Resale Value of Airplane Upgrades

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Nate G

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Nate G
Hi All,

Curious to see how much upgrades add to the value of an airplane. If you were a prospective aircraft buyer, how much higher would you appraise a small single installed with new dual G5s with GAD 13 and GFC 500 2-axis autopilot? Got 2 shop quotes, one for $27K and one for $30K. In regards to paint, searches seem to suggest that most buyers would not consider the full value of a paint job in the price of the airplane.

Thanks.
 
Typical valuation seems to be 50% of the street installed cost. For example, a 3 axis GFC-500 goes around 15k (at least when I last looked) so you can expect about a 7500 increase in value. As time goes by, the valuation goes down though. For example, a 430W carried a premium, but now that it has been superseded its installed value is not so good. That said, like any other custom item, you can overdo it or under do it and extremes pay a further penalty.
 
I know if you try to finance avionics upgrades with your purchase, they will only lend 50% of the quote.
 
I don’t know how much of your money you get back selling a plane you’ve upgraded, because I keep falling in love with the upgrades and never selling the plane. I think that airframe and powerplant value always fluctuate and drive the sale price more than avionics and other upgrades ever will.

My advice: Don’t upgrade for the resale value. Upgrade for the personal benefit. The upgrades will probably lead to a faster sale regardless of price. Someone here posted an analogy to a dishwasher. A guy can save some money washing dishes by hand for years, but if he wants to sell the house it will go a lot faster with a dishwasher installed. If you’re going to spend the money anyhow, wouldn’t you rather have the dishwasher all along?

The key is picking upgrades that you want and will use, with some consideration given to the marketability of the plane later on. Don’t get those priorities upside-down.
 
You’ll never get the full value. How much depends on the base cost of the plane. For example a $50k upgrade to a Cessna 152 may only increase the price $10k-$15k, whereas a 210 it will add $40k.
 
Not an expert by a long shot - but I kinda think of avionics like the plane - I'm buying used equipment. Maybe if they were installed very recently, as a way to get the plane sold, I'd value them higher? I'm always shopping - lot of airplanes with older avionics (and older engines) but sellers tend to NOT discount them very much. The ones with OK avioincs get a little bit of a premium, but nothing like what new boxes would cost. I've heard common wisdom (here) is buy a used plane with the avionics you want/need already in it.
 
It also depends on the upgrade. Replacing all your nav, strobe, and lights with LED might cost you $3-4k but you'll see 0 of it at resale. Upgraded an old Nav/Com to something newer? Yeah, most people expect you to have that. Add a new GTN750xi? Now you're talking...
 
I don’t agree with the flat 50%. It totally depends on the changes made. Put a gps and an autopilot into a plane with neither and it’d probably be worth close to 100%. Replace a vacuum system with g5s in a panel that already has a gps and autopilot, maybe 50%
 
wheaties said:
It also depends on the upgrade. Replacing all your nav, strobe, and lights with LED might cost you $3-4k but you'll see 0 of it at resale. Upgraded an old Nav/Com to something newer? Yeah, most people expect you to have that. Add a new GTN750xi? Now you're talking...
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It’s hard to quantify certain upgrades: but if you’ve had LEDs, you’ll definitely appreciate them and all things being equal will buy the plane that has them. A broker provided me a pricing checklist he uses and LEDs were a value add, maybe 1-2k.
Paint jobs are another upgrade hard to quantify, I remember one plane that was painted in Alabama red with roll tide on the side. That new paint job definitely didn’t add to the price of the plane, actually might have subtracted from it if you’re from another SEC university. You think hot pink is cool, but consider what future buyers will think. Ditto for interior, pick generally acceptable colors and styles (like no cord seams).
 
Right now is not a "typical" market...

Normally, 50% is about right when recouping recent upgrades...1-2 years ago (during the late-covid spending spree) it was pretty much 100% added on to the sale price for upgrades...

But now? Its heading back towards 50%, but probably hasn't quite got there.
 
Sometimes the upgrades allow you to sell. The Comanche didn't move even though it was a below deal because no autopilot. Evidently people don't actually *like* to fly.
 
