Resale Value

[SP_Laser]

Does anyone have any good data on the resale value of the new SLSA composite aircraft, like the sport sting, sport cruiser, Tecnam...etc?


I'm working on a business plan for a training parternership and I can't seem to find good resale data.

There is also concern that the recent dollar slide against the euro will mask the actual depriciated value because the cost of a new aircraft has risen so high it drags up the resale price of existing models.
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vapor genie vaporizer

[rfane]

There is also concern that the recent dollar slide against the euro will mask the actual depriciated value because the cost of a new aircraft has risen so high it drags up the resale price of existing models.

And what exactly is wrong with that? Of course I already own one that benefits from that scenario.

By the way, the Tecnam's are not composite.

[tadel001]

Sport Cruiser and Tecnam are metal aircraft. The resale values are not going down unless you buy a model that has been significantly upgraded/improved. For accounting purposes, I think you can depreciate over 5 years. But then if you sell the plane in year 4, you will likely have a good chunk of capital gains.

[CharlieTango]

it will take time for the resale on glass slsa's to have a good basis. how well they hold up especially if not hangared remains to be seen.

[iagflyer]

I too would like to see the data that SP_Laser is looking for, but I don't think it exists yet either.
But, just in case let me throw out this scenario...

Purchase new plane for $100,000
Fly the plane in a training environment for 3 years, let's say 300 hours per year. Sell the plane with ~900 TT. What would you assume the plane would be worth? 60K, 70K, 80K????
I know... Too many possible factors to even guess, but try...

Peer into your crystal ball and make your best guess. Remember all the factors already discussed such as dollar strength, LSA market, manufacturers stability, Cessna's actual delivered output (which will affect the market)

My guess would be mid 70's, but I guess we'll have to wait and see

[tadel001]

Resale value is going to primiarly be driven by two factors: (1) Supply & Demand and (2) building cost. I think the first is self explanatory. The second, is how much will a new/replacement plane cost in 3 years. If you look at the LSA prices over the past 3 years, they have steadily risen. Shipping cost have gone up, materials have gone up, Rotax raises their price regularly, the dollar has fallen...For the composites, the biggest cost increase has been the composite material. Boeing purchase an overwhelming amount of composite material for their new plane, stripping the market.

So, what does the next three years look like? My guess for LSAs is continued appreciation. I would think an LSA with 900 hours on it in 3 years with an initial price of $100,000 would be worth $90-$100K. Put a little discuont in there for engine overhaul and that is probably about the majority of depreciation assuming the plane is cosmetically in good shape.

[wickedsprint]

I don't know if I buy the appreciation angle.(pun) If a new one is still available for 100k..or even 110k, I'd be real hesitant over buying a used one with flight school history for anywhere near that price.