ROI doesn't favor anything. It simply measures results.
If no one desires your product, your ROI is reduced. ROI is just a measurement, its up to you to figure out how to improve it on what basis it is reflected and measured with.
And if you paid less for the junker, then what?
Try it out, do some market research. Every company does it. Compare your revenue for a Junker vs a competitively priced pleasure aircraft in good condition. Then also research he same thing in multiple markets.
How does that equate to price elasticity of demand?
If an industry appears in shambles to outside observers, demand reduces. If the availability of quality/clean aircraft is pathetic, measuring demand, necessity, duration and all are moot.
Sadly, I think the buy-leaseback type program all to familiar with aviation isn't driven on a measuring this.. Why would a lease back owner operator want to put MORE money into something they're trying to stop bleeding money? They don't see their aircraft as an investment and thus, they're not investing in it. Which isn't really good for the market.
Clubs on the other hand, seem to reflect a stronger quality and are thusly apparently growing. At times not even being cheaper than renting.. which begs the question, are rental FBO's just giving up?
BTW, how did aviation become so tied to owner lease back options vs say capital market lease options? Too much risk?