It's a shame - planes given away!

andrew phillips · #1 02-26-2009, 05:34 AM

I understand that these are tough economic times that we are going through. If your plane is a luxury that needs to be sold to help you cope I sincerely commiserate with you. Luckily for me I don't need to sell my plane so I am not affected but it definitely saddens me when I see planes that are practically new being unloaded for WAY less than the cost of their parts.

I always hoped that my plane would be worth at least what I paid for the materials. When planes are sold at these values they drag down the whole market. This is much like we are seeing on the stock market today. There are many examples of companies with good fundamentals who are having their values pounded by people motivated by fear instead of sound judgment.

If you can afford it, I think you should hold out for a fair price. How many would be happy to buy any other product out there at the cost of it's materials. While you may be happy getting a quick sale on your own plane you are hurting your friends who might really need to get those extra and well deserved dollars from their sale.

This post is really just a rant. I know that market conditions dictate what really happens but I am hoping that people think twice before acting.

My retirement advisor is really optimistic. He has to be since his job depends on it! I sure hope he is right!

RickWoodall · #2 02-26-2009, 05:52 AM

I was amazed at the last 7 that sold too. Very sad to see such a nice plane go so cheap, but great news for the new owner.
As a financial advisor.....let me just say its BRUTAL, i have literally hundreds of great clients that are laid off, terminated, downsized out etc. Real people really suffering. If life was good, you didnt plan properly and have next months paycheque already spent...one bump in the road and there is a huge train wreck. I agree that all will be fine in the next year or two but...there are so many people that feel backed into a corner that i really cant blame them for panicking. Most people under 60 have never seen all their assets bleed this fast. Very painful, but just like bad weather...it always passes. I hope most with their dreams in the garage/basement and hangars can weather this perfect storm. I believe some of the most recent sales where more for other opportunities then really dire finances but either way sad to see them go.

Hopefully this will be like y2k. So many people bought generators and bottled water feeling like the world was going to end. Look back now and how funny was that. But...didnt stop people at the time from feeling like planes would fall out of the sky, nuclear reactors would fail, and the power grid would collapse. Just dumb...but people keep doing silly things, over and over.

asav8tor · #3 02-26-2009, 06:04 AM

Food............ nope
Clothing........ nope
Shelter......... nope

A RV is not one of those. When times are tough like now things get sold to cover one or more of the above list. Since people are are getting burned to the tune of 100, 200, 300, 400K or more on home values I don't know how you expect the price of 100LL eating machine to hold up.

You investment guys have Lear jets and a 100'+ Yachts, all paid for, right? I mean if you're giving out advice and charging for it I hope it's from experience and not something studied out of a book, course, or certificate program.

frankh · #4 02-26-2009, 08:48 AM

For me I always considered things like airplanes as toys.So I would never finance one and I'd never buy one until everything was paid off.

I'm currently planning on being laid off in June or October.

My current plan is if that happens I will try to sell for a decent price..if not I'll take the wings off (painful proposition) and bring it home and keep it in the shop with the engine full of cheap oil till the markets recover.

Frank

Mike S · #5 02-26-2009, 08:56 AM

Andrew, while I understand the effect of low selling on the market, I suspect that the folks who are selling their planes are doing so because of a genuine need for the money------(and they have already made a pretty hard decision just to part with "their pride-and-joy")----and thus are not in a position to hold out for a "fair" price.

What is a "fair" price anyway????

JonJay · #6 02-26-2009, 10:06 AM

Nobody but the seller knows the circumstances and we all need to respect that.

N62XS · #7 02-26-2009, 10:18 AM

Quote:

Originally Posted by frankh

For me I always considered things like airplanes as toys.So I would never finance one and I'd never buy one until everything was paid off...

Frank

I agree. Good luck Frank.

craigvince · #8 02-26-2009, 10:21 AM

None of us are children. None of us are little old ladies being taken advantage of. We all knew fully well the risks of building or buying an airplane. And we all accept the consequences with various emotions. I sold my 9A project for about 60% of my receipt value. I donated my labor to it's new owner. I learned a lot in the process, and probably wouldn't have my current job today if it hadn't been for the contacts I made and the skills I learned while building this project. I definitely don't see my time as wasted, and try not to look at money wasted.

I have adopted an "oh well" attitude, and am moving on. I will build again.

uhhuh35 · #9 02-26-2009, 10:40 AM

I bought my first home in 2000. Because it was a repo, I was able to bargain with the bank and knock 25% off the asking price. I wouldn't have been able to buy a home much less afford one if the economy wasn't down at that time.
That's how the market works. (I'm not trying to lecture you)
......
I certainly wouldn't as I'd love to benefit from someone elses desire to unload his/her project on the cheap now that I have the money.

Which reminds me, I gotta' put an ad in the classified section for an RV-9 tail with electric trim in the So Cal area I gotta' unload cheap.

alpinelakespilot2000 · #10 02-26-2009, 10:47 AM

Just my opinion, but bad economy or not, the days of selling an experimental for a big (or maybe even a small) profit are probably going away for good, except for the rare cases. There has been such a profusion in the number of RVs built over the last few years (and way more are in the hopper) that the supply is increasing exponentially. I doubt that the demand (or, put differently, the "supply of buyers") for "home-built," or "amateur-built" experimentals is going up as fast as the rate of completions. Might be worth considering if either we're thinking of our planes as financial investments or even "safe-havens," or if we are borrowing money to build and/or buy them. Again, just my .02.