AdamFrisch wrote:
Used aircraft prices continue down. During the last boom before 2007, and especially the one before, you couldn’t get an Aerostar for a dime below $300K. That was a bargain, and a Superstar 700 would command a cool $500K. Today my plane sits unsold after a year with a price of $135K and new engines. So, something’s changed. Back when I lived in the UK, I called Close Brothers to ask about financing a plane for me. They would lend you a higher amount depending on good engine times. The considered that to have a real value. Wanna bet they don’t do that anymore? Engines have no tangible value in todays market. Glass cockpits perhaps, but not engines.
Financing on aircraft is effectively not possible when they are 20 years plus old. Engine hours make an enormous difference to values (unles you are talking jets on engine programs when hours don’t matter). In the PA46 world prices are very tightly correlated with engine hours particularly when over 1000.
I think your new engines will help resalability. But if it isn’t selling then maybe the price is too high.
AdamFrisch wrote:
Used aircraft prices continue down.
Supply & demand, simple as that.
The number of active private pilots has shrunk over 30% over the last 10 years, yet there are no lack of legacy planes to be had as well as new kit like Cirrus.
Supply & demand.
AdamFrisch wrote:
It’s funny how the economy here in the US, and especially in California is “booming” again (I say that fully knowing the US is leveraged to the hilt and it won’t last, but for now at least). House prices have gone up about 100% from just 3 years ago.
It’s about 20-30% since 2012 depending on area and the style of house, bringing current sales prices approximately to where they were in 2007 in some areas.
The most obvious and common way for somebody to raise cash to buy a plane in the US is a fixed rate mortgage on something else like a house that already has substantial equity. That way interest on the plane loan becomes a direct income tax deduction. After tax cost of money might end up being 2 or 3% per year, i.e. very little. The real issue is the plane being a slightly depreciating high-ish value asset so in most cases you’d be building negative equity unless the depreciation is less than monthly payments on principal. If you’re old I guess that’s OK – never pay off the loan. I’m not that old and attempt to build equity with any money I might borrow.
Silvaire – here in Hollywood where I’m looking it’s more than that. Should have bought when I moved over, now I’ll never afford one in this area.
JasonC wrote:
In the PA46 world prices are very tightly correlated with engine hours particularly when over 1000.
Isn’t that true for all used piston aircraft more than, say, 10 years old?
Continuing on the Aerostar theme, this caught my eye. For a guy who could figure out how to source or overhaul a couple of non-turbo angle valve IO-540s inexpensively at some point in the foreseeable future… What a cool hot rod, simple and fast.
In reference to the last 2015 posts above, if somebody in the area where this plane is located had bought a local rental house then, it could be sold today with appreciation enough to buy this Aerostar. Time flies.
Silvaire wrote:
For a guy who could figure out how to source or overhaul a couple of non-turbo IO-540s inexpensively at some point in the foreseeable future
Agree – if I had the budget, this is the airplane I’d buy. An IO-540 o/h runs around $40k or so plus de/re-install. Realistically you’re looking at around $ 100k for both once everything is taken care of.
Silvaire wrote:
Continuing on the Aerostar theme
Both are 2000kg+… Enroute charges in Europe…
172driver wrote:
if I had the budget, this is the airplane I’d buy. An IO-540 o/h runs around $40k or so plus de/re-install. Realistically you’re looking at around $ 100k for both once everything is taken care of.
Assuming no crankshaft or case weirdness, I could get the engines done for circa $20 K each, hands on, but both the logbook entries and the work involved might not appeal to prospective Aerostar buyers 
A friend is on his fourth or fifth angle valve IO-540 overhaul, part of buying, repairing and selling damaged aerobatic planes to make a buck. He’s all set up to do it now including knowing who can do the machine work competently and inexpensively. There’s a network of suppliers below the visible overhaul shops. His A&P business partner signs them off.
The appeal to me of the 600A fantasy is the simplicity of the engines and non-pressurized airframe. It’s a raw hot rod hiding in the form of a business plane. Awesome.
Silvaire wrote:
Assuming no crankshaft or case weirdness, I could get the engines done for circa $20 K each, hands on, but both the logbook entries and the work involved might not appeal to prospective Aerostar buyers A
Yep, I’m sure there are means and ways to get this done cheaper, my figures come from real-life recent experience at a very good shop in SoCal.
