A partner and I are looking into buying a G6 SR20. The plane is a 2017 model with about 1000 hours on it (used by a flight school). We're both relatively new pilots and don't have tons of knowledge. Seeking some expertise from this group as to what standard(if that exists) depreciation is like on these planes. Two years later with 1000 hours, how much should have come off of the sticker price?
Is there some sort of depreciation formula out there for Cirrus or is it very subjective?
There are a lot better experts here than me. Hope one can jump on and correct me!
Though I think for an SR22 it's about -5% for each of the first two years (year 3 is -3%). Each hour takes off about $50 in value.
Take this all with a huge grain of salt... and that's with an SR22 that I bought a few years ago. I'm sure the market has changed.
I only have SR22T experience, but i’ll throw in my $.02. I bought a 2011 G3 turbo, loaded, and used with 48 hours on it, in 2012. I flew that one about 600+ hours and only lost about 85k from what I originally paid, over 3 years. In 2016 I bought a new loaded G5 22T, flew it about 250 hours, sold it a year later, and lost about 200k. I’m flying a turbine now and know that market fairly well, but haven’t checked the current Cirrus piston market lately. If there’s inventory I’d look for a late model with the lowest hours I could find. The best tip I could give you is to buy a 22 now if you see yourself moving up in the near future and eliminate a depression hit. Hope that helps.
I can say that I feel like if you had bought one new in 2002 and taken good care of it, you’d be smiling.
Ill confirm if I ever let her go. No money has been made, but I don’t think I’ve lost much either.
We are in the best market I have seen in my sales career.
Depreciation on a Cirrus especially an SR20 with flight school use is a difficult question.
Is it a JumpStart plane?
Hi everyone, thanks for the replies so far. Jamie, what exactly is a JumpStart plane? Please excuse my lack of knowledge on the subject.
Mine is not an SR20...but...The sweet spot for most planes is a hangared plane just out of the big depreciation curve. I bought my 2005 G2 Sr22 GTS in 2014 for $187K and 1400 Hobbs. After a 17K ‘chute’ repack, I’m told its market value with almost 2000 on the Hobbs (1600 or so Tach) is around $200K. Not bad...500 hours of flying, little or no depreciation, and the parachute has almost paid for itself.
Even if I only fly another 400 hours or so and get to 2000 Tach (TBO), this plane is really economical (for a Cirrus). But I intend...like many...to go as far beyond TBO as I can.
Here she is today, original paint, going strong.
To answer the OP question, here is what a jumpstart plane is:
apparently these were pre-configured planes at lower prices meant to allow flight schools to purchase. Not sure if the plane you are looking at is a jump start or not.
Got it, I don't think it is. Thanks for the clarification though!
A jumpstart airplane was pretty well configured. 12 inch screens, air conditioning, active traffic. But cirrus offered some guaranteed minimum rental revenue the first six months to get your part 135 operation going.
According to VREF values: a new 2017 SR 20 was listed around $435,000 but could be more depending on options. With 1000 hours on it, VREF is listing the plane value around $380K + options.
Feel free to call if you would like to discuss. I am happy to help.
There are a lot of variables.
My cell is below. Thanks!
Clear Star Aviation has a 2016 SR20 with 525 hours purchased in October 2016, 5-year warranty, air-conditioning, custom graphics, etc. for $399,000. Call John Ferguson at 214-697-7111.
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