2 Responses to “Q: how will Cessana's Production affect current prices ???”

1. admin says:

   March 10 at 6:55 am

   Tim Moore wrote:
   > >  I know that the prices will drop somewhat, but will the price drop
   > > dramatically for an used one ?????

   > Why do you think the used price will drop. I don’t.

   The pool of potential buyers is finite.  Anyone interested in buying an
   aircraft in this class has had very few options in recent years.  Many
   people who would have bought new had few choices, and so (i) either bought
   a used aircraft of (ii) bought a more expensive, higher-performance aircraft
   (since many of these were still being produced).  Now that production has
   been resumed, some of these people will turn to the new market, so demand
   for used aircraft will fall.  The question is by how much, not if.  And
   distinguishing this effect from other things like inflation, changes in
   equipment standards, and the increasing age of the used aircraft pool.

   Stefano
2. admin says:

   March 10 at 6:55 am

   In article <31C474E1.7…@worldbank.org>,
   Stefano Pagiola  <spagi…@worldbank.org> wrote:

   >The pool of potential buyers is finite.  Anyone interested in buying an
   >aircraft in this class has had very few options in recent years.  Many
   >people who would have bought new had few choices, and so (i) either bought
   >a used aircraft of (ii) bought a more expensive, higher-performance aircraft
   >(since many of these were still being produced).  Now that production has
   >been resumed, some of these people will turn to the new market, so demand
   >for used aircraft will fall.  The question is by how much, not if.

   I disagree. The pool of potential buyers for used Cessnas consists of
   anyone who can’t afford something better. Someone who today can afford
   to spend $140k for an aircraft isn’t shopping for used 172s; they’re
   shopping for used Commanders or Beechs. The entry of new 172s to the
   market may affect the sales of used Beechcraft, but it’s not going to
   effect the price of an older Skyhawk.

   The question is still "if" and, in my opinion, the answer is "no".

   ———————————————————————–
                       |
   George Patterson –  | A bud in the hand is worth two in the busch.
                       |
   ———————————————————————–