Aircraft Purchase and Regionality

[AggieMike88]

We all are familiar with the variance of cost of living in different areas of our country. California and NYC have higher prices for goods than say Dallas for the same items.

Do you guys think the same applies to aircraft?

Got an email alert about a C182 posted on Controller that's based in Alaska. (http://www.controller.com/listingsdetail/detail.aspx?OHID=1240299)

I've been following that market for a little bit, and this price is in the higher range (middle is in the 70's 80's).

I was wondering if residing in Alaska would add some AMU's over it being in a southern state.

 

[alfadog]

I would think that AK might be a bit of a special case given the cost of transporting from the CONUS. Might be a bit better supply/demand situation favoring a seller than in the CONUS, also.

 

[Sac Arrow]

No I don't. People are willing to travel all over the country to get an airplane. When I look in the ads on ASO and other sites, the location doesn't seem to have a large bearing on price.

 

[Ted]

What Sac said.

Fuel will cost more, MX will cost more. The plane itself shouldn't cost any more.

You have to zoom out to see changes in cost. For instance, in Africa it is becoming popular to buy up aircraft in the US and ferry them over there because it ends up being cheaper by a good margin than buying a local aircraft.

 

[MBDiagMan]

No I don't. People are willing to travel all over the country to get an airplane. When I look in the ads on ASO and other sites, the location doesn't seem to have a large bearing on price.

This is what I was thinking. Unless it's somewhere other than the lower 48 I think the price won't vary much by location.

My $0.02,

 

[Tom-D]

I would think areas that aircraft are in high demand they would bring a better price.

knowing that you can spend a bunch o bucks finding and getting one home.

 

[FlySince9]

Some owners can be unrealistic when pricing their airplane. Ultimately anything is only worth what someone is willing to pay for it. Sometimes 6 months on the market is the only way to convince them the airplane may not be priced competitively...

 

[alfadog]

Ultimately anything is only worth what someone is willing to pay for it.

Wait, where did I just hear that? LOL

 

[FlySince9]

Wait, where did I just hear that? LOL

Its been my mantra, but someone very close to you recently affirmed my theory...

 

[wabower]

Like many other aviation-related discussions and certain types of underwear, the answer is “depends.”
Light piston airplane asking prices (and presumably selling prices as well) have traditionally been higher in California and New York/New England due to stronger demand and concentration of wealth. The 2008 market crash leveled the market to some degree, although prices for desirable airplanes continue to be slightly higher than for other parts of the country.
Many buyers employ similar patterns for car and airplane purchases, and are inclined to “go look at some airplanes” before making an offer, which effectively limits their search radius, although buyers seeking specific types are more prone to expand their search. For example, assume that a Texas-based buyer can purchase a local 172 for $55,000 with a pre-buy performed by his shop that will maintain the plane with no sales/use/property tax hassles. Alternatively, he can purchase a similar plane in California for $50,000 with at least a couple of trips, inspection at a less-known shop, ferry costs and numerous potential tax hassles. Which strategy results in the lowest laid-in cost for the plane?

 

[kyleb]

Like many other aviation-related discussions and certain types of underwear, the answer is “depends.”
Light piston airplane asking prices (and presumably selling prices as well) have traditionally been higher in California and New York/New England due to stronger demand and concentration of wealth.

Wayne, I agree with your general statement. But when I browse Bonanzas and equivalent aircraft on ASO or Controller, I'm always surprised at the number of *apparent* good deals on California aircraft. The aircraft may be corroded coastal money pits, but on the other hand, I wonder if the economy out there is still worse than the rest of the country and people are still trying to unload their toys.

Comments?

 

[wabower]

California was arguably the hardest-hit area by the 2008 triple-whammy (real-estate, credit market an stock market) hence the price-leveling mentioned in the previous post. I think your analysis of the market has merit. During our golf trip earlier this year I noticed that real estate prices were still severely depressed. This loss of wealth combined with revised lending policies has curtailed many aspects of consumer spending, and made airplane ownership uncomfortable or untenable for many.

Wayne, I agree with your general statement. But when I browse Bonanzas and equivalent aircraft on ASO or Controller, I'm always surprised at the number of *apparent* good deals on California aircraft. The aircraft may be corroded costal money pits, but on the other hand, I wonder if the economy out there is still worse than the rest of the country and people are still trying to unload their toys.

Comments?

 

[denverpilot]

California was arguably the hardest-hit area by the 2008 triple-whammy (real-estate, credit market an stock market) hence the price-leveling mentioned in the previous post. I think your analysis of the market has merit. During our golf trip earlier this year I noticed that real estate prices were still severely depressed. This loss of wealth combined with revised lending policies has curtailed many aspects of consumer spending, and made airplane ownership uncomfortable or untenable for many.

California, you think, or Florida?

 

[wabower]

Hard to say, I think it depends on the specific topic being discussed. CA population is ~2x FL, with high concentration of GA planes, so I'd go with CA on this particular issue. But both states clearly qualify as having taken it in the shorts.

California, you think, or Florida?