Factory Closure & Resale Market Value

[Reaver]

For anyone who has bought or sold a Mooney since the factory shut down a few weeks ago, how have you seen prices impacted? Have they dropped much, been largely unaffected, or there's just not enough data yet (I'm guessing the latter). If they've gone down, by about how much? Assuming the factory stays shut, how do you forecast the used market changing in the next several months?

I'm still catching up on the 25+ page main thread, and thought that this topic deserves it's own thread. Also a bit of self-interest in that I'm actively looking to buy a nice M20J right now, and would much rather the seller take a market-adjustment hit than me!

Edited November 28, 2019 by Reaver

[MikeOH]

The safe answer is, "not enough data yet."

IMHO, the shutdown is irrelevant to any but the newest Mooneys.  If you want to buy a "J," worrying about a short term market change due to the factory shutdown is a wasted effort.  Shop to find a good value...same as always.  You're not market timing an 'investment'

[Danb]

This isn’t anything new for the Mooney corporation and prior entities, a review of the past cycles didn’t appear to effect the market value over the long run. I purchased a 1988 201 new when they went to company sales, they offered for a while discounted or lowered the price of the product. My new 201 cost approx $110,000, the market value escalated in the next couple years. I purchased a six months old 2005 M while the company shuttered the doors. I believe the cost approximated $440,000, I sold my 17 year old 201 for $150,000. The market will dictate what we will be able to buy and sell for irrespective of the  company, hopefully they will continue to make parts and support the fleet. If so I don’t expect many issues. Point in 2005 a G1000 Bravo was in the mis $400’s while a 2019 Acclaim, there replacement approximates $800,000, about double in 13-14 years. 

[INA201]

Simple

Sellers ask a price.

Buyers will pay a certain price. 

When the two values and parties agree with each other a sale is made. 
 

There are a gazillion parameters that affect both the sellers motivation and the buyers motivation of which the factory closure is just one possible part of the equation. Some sellers(wouldn’t be me)and or buyers would be affected by the closure. For example, fuel prices, the economy, divorce, new promotion at work, insurance, mission, airframe condition, kids in college, health, spousal anxiousness to get you in a plane haha, buyer anxious to get a plane NOW, job transfer, retirement, age, fear, stepping up in an aircraft, stepping down in an aircraft, tired of same aircraft, factory closure, etc etc.

[carusoam]

Congrats on your first post, Reaver!

The answer to your question...

It depends...

Are you a buyer or a seller?

 

Prices depend on supply and demand...

The Factory was capable of over-supplying the market...

Since the factory has closed, they aren’t producing new planes anymore... or old ones either... 

So... supply has been removed from the market.

When you have been around long enough... you have seen waves of demand come and go with the economy...

The economy is quite strong... some Mooneys are trading hands in record times...

 

Let’s review the possibilities...

• No new Mooneys in production...
• Demand is up...
• Supply is down...

Buy a plane, because you want to fly it.... it is not usually an investment...

The cost to fly exceeds the cost of the plane itself...

Do it, because you want to... 

Go Mooney!

Best regards,

-a-

[Yetti]

Lot's of mooneys have been bought and sold during the time the factory was not open.  In 6 years of ownership I have bought exactly 1 factory part.   Common airplanes that use common parts.