First to Fly Mooney Acclaim Auction - July 11th

[ArtVandelay]

I've often wondered how large this demographic is?  And of course, of this group, what percentage are wealthy enough to fly MUCH more expensive aircraft such as jets or turbines such as the Pilatus.  I'm certainly a Mooney supporter and fan, but I also make my living in Sales, and the market seems to be very small for new Ovations or Acclaims.

In the USA, you are correct, but GA growth areas are China, Brazil, Russia....places that are big and don't have our transportation infrastructure.

[gsxrpilot]

I would agree with you and I've just returned to the US from 4 years running the Asia operations of our company.  But I don't think Mooney's fit that space any more than Porsche is building vehicles to to solve a practical transportation problem.

 

I hope I'm wrong because I certainly want Mooney to prosper.  I like the good folks in Kerrville and I'd like to think someday, maybe 20 years from now I'll be in the market for a 2014 model Ovation.  :-) 

[Marauder]

I would love a new Mooney, but the cost of entry doesn't fit into my retirement plans. At least not with the prices we are talking currently. I agree with gsxrpilot's comments about the Asia market. We sell for a lot less in most parts of Asia. As well, Europe may have a benefit with currency exchange, but fuel and other costs make it hard for them as well.

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[DaV8or]

In the USA, you are correct, but GA growth areas are China, Brazil, Russia....places that are big and don't have our transportation infrastructure.

 

I don't get it. So you're saying there is a bunch of wealthy people in those places that are ready to buy a $700,000 airplane they can't really use??

[ArtVandelay]

I don't get it. So you're saying there is a bunch of wealthy people in those places that are ready to buy a $700,000 airplane they can't really use??

Yes, there is wealthy people in other countries. Why can't they use a mooney to fly from point a to b, just like we do?

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[Bob - S50]

Maybe you're looking at it from the wrong angle.

 

If I go to an auction, I do it to get a deal.  If you were going to bid on a car, would you bid full retail price and not be able to pick out the options you want nor the color?

 

There are a couple groups of people that might bid on it.  Those that want the airplane and see an opportunity to get one for a good price.  And those that hope to get a good enough deal that they can turn around and sell it for a profit.  You can't do that if you pay full price.

 

Bob

[Jeff_S]

I don't see much downside in the outcome of this.  It raised publicity for sure, with the money going to a good cause. And it may have helped established a market value for the fastest single-engine piston airplane...sorry, fastest "certificated" single engine piston airplane. I'm sure there are some experimentals out there who can beat it.

 

Call the winning bid $650K, that's less than 10% off their list price for a new Acclaim.  Now, I've never bought a factory new airplane, but I can't imagine that they go at full retail, unless of course the buyer is a Catholic. (Hey, I grew up Catholic so I can make the joke!)  I'm sure these things always get negotiated, especially if there is an entity buying more than one unit (possibly some Chinese corporations?).  So in my book, I think the auction came off pretty darn well for Mooney and for the overall valuation of these aircraft.  I've been talking to some of the factory folk at length lately, and everyone I've spoken with says they have more confidence in Mr. Chen and his business model than they have seen in years.  It will be fun to see how it plays out.

[rbridges]

In the USA, you are correct, but GA growth areas are China, Brazil, Russia....places that are big and don't have our transportation infrastructure.

 

 

and don't have our overweight pilots.  hard to squeeze into a mooney if you're not in reasonably good shape.

[DaV8or]

Yes, there is wealthy people in other countries. Why can't they use a mooney to fly from point a to b, just like we do?

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In the case of Russia and India, it's due to lack of infrastructure. There are very few airports and most, if not all are not public use. In the case of China, they have supposedly been on an airport building spree, but have actually yet to allow the general public to fly. Last I heard, all airports in China are run by the military. They have brand new runways and airports that are ghost towns. None of these countries have historically been keen on granting personal freedoms and individuals to operate outside of government control and I don't think they will ever allow people to fly like we do here in the states.

 

That could change in the future I suppose, but I kind of doubt it. In China's case, their new found love of the airplane seems to be born out of the idea of creating a national airline network and also the desire for a first class air force. To do this, they need a robust aviation industry and training facilities for thousands of new pilots. I really don't think they're building all those airports so rich guys can take their kids to the beach on the weekends. They're building them in the hope that one day their nation will dominate in aviation.

