Damage history value

burgundyja · #1 06-23-2020, 06:26 AM

What do you think the reduction in value is for a rv with damage history? Lets say a ground loop with prop strike and full rebuild of engine and prop by shops. All other damage properly repaired. Thanks

1001001 · #2 06-23-2020, 06:39 AM

I would guess it would depend on the extent of damage, how it was repaired, and how long it's been since it occurred, to some degree. My old Piper Warrior had an accident in 1983 that resulted in replacement of the outboard several feet of the left wing, and that didn't appear to have any effect on the price when I bought it or sold it.

My current Mooney 201 had what appears to have been a gear-up landing around 20 years ago that also had no apparent effect on its value compared to other 201s of the same vintage and equipment.

catmandu · #3 06-23-2020, 08:21 AM

For me personally I don't care about damage as long as it was repaired properly. But, I know it matters to others so I should take that into consideration when I might want to sell. A recent appraisal on an $90k aircraft with wing skin puncture and repair four years ago due to a failed rib near the landing gear ($20k repair) showed a deduction of $2k for damage, FWIW.

sf3543 · #4 06-23-2020, 08:47 AM

Properly repaired with new parts and noted in the logs should be the same as new. Especially if it is a prop strike and engine rebuild since the prop is usually replaced with new and the engine typically goes back to the factory or a reputable shop for tear down and rebuild.
You would probably be surprised at all of the damage that gets repaired and not logged.
There are many unscrupulous sellers out there who do not disclose sketchy repairs to unwary buyers.
I once inspected a plane that had an owner repaired spar that was covered up with a new skin and not disclosed!

bkthomps · #5 06-23-2020, 08:51 AM

What does a bank say? Some banks will not loan on an airplane with damage history, so that should be a huge factor- if you have the cash to own something outright, great- good for you, that's not relevant, but the ability to finance something affects its value, as does the ability to insure something

Assigning a number to that is trivial, but I would say at least 20%

cajunwings · #6 06-23-2020, 09:22 AM

Like so many other things it depends on all of the things previously mentioned. I?ve never heard of lending institutions not willing to finance, maybe someone in that world can comment. 5-10% total value reduction is probably a good starting point for a buyer or seller. The damage history planes I?ve been involved with have more or less cost 10% less to buy and at sale time if years later 3-5% less than no damage history. I spent years in aircraft structural repair field and have zero issues with properly repaired and well documented damage repair.

Don Broussard A&P, IA, ATP
RV9 Rebuild in Progress
57 Pacer

abwaldal@gmail.com · #7 06-23-2020, 09:38 AM

I guarantee you that if you buy/sell a salvage title car it effects the value so it goes that a salvage airplane will take a hit also.
If I'm looking to buy a $20.000.00 Nissan 370Z for a street hot rod the value is gonna take a $3-5,000.00 hair cut being a salvage title. Ya even if it was only a back bumper and deck damage. Insurance companies will total a car easily now a days and it effects value.
The mentality is "it's BAD". Crazy as it is. I cut my finger so I have a damage title. Ha Ha.
My 40 year old son won't even look at something if it was damaged in the past. Goes the same for pilots.
Now it's good to get a low cost vehicle (car, plane, boat etc) for less. But your "probably" going to get less when you sell it.
I have two of those Salvage title vehicles in my garages and they run just fine, But, I'm not selling them till they are all used up.
Your luck may be different. Art

WingsOnWheels · #8 06-23-2020, 10:22 AM

Salvage title is a whole lot different than damage history. repaired hangar rash could count as damage history, just like repairing a door ding on a car. That wouldn't change the value. Recovering a plane written off by the insurance repairing it to flight status, yes that would certainly have a significant impact. So, it just depends...

Quote:

Originally Posted by abwaldal@gmail.com

I guarantee you that if you buy/sell a salvage title car it effects the value so it goes that a salvage airplane will take a hit also.
If I'm looking to buy a $20.000.00 Nissan 370Z for a street hot rod the value is gonna take a $3-5,000.00 hair cut being a salvage title. Ya even if it was only a back bumper and deck damage. Insurance companies will total a car easily now a days and it effects value.
The mentality is "it's BAD". Crazy as it is. I cut my finger so I have a damage title. Ha Ha.
My 40 year old son won't even look at something if it was damaged in the past. Goes the same for pilots.
Now it's good to get a low cost vehicle (car, plane, boat etc) for less. But your "probably" going to get less when you sell it.
I have two of those Salvage title vehicles in my garages and they run just fine, But, I'm not selling them till they are all used up.
Your luck may be different. Art

Desert Rat · #9 06-23-2020, 10:36 AM

I don't believe its possible to answer this question with anything other than "it depends"

In a hangar that had 3 feet of flood water in it? Wouldn't buy it for more than the cost of scrap aluminum because theres a good chance that it's going to have long term corrosion problems no matter how well it polished up.

Upper wing skins r&r due to hail damage? Thats another number.

Wing tip replaced due to hitting a hangar door? Not going to worry too much about it.

The example you give with a ground loop & prop strike would depend on if there were structural repairs or just wheel pants and a wingtip or whatever, but it wouldn't be nothing. Look at it this way; If you had two identical airplanes sitting in front of you but one had damage history, which one would you want to buy? Now how much cheaper would the other one need to be for that feeling to go away?

Mark Dickens · #10 06-23-2020, 10:44 AM

If you're the one thinking of making an offer, then offer what it's worth to you. If the deal happens, it happens, if not, move on. If I'm selling this plane, it's either airworthy with all damage, visible or not, fixed or I'll price it at a fair price given its condition. Again, the deal happens or it doesn't. There's no fixed way to account for damage history