Eagle Value

[Greg Squires]

I am having a hard time understanding how our Eagles are valued.I was talking with Aviat the other day and was told a new kit is worth $175,000.00. I had to ask twice .So why do our Eagles sit between $50,000.00 and $75,000.00.

It doesn't make any sense to me .Comments appreciated.

Regards,

Greg

( gotta say I'm not really impressed with Aviats service.)

Sent from my iPad

[RONALD T HARMON]

Greg,

I've done Appraisal work for nearly Thirty years on both M & E as well as
Business valuations.
When I first thought I had misunderstood Aviat the kit price was $165,00.00.
I agree with you in that even from a basic valuation approach nothing about
the numbers seem to make sense.
When I first noticed such a drastic difference my first thought was to buy a
few extra flying Eagles and just keep them for investments if nothing else.
There is a flaw in the numbers in my opinion. The flaw is the selling price
that is obviously and grossly inflated by any reasonable cost standard.
One of my jokes used to be " If you don't want anyone to buy a kit, just say
so". Well, it's a poor joke but maybe more truth than one might think.
I'm afraid someone's ultimate motive in setting the pricing so high was
either flawed or with other motives. Obviously they are selling fewer kits,
providing fewer jobs, and loosing market share in an area of aviation in
which there are more and more aerobatic/sport airplanes.
From a business standpoint the Eagle, as much as we may all love it, may
just not be all that good a product. Especially when they have a Standard
Category option.
Unless there is a kit price reversal in the future, with renewed support, I
have to believe The Eagle will eventually fall into a place with a lot of
other great aircraft.
For stable values there must always be a willing buyer and a willing seller.
Our economy along with other aircraft choices available affecting the
willing buyer's side of the equation and Aviat affecting the willing
seller's side of the equation, not much good is likely to happen for those
of us that still love our little feathered biplane.
If the buying demand does eventually fall off, for what ever reasons, we may
not be able to assume we can sell them as quickly as we once did.
But then again this comes from a guy who owns a Micco.
That all said, I still catch myself considering buying a second Eagle every
once in a while. I guess it all boils down to how many of us are there and
how much do we want them.
I'm 68 and fly 31C several times a week and honestly, I'm offended by
Aviat's behavior when it comes to the Eagle. I'm sure that's going to keep
them up at night.
All I started out to say was that I agree with you.

Ron
KAEG

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[Paul]

Agreed.  Won't buy anything from them unless I have to.  Few years ago at SnF I saw Bill Finagin standing around at the Aviat display.  I walked up and introduced myself as an Eagle owner - the only thing he would say to me is "buy a Pitts".  Haha yea that's funny...continued trying to talk to him, he stood there with his arms folded, waited until I was done talking, said "buy a Pitts" again, and walked off.  I suppose I should have chased him down and "bought a Pitts" just for the privilege....

[Ron-Debbie Harmon]

Greg,

 

You are absolutely correct by every accepted Method of Valuation.

I’ve done Appraisal work for years and voiced similar comments a few years ago.

 

Whether or not this was part of a planned strategy by the kit mfr., I really doubt that it was, to ultimately affect or stabilize values, it would be very risky in the long run.

I just think they really don’t care if they sell them or not. But they are sure going to get their price if they do.

With all of our local Eclipse Jet history here in ABQ., we have learned the hardship of too many outside contractors for parts and components.

I guess that could be a consideration here too.

 

I have had several potential  Eagle builders ask an opinion on total price for building an Eagle today and can’t see a way to do it properly for less than $225,000.00 and probably more.

And that’s if your time is worth nothing.

 

Even though I’ve finally got 31C where I really want it I have considered selling it from time to time. It would be really  hard for me to value it properly.

The day of $ 50,000.00-$60,000.00 Eagles has to be on the verge extinction. Hell, maybe the Eagle is on the verge.  I don’t think I would take less than $ 100,000.00 for mine and it’s a 1988 and that would be if it was for sale and it’s not. I actually considered buying a second used Eagle last year just for these reasons.

 

It’s hard to think that now might be the time to build a new one. That would be a extremely Long Term play though for someone my age.

An F1 Evo Rocker will probably be my second plane this year.

 

OR, maybe  just begged them to take your money. Not likely.

 

A really weird situation.

 

Ron

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[Dave von Linsowe]

IMHO, it boils down to performance and use.  Other than the SLA market, performance effects the price.

Compare the Eagle to a S-2B.  Big difference in performance, especially with two people on board.  The B has got better ailerons.  As for use, the B can be used for income generating training.  B's are going for $70-$90K.

As for the price of the kit, if it were in high demand the kit price would have an effect on the market value.  For many of the Eagles out there the kit price was less than $30K, about $40K with the engine and prop...

Many homebuilts are a great bargain because the flying airplane cost less than the parts that are in it, including RV's...  Award winning quality is the exception along with new high demand models.

Regards,

Dave

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[John Penfold]

I.e the manual that deals with flying techniques, spinning etc.

God knows where mine went, but I can’t find it.

Is it out there on the net anywhere, does anyone know?

John Penfold

G-EGAL

[Lynn Ojala]

John, The AFM can also be purchased from Aviat. Not sure of the cost but it is pretty reasonable, I have a friend who just ordered one. The number for the factory is 307-886-3151. 

Lynn O.   N13LD

Sent from Lynn's iPad 

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