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Moderator: drseti
Re: Question About Depreciation
It is a hard question to answer. The farther you get away from new the less it normally is. I'm not sure if the 3rd class medical reform will have any effect. Since I have been watching such things I've seen some aitplanes increase 20% in 5 years. In 2008 some airplanes dropped in value 30% or more. Some have stayed fairly flat, but they were the ones in the lower price range. In my opinion, unless there is a major change in the economy the depreciation will likely be around the 5% mark.
Re: Question About Depreciation
I think if they were still making SkyCatchers you could compare new with used models. As it is there are now a finite number some with low time and a careful single owner and some high time training school planes.
Repainting and updating avionics is a huge variable, sure you won't recoup their cost but it does make the airplane more attractive.
Since depreciation seeks to determine how value changes over the life of the asset using time and wear I would think airplanes are harder compared to cars etc. If you had a 'new' airplane hardly used versus a 'reasonably' used and maintained one how would they compare in the real world versus on paper?
Repainting and updating avionics is a huge variable, sure you won't recoup their cost but it does make the airplane more attractive.
Since depreciation seeks to determine how value changes over the life of the asset using time and wear I would think airplanes are harder compared to cars etc. If you had a 'new' airplane hardly used versus a 'reasonably' used and maintained one how would they compare in the real world versus on paper?
- FastEddieB
- Posts: 2880
- Joined: Wed Jan 07, 2009 9:33 pm
- Location: Lenoir City, TN/Mineral Bluff, GA
Re: Question About Depreciation
So hard to put a number on.
I bought a Grumman Tiger in 1992 for $32k and sold it in 2003 for about $62k. Admittedly, I had sunk about $20k into a Garmin 430 upgrade and panel refresh.
I bought my Cirrus as a factory demo for $330k in 2003 and sold it in 2007 for $290k with about 500 more hours on it. Admittedly, added built-in oxygen to the tune of $6k.
My Sky Arrow was $75.5k new. But new ones today are over $110k, which has to drag up used prices a bit. We see the same thing with CT's, I think, with used examples going for close to their new price.
The fact that new SkyCatchers can't be had for any price further complicates thing, as does the net effect of inflation.
Good luck, but I think any number you put on depreciation is going to be a pretty wild guess.
I bought a Grumman Tiger in 1992 for $32k and sold it in 2003 for about $62k. Admittedly, I had sunk about $20k into a Garmin 430 upgrade and panel refresh.
I bought my Cirrus as a factory demo for $330k in 2003 and sold it in 2007 for $290k with about 500 more hours on it. Admittedly, added built-in oxygen to the tune of $6k.
My Sky Arrow was $75.5k new. But new ones today are over $110k, which has to drag up used prices a bit. We see the same thing with CT's, I think, with used examples going for close to their new price.
The fact that new SkyCatchers can't be had for any price further complicates thing, as does the net effect of inflation.
Good luck, but I think any number you put on depreciation is going to be a pretty wild guess.
- FastEddieB
- Posts: 2880
- Joined: Wed Jan 07, 2009 9:33 pm
- Location: Lenoir City, TN/Mineral Bluff, GA
Re: Question About Depreciation
How about a "classic" LSA? Champ, Ercoupe, that sort of thing.
If bought for the right price, very likely to appreciate rather than depreciate.
If bought for the right price, very likely to appreciate rather than depreciate.