Things to consider before making offer on M20J that has 2800 hours on the engine

[1980Mooney]

On 4/8/2023 at 3:02 PM, DHave said:

New pilot that is considering purchasing my first plane. Without giving too much information away, the plane I’m looking at has averaged 105 hrs/yr but is 800 hrs past TBO. Most recent compressions were all 72 or higher, so I would be curious to hear from the group what I might be overlooking if I pursued my interest in this particular plane. Thanks in advance.

 

17 hours ago, Tim-37419 said:

I looked at this plane pretty closely and live close. My spidey sense was on high alert after speaking to the broker. There are photos online of this plane rotting on a ramp. There are corrosion related repairs in the log book. Like the OP said, barely flown and it has also fallen out of annual multiple times. 

The paint looks beautiful but I passed.

it took me 6 months to find a good J model within my price range (which I went over btw), if this was a good deal it would have sold by now.

To the OP, you did the right thing by asking here for advice.

 

17 hours ago, RoundTwo said:

Just checked registration and it looks like it bounced around Stuart and Fort Pierce a good bit before moving to AL. I’m not certain, but I think this is the one Scott MacDonald had listed for quite awhile in Stuart, before it got the new paint. I remember looking at it back in ‘21 and decided to move on for better planes. 

 

11 hours ago, ArtVandelay said:

Yeah and I think it was priced somewhere around $175k. Super expensive considering engine hours.

 

10 hours ago, ArtVandelay said:

Full glass panel, new paint job….$100k would be a steal.

I know that I looked at this on Controller 2 days agon on April 10 - And I remember that it was priced at $175K

But they just dropped the price to $124,900 on both Controller and Scott MacDonald Aircraft Sales.

It says "Reduced for quick sale!"

Personally, I would get on it and give it a hard look.

Alternatively, perhaps this is a harbinger that the market for used GA aircraft is about to see the bottom drop out.  I think a lot of people are sitting on planes that are not moving.  And interest rates will be rising.

1978 MOONEY M20J 201 For Sale in Stuart, Florida | Controller.com

1978 MOONEY M20J 201 For Sale in Stuart, Florida | www.macdonaldaircraft.com

Edited April 13, 2023 by 1980Mooney

[carusoam]

Next Wednesday is Fed reserve day…

Interest rates are expected to be going higher until the layoffs have people feel uneasy about buying expensive things…

Prices going down on planes boats and houses is a good sign we are reaching that point…

CPI (consumer price index) data announced today was also going the right direction… continuing to slowly decrease…

But still a long way from the 2% target…

Inflation is still burning, just not as much…

PP thoughts only, not a finance guy…

Best regards,

-a-

[ArtVandelay]

For comparison there’s a 80 J with 1800 hours on the engine, steam gauges on controller for the same price, “also priced to sell”.

[1980Mooney]

7 hours ago, ArtVandelay said:

For comparison there’s a 80 J with 1800 hours on the engine, steam gauges on controller for the same price, “also priced to sell”.

Except there is not.  The only '80 J on Controller has 200 hours on engine and says "call for price". There is an '87 J with 1638 hours on the engine, steam gauges +GNS430, one pielce belly and speed brakes for $145K.  Not sure what you are referring to - maybe I missed it.

Also looked at Trade A Plane - The only '80 J is a Turo Bullet - 728 hours on the engine in 25 years.....

[DHave]

1 hour ago, 1980Mooney said:

Except there is not.  The only '80 J on Controller has 200 hours on engine and says "call for price". There is an '87 J with 1638 hours on the engine, steam gauges +GNS430, one pielce belly and speed brakes for $145K.  Not sure what you are referring to - maybe I missed it.

Also looked at Trade A Plane - The only '80 J is a Turo Bullet - 728 hours on the engine in 25 years.....

I got in touch with Jimmy Garrison yesterday, and he sent me his latest Mooney Pricing Guide which was incredibly helpful. It's a treasure trove of information, to say the least. Strongly recommend it for anyone in the market or considering being in the market.

[ArtVandelay]

Except there is not.  The only '80 J on Controller has 200 hours on engine and says "call for price". There is an '87 J with 1638 hours on the engine, steam gauges +GNS430, one pielce belly and speed brakes for $145K.  Not sure what you are referring to - maybe I missed it.
Also looked at Trade A Plane - The only '80 J is a Turo Bullet - 728 hours on the engine in 25 years.....

Typo, 82:

https://www.controller.com/listing/for-sale/220920919/1982-mooney-m20j-piston-single-aircraft

[1980Mooney]

15 hours ago, ArtVandelay said:

For comparison there’s a 80 J with 1800 hours on the engine, steam gauges on controller for the same price, “also priced to sell”.

 

2 hours ago, ArtVandelay said:

Typo, 82:
https://www.controller.com/listing/for-sale/220920919/1982-mooney-m20j-piston-single-aircraft

New upholstery and new windows/windscreen (1/4 in.)  Paint looks good.  Speed brakes and GAMI's.  Panel not glass but has 530W, Flightstream, 330ES, STEC55X - so not terrible.  Do you know what the price was before the price drop?

6 hours ago, DHave said:

I got in touch with Jimmy Garrison yesterday, and he sent me his latest Mooney Pricing Guide which was incredibly helpful. It's a treasure trove of information, to say the least. Strongly recommend it for anyone in the market or considering being in the market.

Prices are starting to drop - this is just anectodical but it looks to me like I am seeing the same planes listed that are not moving.  Keep in mind when using any backward looking price guide.

[ArtVandelay]

Prices are starting to drop - this is just anectodical but it looks to me like I am seeing the same planes listed that are not moving.  Keep in mind when using any backward looking price guide.

Don’t know the price of the 82.

When I started looking to buy a J I kept a list of planes for sale, their prices and when they sold. After a couple of months I could tell which ones would sell quickly and which ones were overpriced. That’s how you get to know what buyers are buying.
And buyers are afraid of buying a runout, I decided that’s what I wanted because there was less risk and found one priced correctly.

[A64Pilot]

On 4/13/2023 at 8:29 PM, 1980Mooney said:

 

Prices are starting to drop - this is just anectodical but it looks to me like I am seeing the same planes listed that are not moving.  Keep in mind when using any backward looking price guide.

They aren’t even close to bottom though I don’t think, but the dip has started.

So if your thinking about selling, do so now, if your a buyer and can wait, wait.

As s reference, look at the Recreational Vehicle market, lots are full, deep discounts and they still aren’t selling like they were a year ago

First Google hit, but I think airplanes are essentially similar to RV’s as both are luxuries, just airplanes lag behind, I guess because the market is so small.

https://www.rvtravel.com/preowned-rv-prices-continue-dive-heading-back-normal-territory-rvt-1081b/#:~:text=In October 2021%2C the average motorhome sold for %2481%2C384%3B towables,still a respectable 9.53% decrease.

 

[Pinecone]

Also GA fleet is getting smaller.   Not many being made, but still crashing them.