EdFred said:
Sometimes the upgrades allow you to sell. The Comanche didn't move even though it was a below deal because no autopilot. Evidently people don't actually *like* to fly.
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Complex airplanes that have historically not been used as trainers can be considered cross country machines. The amount of labor to hand fly for 7 hours vs at least a single axis autopilot is ...not fun.
 
A chunk of my career was pricing and pricing policy for large tach companies.

Sometimes markets make strategic shifts and the old formulas are no longer directly applicable. In the past 5 years one of these shifts has occurred the in small GA market for both avionics and overall plane value. The rules are changing, and the general marketplace is establishing the shift.

Like the classic car market, vehicles shift from the "used market" category to a classic category which involves more nuanced factors to establish a market accepted resale value.

Avionics has shifted too. The old notion of Avionics are worth 50% of new doesn't quite work. If someone bought a GTN-650 7 years ago for $10K, that unit sells for $8-9K today even thought the 650Xi has superseded it at $13,600. NOBODY is selling GTN-650's for $5K.
 
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Datadriver said:
Complex airplanes that have historically not been used as trainers can be considered cross country machines. The amount of labor to hand fly for 7 hours vs at least a single axis autopilot is ...not fun.
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Speak for yourself. Over 1000 (maybe 1200 XC) in SEL, and all hand flown to all the lower 48. If I wanted someone else to fly, I'd have saved money and paid the airlines to take me there. If it's not fun, you're doing it wrong.
 
Turn the table for a minute... If you are in the market to buy an aircraft what is the most important items to you?

When doing a pre-buy, the most important item on the chosen model of aircraft is the Engine. The manufacturer says 12 years is TBO. If an engine has not flown a significant amount in 12 years the overall condition is in question and the sale will be pending the engine condition. Aircraft don't sale for much at all if the camshaft is corroded.

The better condition of the whole aircraft will value it much more then the options. Appearance is a very difficult topic. :eek:
 
EdFred said:
Speak for yourself. Over 1000 (maybe 1200 XC) in SEL, and all hand flown to all the lower 48. If I wanted someone else to fly, I'd have saved money and paid the airlines to take me there. If it's not fun, you're doing it wrong.
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Fortunately, I don’t have to agree with you on what I think is fun, nor vice versa.
 
The rule of thumb I heard, was that you get 50% (-ish) of the upgrade cost back when you sell the plane. I've also heard it said that you can recoup the cost of the avionics, but not the labor.

In reality, it's more complex than that and there is no hard and fast rule that you can actually count on when you are thinking about whether an upgrade is worth it. It's very much impacted by timing, the level of upgrade and how well you shop around for the best combination of good quality and price.

I've been very fortunate, I bought my plane in 2016 and it has appreciated quite a bit since then. The upgrades I've done are major. New Interior, New Engine, New Prop, New Panel, Air Conditioning and more. I am actually pretty certain that I could sell my plane and recoup 100% of the cost of purchase and the upgrades. Having said that - I don't see myself selling this plane any time in the foreseeable future. I upgraded it to fly it, not to sell it!
 
Iamtheari said it well. IF this is a plane you're flying for a while, then put what you want into for you. As long as you don't do something stupid (like paint the plane pink) you'll not be degrading the value, but who knows what added value a potential buyer would see.

murphey said:
True but 2 reasonably identical airplanes, one with the upgrades, will be more attractive to buyers.
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Your dream panel could be someone else's "I wonder how much to rip all of this out and put in a a real panel". G5's to you may sound great, but could have little value to another as he/she wants a G275. Someone puts in an Aspen what not and potential buyer sees that as a negative.
 
50% return is probably a reasonable expectation if the upgrades are still supported at the time of sale. However, no one should make upgrades to an aircraft with the expectation that it will be an investment. With upgrades also often come increased maintenance costs, and those become more onerous as equipment ages, turning a positive into a negative at resale. I make upgrades that make sense for operability and safety for me, not a future buyer. I don't really care if I get my money back some day.
 
GA is transitioning to glass. Buying a steam gauge single now means that at some point the plane will be down for an extended period of time for an expensive upgrade to glass.

Yeah, I got my private in a basic 172M with a small-screen gps, dial comms and no A/P. Great for training, not at all what I'd want as an owner.

Muh bush plane has IFR Dynon Skyview with A/P. If I want steam gauges, there's a setting to see them. It doesn't get used.

