never seen this a/c before) says that it needs quite a bit of work. Needs a top overhaul, some brake work, nose strut rebuilt, and some other lesser items. Otherwise, the airframe is in good shape; paint fair, but passes the 20' test, needs some carpet and plastic. What is usual here for working up a price, realizing that there probably isn't any typical way of handling the negotiations? At this point, nothing is signed. The owner is stating that if everything was working fine, it would be worth "X" dollars, and he is considering the option of selling it for "X" minus the estimated cost of repairs for the items above. My thoughts are that since a test flight has not occured, that more things might crop up, so the price should be decremented some more. Is there any rule of thumb for these situations? It's a common simple plane, but I'd really prefer to work with something local at my current airport instead of continuing to hunt all over the state/country. Thanks; Carl |
Thread Tools | |
Display Modes | |
|
|
Similar Threads | ||||
Thread | Thread Starter | Forum | Replies | Last Post |
VOR/DME Approach Question | Chip Jones | Instrument Flight Rules | 47 | August 29th 04 05:03 AM |
Floridians Are Hit With Price Gouging | X98 | Military Aviation | 0 | August 18th 04 04:07 PM |
Garmin Price Fixing Post from other newsgroup | TripodBill | Instrument Flight Rules | 8 | July 16th 04 04:50 PM |
150HP Grumman Super Yankee FS Price Reduced! | Bill Berle | Home Built | 6 | December 2nd 03 12:55 AM |
The Top 10 Reasons to Purchase "New" | Patty | Owning | 4 | August 4th 03 10:44 PM |