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You’ll be
interested in the exchange I had today with somebody’s tax collector. Please read the messages from bottom to
top. Then you can bash me all you
like – I’m suffering from doubt that I should have answered her at all.
I’d
appreciate supplemental ideas I should send her.
Ed
Burkhead
http://edburkhead.com/
ed -at- edburkheadQQQ.com (change -at- and remove the
QQQ)
-----Original Message-----
From: Crook, Judy
[mailto:[EMAIL PROTECTED]
Sent: Friday, June 18, 2004 1:46
PM
To: [EMAIL PROTECTED]
Subject: RE: Alon A2
Thanks for your help. Enjoy your
hobby and have a great weekend.
Judy
From: Ed Burkhead [mailto:[EMAIL PROTECTED]
Sent: Friday, June 18, 2004 2:01
PM
To: Crook, Judy
Subject: RE: Alon A2
Judy,
Here are factor that have to be
taken into account:
1. Hours of engine use since major
overhaul (SMOH). Maximum possible is about 1800 but value goes down
rapidly after about 350 SMOH. By 700 SMOH, the engine may be due for a
$12,000 overhaul leaving the overall value of the aircraft pretty low.
2. Avionics can be a value adder but
for example, if I added a $2,000 radio today, and was selling the plane
tomorrow, I’d expect only a $1,000 increase in value. A couple of years
from now, I’d expect only a few hundred dollars added value from that item.
3. Corrosion – if there’s corrosion
in a wing, subtract $3,000 immediately. If there’s corrosion in the
center section, subtract $5,000-$7,000 because that’s what it’ll cost to
repair. This is ONLY a detractor – it’s expected to be corrosion free.
4. Mechanical condition of airframe
(that’s everything except the engine and instruments/avionics). Safety of
the airframe is key. There are lots of possible minuses – rigging of
controls, hinges, connectors and corrosion (as mentioned in 3).
5. Cosmetic condition. If
prize-winning quality, could add a several thousand. If it’s flaky (i.e.
flaking or bad paint or ugly paint, bad upholstery, etc.) it could detract
$1,000-$10,000. Looking it over, any cosmetic faults can be a big
detractor to a potential buyer who wants to be proud of his/her plane.
For example, minor faults in an interior side panel can cost $300 to repair so
the buyer has to choose between fixing it and putting up with it forever.
6. There are a lot of little
things that affect value. Which brakes it has, which nose fork, which
instruments and radios (more is not better to many people since weight is
critical), which engine, which prop, the design of the paint and interior choices
and (importantly) whether it’s been hangared or tied down outside.
Overall, in recent years, I’ve seen
Alon A2s sell for $10k-$25k, depending on everything above and also on the
market at the time. The asking price in ads is rarely met. A lot of
ads (?most?) are overpriced and the buyers negotiate or pass it buy. When
I sold my plane a couple of years ago, I took $3k less than I had asked and
sold it for $10k.
It’s possible for a plane to
approach zero value. For example, a plane with a high-time engine, bad
paint and interior, and corrosion may be sold for parts because it’s not worth
the cost of refurbishing it.
A lot of owners (most) are NOT rich
people. There are more poor people who are desperate to fly who strain
their budget and give up a lot to keep their plane. I’m in that
category. I worked a part-time second job for years to just barely be
able to support airplane ownership. I’m afraid that taxing bodies have
sometimes succumbed to the illusion that airplanes are toys of the rich and you
can tax the owners as high as you want. A lot of us are on the edge where
an additional burden pushes us over the cliff.
Actually, I suspect the books are
probably pretty accurate IF they’re significantly below the advertised
price. If you have records of actual selling prices, you may get some
useful baseline IF you take all the factors above into account.
Ed Burkhead
http://edburkhead.com/
ed -at- edburkheadQQQ.com
(change -at- and remove the QQQ)
-----Original Message-----
From: Crook, Judy
[mailto:[EMAIL PROTECTED]
Sent: Friday, June 18, 2004 12:19
PM
To: [EMAIL PROTECTED]
Subject: RE: Alon A2
Tax Assessor. We found valued from
NADA and PrimeMedia Aircraft books but they were really low compared to the prices
that we are finding these planes are being sold for. I appreciate you
reply.
J Crook
From: Ed Burkhead [mailto:[EMAIL PROTECTED]
Sent: Friday, June 18, 2004 12:02
PM
To: Crook, Judy
Subject: RE: Alon A2
J Crook
Please tell me about yourself.
Are you the owner or the tax collector?
(You’ll get similar answers but the
resources I recommend will be different.)
Ed Burkhead
http://edburkhead.com/
ed -at- edburkheadQQQ.com
(change -at- and remove the QQQ)
-----Original Message-----
From: Crook, Judy
[mailto:[EMAIL PROTECTED]
Sent: Friday, June 18, 2004 8:53
AM
To: [EMAIL PROTECTED]
Subject: Alon A2
I found your website and hope you might
be able to help me. I have to assess a 1965 Alon A-2 for local
taxes. I have not been able to find a pricing guide that has a
value. Can you help?
Thanks,
J Crook
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