The intangibles of having a modern instrument suite is worth it to the buyer that doesn't have to suffer with the upgrade process. Maybe not 100% of the installed price but certainly more than 50%. Avoiding the months of downtime and managing shops definitely adds value.

You might fence out value buyers, but you'll attract serious buyers looking for the best-equipped plane of that type. Its probably also easier to finance a plane with glass than to upgrade one piecemeal along the way.
 
WDD said:
As long as you don't do something stupid (like paint the plane pink)
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Yes, someone really did this.
14403.jpg


https://generalaviationnews.com/2011/09/22/in-the-pink-judy-betzs-one-of-a-kind-rv-12/
 
I wouldn’t pay any extra for the G5’s as they don’t really add anything other than eye candy. Autopilot adds value to me, how much is hard to say. Depends on how common they are in the planes I’m looking at. Certainly not full price of the autopilot and instal otherwise I’d do it my self and have a brand new one with support from my local avionics shop. Maybe 75% if it’s a nice newer model, less if it’s an older one.
 
Grum.Man said:
I wouldn’t pay any extra for the G5’s as they don’t really add anything other than eye candy.
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Not necessarily true, the old mechanical HSIs are becoming unrepairable as parts aren’t available anymore. So a panel full of old avionics could nickel and dime you in repairs and forced upgrades…it’s pay now or pay later.

BTW, all you old folks who romanticize about steam gauges and no autopilots are dying out, future owners will want eye candy (full glass and modern digital autopilot) especially in higher value models ($100,000 or more).
 
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Grum.Man said:
I wouldn’t pay any extra for the G5’s as they don’t really add anything other than eye candy. Autopilot adds value to me, how much is hard to say. Depends on how common they are in the planes I’m looking at. Certainly not full price of the autopilot and instal otherwise I’d do it my self and have a brand new one with support from my local avionics shop. Maybe 75% if it’s a nice newer model, less if it’s an older one.
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MooneyDriver78 said:
Not necessarily true, the old mechanical HSIs are becoming unrepairable as parts aren’t available anymore. So a panel full of old avionics could nickel and dime you in repairs and forced upgrades…it’s pay now or pay later.

BTW, all you old folks who romanticize about steam gauges and no autopilots are dying out, future owners will want eye candy (full glass and modern digital autopilot) especially in higher value models ($100,000 or more).
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But there are guys like me, that WOULD love to rip out the G5s and put in steam gauges...I can't stand the glass crap...yet I have it now. Sigh.
 
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masloki said:
Typical valuation seems to be 50% of the street installed cost. For example, a 3 axis GFC-500 goes around 15k (at least when I last looked) so you can expect about a 7500 increase in value. As time goes by, the valuation goes down though. For example, a 430W carried a premium, but now that it has been superseded its installed value is not so good. That said, like any other custom item, you can overdo it or under do it and extremes pay a further penalty.
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I've seen that number used as well.
 
MooneyDriver78 said:
Not necessarily true, the old mechanical HSIs are becoming unrepairable as parts aren’t available anymore. So a panel full of old avionics could nickel and dime you in repairs and forced upgrades…it’s pay now or pay later.

BTW, all you old folks who romanticize about steam gauges and no autopilots are dying out, future owners will want eye candy (full glass and modern digital autopilot) especially in higher value models ($100,000 or more).
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I'm 39, hopefully that doesn't make me an old folk. I've been flying for 15 years and never had an instrument failure. If I did have one fail yes I would probably replace it with a G5 and AV what ever as they are cheaper especially for experimental airplanes. I wouldn't expect it to increase the value of the plane at all as I just replaced one expensive gauge for another and didn't really gain any functionality. There fore I stand by my statement that having a G5 in place of a steam gauge adds no value to the plane.
 
Grum.Man said:
I'm 39, hopefully that doesn't make me an old folk. I've been flying for 15 years and never had an instrument failure. If I did have one fail yes I would probably replace it with a G5 and AV what ever as they are cheaper especially for experimental airplanes.
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You’ve never had the AI fail, even due a broken vacuum pump?

I’ve been flying for 10 and have had both HSI and AI fail on their own, not to mention the vacuum pump.
 
