m20m m20m pre-purchase advice please

[Danb]

I agree and hope your correct.

[smccray]

On 9/17/2016 at 11:50 PM, carusoam said:

Sorry guys, I must have quoted the Ovation annual by accident.  No TC on the 310HP IO550...

The focus of my post was intended to be costs of flying in general vs investment value of the plane itself.

A Bravo listed here is 229AMU...

http://www.controller.com/listings/aircraft/for-sale/list/?pcid=17527&dlr=1

The fuel cost is going to be much larger than the annual's cost.

I'm afraid to go much further, I'm no finance guy.  My favorite accountant is flying a Bravo.

I would go out on limb, but generally speaking there has been little inflation in the past eight years,  and little depreciation on Long body prices.

The wise man above said, it would require a crystal ball to give a better vision on how prices will be affected.

An economist would relate price flexibility to interest rates. Low interest rates pressure prices to increase, because a buyer has to pay for the plane and interest.  If you pay the bank more, you can only afford a lower price.  If everyone is stuck with a lower price, the price of all planes in that category are pressured downwards.

The opposite is also true.  The economy is expanding, unemployment is decreasing.  Fuel cost is half of what it was ten years ago.  Consumer sentiment is on the rise.  People are buying airplane's around here (including a Bravo that was sold a few months ago...)

Can the environment get much better than that?

Most Mooney owners are in the buy and hold camp. The costs of the transaction are high.  The pain of getting everything updated and adjusted the way you like takes time. Getting comfortable with it in IMC isn't getting better the more often you do it.

In the end you know the Mooney can last 50+ years.  My first Mooney was built in 1965.  It is still flying around.  An airworthy 65C is worth about three times more today, than it was brand new.  Today it has better valves, newer donuts, digital radios, and color touch screens...

Sorry, why were we talking about depreciation?

Depreciation is serious if you are buying brand new, and intend to sell in a few years.

If you are in the buy and hold camp, you are going to spend far more operating the plane than the depreciation of the asset.

 

Don't lose sight of the non-Mooney depreciation that begins every decade or so in the instrument panel.  Make sure you have a complete set of WAAS navigators.  The non-W navigators can be expensive to replace.

If you use it a lot there is the cost to overhaul the engine.  Wearing things out has been more expensive than depreciation.

Of course, the future can't be seen from here.  This is only the experience of a PP, not a financial expert.  Consulting one of those guys would be a good idea...!

I enjoy the financial discussion much more than the AOA discussion.  You can get one of those too for about 2amu...

Best regards,

-a-

On the M20M I don't think the issue is depreciation as much as declining value. There's no question that the Bravonis a very capable airplane- the problem is that at the prices advertised on controller are pretty crazy. There are a couple airplanes that have been on the market for over a year- only one reason why you can't sell a well advertised airplane in 90 days.