[mooniac15u]

One other thing to consider is that an auction like this is for cash buyers.  That's going to be a pretty limited group.  A "regular" Acclaim buyer is likely to finance the purchase for 20 years and probably has a trade-in.

[DaV8or]

One other thing to consider is that an auction like this is for cash buyers.  That's going to be a pretty limited group.  A "regular" Acclaim buyer is likely to finance the purchase for 20 years and probably has a trade-in.

 

I'm not so sure about that. I have to figure that once you reach the level of being able to buy a $700,000 toy for fun and recreation, you are likely to be well beyond the need to finance. If there is any debt, most likely it is borrowed privately and paid off in less than 5 years. Of course there is going to be some folks out there spending beyond their means and stretching to get a brand new plane, but I would guess they are the minority.

[mooniac15u]

You'd probably be surprised about what gets financed. High net worth is often tied up in other investments. Financing is as much about managing cash flow as purchasing beyond your means. I have enough assets to pay for my J but I still have it financed.

[Joe Zuffoletto]

A "regular" Acclaim buyer is likely to finance the purchase for 20 years and probably has a trade-in.

 

Certainly applies to this "regular" Acclaim buyer. With interest rates near all-time lows it's stupid to throw your cash at a depreciating asset.

[LANCECASPER]

On 7/10/2014 at 2:53 PM, Seth said:

The current bid is $586,000 and bidding closes tomorrow.  Just over 32 hours to go.

All proceeds will go to the Mooney Museum and you get the first brand new Acclaim.

Only registered bidders can continue to bid at this time - should be fun to watch (I am NOT bidding nor am a registered bidder).

http://www.mooney.com/first-to-fly-auction/

So it's been four years and no Mooney Museum. Where did the $600,000+ go that was raised for that?

[MBDiagMan]

I think Lance is posing a fair question.

[Stephen]

3 hours ago, LANCECASPER said:

So it's been four years and no Mooney Museum. Where did the $600,000+ go that was raised for that?

"General funds" on the ledger probably ate it. 

[INA201]

This is technically a used plane, like a demo car would be. I would suspect over 600k is a really good sale for Mooney.

[LANCECASPER]

1 hour ago, INA201 said:

This is technically a used plane, like a demo car would be. I would suspect over 600k is a really good sale for Mooney.

It sold at auction 4 years ago as a new plane.

[kortopates]

So it's been four years and no Mooney Museum. Where did the $600,000+ go that was raised for that?

Good question Lance. Since the museum was the idea of the past CEO Jerry Chen, I suspect the concept may have lost its sponsor.


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[Oldguy]

15 hours ago, kortopates said:

Good question Lance. Since the museum was the idea of the past CEO Jerry Chen, I suspect the concept may have lost its sponsor.
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Might be true, but I would consider it bad form by the company to auction something off at the figure it was and then change the distribution of the funds without any comment. Yes, it is the company's money now to do as they want, but inducing someone to pay a price for something by publicly stating the funds will be used for a museum and then the money disappearing into the general fund coffers might not sit well with everyone.

[gsxrpilot]

2 minutes ago, Oldguy said:

Might be true, but I would consider it bad form by the company to auction something off at the figure it was and then change the distribution of the funds without any comment. Yes, it is the company's money now to do as they want, but inducing someone to pay a price for something by publicly stating the funds will be used for a museum and then the money disappearing into the general fund coffers might not sit well with everyone.

It doesn't have to sit well with everyone... only the one guy who bought the plane. He probably doesn't care.

If they'd held an auction and sold off 1000 different items, much of it useless shit, but people purchase anyway to fund the museum, that's different. But this was only one item, sold to one person.

[Culver LFA]

On 7/30/2018 at 11:03 AM, LANCECASPER said:

So it's been four years and no Mooney Museum. Where did the $600,000+ go that was raised for that?

Maybe the issue was that the “Mooney Museum” name was already taken.

http://www.sarahamooneymuseum.org/

 

In reality, Mooneyspace is the Mooney museum.  Keeping them flying!

Edited July 31, 2018 by Culver LFA