MooneyDriver78 said:
You’ve never had the AI fail, even due a broken vacuum pump?

I’ve been flying for 10 and have had both HSI and AI fail on their own, not to mention the vacuum pump.
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Nope. I've bought airplanes that they were bad from the get go from sitting but never had one fail during operation or ownership. On the other hand, I've seen lots of G5 failures so maybe there should be a price reduction for a G5 over a gyro. lol
 
So how long does a plane sit for sale before you figure out the avionics upgrade are not worth what you thought they were worth. I have seen planes for sale for over a year, just how long should a plane priced at a fair value take to sell.
 
NordicDave said:
Avionics has shifted too. The old notion of Avionics are worth 50% of new doesn't quite work. If someone bought a GTN-650 7 years ago for $10K, that unit sells for $8-9K today even thought the 650Xi has superseded it at $13,600. NOBODY is selling GTN-650's for $5K.
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No one said that you can buy a used piece of avionics for 50% of the new cost. They have said, avionics installed in the airplane raises the value by about 50% of the cost of the avionics plus installation. And since, the installation these days is about 80% of the cost of the avionics, the increased value is about the cost of the box, and the installation is a sunk cost.
 
brien23 said:
So how long does a plane sit for sale before you figure out the avionics upgrade are not worth what you thought they were worth. I have seen planes for sale for over a year, just how long should a plane priced at a fair value take to sell.
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LOTS of factors. How desirable is the plane? Some models sell in days. Some take longer. There are other factors also. An oddball paint scheme may make it be on the market longer to find the ONE other people that likes it. :D

My airplane was on the market for 1 day before I made an offer. It was accepted 2 days later. Timing was perfect for the seller, as I had a deal fall through on Sunday, the ad went up on Monday.
 
Grum.Man said:
I wouldn’t pay any extra for the G5’s as they don’t really add anything other than eye candy. Autopilot adds value to me, how much is hard to say. Depends on how common they are in the planes I’m looking at. Certainly not full price of the autopilot and instal otherwise I’d do it my self and have a brand new one with support from my local avionics shop. Maybe 75% if it’s a nice newer model, less if it’s an older one.
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2x G5, moving map GPS, and a 2 axis coupled autopilot makes the aircraft TAA. :D
 
MooneyDriver78 said:
Not necessarily true, the old mechanical HSIs are becoming unrepairable as parts aren’t available anymore. So a panel full of old avionics could nickel and dime you in repairs and forced upgrades…it’s pay now or pay later.
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That maybe what you would do, but again it’s not what you or I value but what a buyer wants. While we all would mostly agree on what a good engine vs bad engine is, I offer that is not so with avionics.
 
Grum.Man said:
I wouldn’t pay any extra for the G5’s as they don’t really add anything other than eye candy. Autopilot adds value to me, how much is hard to say. Depends on how common they are in the planes I’m looking at. Certainly not full price of the autopilot and instal otherwise I’d do it my self and have a brand new one with support from my local avionics shop. Maybe 75% if it’s a nice newer model, less if it’s an older one.
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Maybe for a VFR pilot, dual G5s would be of marginal value. However, for an IFR pilot, dual G5s are a significant upgrade in terms of simplifying and consolidating scan. In addition, dual G5s also add GPSS roll steering with many legacy autopilots in a GPS-equipped airplane, a significant operational feature. (I suspect most owners installing dual G5s already have WAAS GPS and at least a one axis autopilot in order to take advantage these features.) Finally, dual G5s allow the removal of the vacuum system, a common failure point. I will also add that for night flight, electronic instruments are infinitely easier to read than internally lighted or post-lighted legacy instruments. This is lots more than eye candy. I'd never go back to legacy instruments, given any choice at all.
 
Grum.Man said:
I've been flying for 15 years and never had an instrument failure.
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Consider yourself very lucky. I've had numerous vacuum pump failures, at least 3 AI failures (that I remember) and several DG imminent failures (heralded by increasingly excessive precession) in 35 years of flying. New or refurbished, it doesn't seem to matter much. They are mechanical devices, and they have an expected MTBF. It's very much no fun it if happens in IMC. Fortunately, almost all of these were in VFR conditions, but resulted in significant down time. Interestingly, I've not experienced a T&B failure (electric instrument).
 
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