Resale Value of RV's?

AWOL Arn · #1 05-23-2006, 01:30 AM

Hello all,
I'm really new to the idea of building my own plane. I am considering purchasing a used certified plane (Mooney or such) or building one. I'm a new airline pilot so I always ask the captains I fly with. Today one told me that he wouldn't build one b/c the resale value if you have to get rid of it is terrible, whereas a good used certified plane could usually be sold for nearly its purchase price.

I am in the process of selling my boat. I've had it for 4-1/2 years, put over $32,000 in it and am hoping I can sell it for $13,000. After this lesson, I'm leary of getting so upside-down in a homebuilt aircraft. While i know that if I build one, I intend on keeping it for the long term (it goes after I die). But I also know life has a way of sometimes dealing us a new hand.

I'd really like to hear any thoughts you have on this subject. A friend who just started building stated that I could always sell a kit for near its purchase price. A couple other folks I know say that I'd be lucky to ever sell a homebuilt plane, and if I did, I'd lose a ton of money. What say you?

Thanks!!!
Cheers y'all.
Arn, Captain (soon to be former), The Good Ship AWOL.

PS, The $10,000 left over from the boat sale would buy an emp kit and tools........

rv8ch · #2 05-23-2006, 02:08 AM

From what I can see by looking at the RVs for sale in various places, the resale value is pretty good. Of course, if you build it, and bill your time at $100/hour, then you'll never get that kind of money back.

I think if you build or don't build an RV because of the resale value, then I think you may want to get a ride in an RV. You may be missing the reason why these aircraft are so popular.

There is a great thread here talking about why various people decided to start building an RV. http://www.vansairforce.com/communit...ead.php?t=7865

Good luck with your decision process!

rv72004 · #3 05-23-2006, 02:42 AM

I think what you get for your RV is directly proportional with the quality of workmanship and equipment .

The advantage is you get to fly it. Cant fly with stocks ,shares ,property or any such investment, even though they may be better.

As far as aircraft go, RV seem to be a pretty sure bet.

trib · #4 05-23-2006, 03:03 AM

How did it work out getting your money back for investment in a boat? A certified airplane may be the same. Pay 25K for it, invest another 50K for upgrades and the annual costs, then hope to get the 25K you paid for it back! Cost savings on annuals and repairs over 5 years could be a significant savings, since you're doing them yourself. I remember reading in sport aviation last year about a Mooney, supposedly in very good shape, which costs tens of thousands after the first annual revealed corrosion damage. You'll be getting a brand new airplane when you build the RV.

Just some food for thought.

JordanGrant · #5 05-23-2006, 04:53 AM

I think you are actually not likely to get your purchase price back for a used kit (that is not complete). I personally would not pay full price for kit that was worked on by an unknown person when I could buy the latest, greatest, brand new kit straight from Van's. I might buy it, but I would demand a big discount for the additional risk I'm taking.
Its been my theory that my project gained about $30K in value the day it flew. Until then, it was a "project", not worth the same as an "airplane".
FYI: Judging by the RVs for sale, I think I could easily get $70K for my airplane, possible $80K+ if I was patient and somebody really liked mine. I've invested maybe $60K - that means my 2500 hours of labor were worth about $4/hour.
As always, YMMV.

Highflight · #6 05-23-2006, 04:53 AM

Another point to make is that if you browse the ads over time specifically with regard to RV's, you'll see that airplanes sold at any time before they fly (with the first 40 hours flown off) take a hit and don't usually sell for what was paid up to that point.
Also, your RV will sell much better in the future if you don't go too "Experimental" with it. Stay with a Lycoming or clone engine, and don't make any mods that don't conform with Van's plans and how it was intended to be built.

However, once the RV becomes a flying registered AC, it will then typically sell for more than what was put into it (labor not included).
So if you're going to build, make sure you finish it.

I know for sure that mine will be up for sale at some point simply because I'm sure I'll bounce my medical in the next few years. So the way I look at it, I'll almost for sure get what I paid for it (although I'm building it for "free") and maybe even a little more. Considering the kinds of memories I get to put away in the memory bank to reflect on later, I can't think of a better investment (sort of like if you bought Google at it's IPO

) even if I couldn't sell it for half what I paid.

In short; it ain't about the money, but the money can be there if you go through with the plan.
Still, I promised my wife that if anything happened to me, she could sell the RV and get all "her" money back. So if Mrs. Highflight posts at some point that she has an RV for sale due to unforeseen circumstances, I hope you guys will help her find my baby a home at a decent price. (The plane, man, the plane.)

pierre smith · #7 05-23-2006, 05:45 AM

We finished our RV6A last November (well, finished enought to fly) and finally have all the fairings, wheel pants, etc on. I figured that it jumped in value by at least $!0,000 as soon as the wheels left the ground for the first time.

As the other guys mentioned, an unfinished kit will take a hit. I call it the shark syndrome because everyone figures that the seller REALLY needs to sell for whatever reason. On the other hand, I don't see many RVs selling for less than the sum of their parts,

N395V · #8 05-23-2006, 06:15 AM

A plane (certified or experimental) is worth what you are willing to pay for it and the buyer is willing to accept. If you pay too much you will not recover it when you sell. If you get a bargain you will make a profit.

The market swings wildly with fuel prices, govt proposed rulemaking and perpetuation of BS such as you were given about value of experimental vs production.

You cannot beat the quality of a well built RV. In my opinion no production plane comes close. You cannot beat the performance of an RV or it's variants.

The operating costs or costs of ownership of an RV/experimental are miniscule compared to that of a production aircraft.

Young girls crawl out of the woodwork and want to have their way with RV pilots.

Bonanza owners attract 50 year old women caked in makeup who want you to take them shopping.

Do yourself a favor and build an RV.

John_RV4 · #9 05-23-2006, 06:44 AM

I have a few friends with certified Single engine retracts. Annuals have been averaging $25-30k /year. That is not a misprint. One guy just went through his 3rd year in a row over $25k. On the first trip after annual. The plane broke down and he dropped another $1k to get if home again.

Unless you can swing that without sweating it, you might want to reconsider that class of airplane.

Good luck in your decision.

John

N395V · #10 05-23-2006, 07:17 AM

Quote:

A friend who just started building stated that I could always sell a kit for near its purchase price. A couple other folks I know say that I'd be lucky to ever sell a homebuilt plane, and if I did, I'd lose a ton of money. What say you?

I would say............

None of them seem to exhibit knowledge based on experience or fact.