"St Louis Flying Club Newsletter"

St. Louis Flying Club Newsletter - 31 July 2007

From The President - By Todd Michal

Dear Members,

Thanks for the quick response on the engine monitor purchase. John was able to purchase it at Oshkosh for $1550 which reflects the $300 airshow discount. John also picked up the Rieff engine heater that was authorized at the annual meeting in January. Based on everyones input, we will run a negative balance in the improvement fund until the monthly inputs to the fund balance it out.

With the new paint and other upgrades, we had two appraisals done on the plane. We were hoping that the value would increase over the last assessment done in May 2006 but the overall market for used aircraft has gone down considerably in that time. Look at the two appraisals below and let me know your input on setting the current value of the plane.

Happy Takeoffs!

Todd

Treasurer's Report - by Mike McBride

The adjusted treasury remains strong this month at over $5,500, reflecting the paint assessment; those funds, along with the $1,100 in the Improvement Fund, should cover the repainting charges without the need for additional assessments. Once the charges for the engine heater and engine monitor are applied, those expenses will be covered out of the Improvement Fund, and we'll carry a negative balance for that fund. With a negative balance of approximately $1,700, it will take up to two years to build the Improvement Fund balance back into positive territory; as long as the engine fund remains strong that should not be a problem.

Fuel prices at JetCorp have risen slightly, retail for 100LL is now $5.35 per gallon. This raises our flight rate to $60 per hour.

Aircraft Appraisal - By John

With the completion of the paint upgrade and purchase of the engine monitor and engine heater, we ran two appraisals of the upgraded aircrafts value that assumes the installation of both the engine monitor and heater. The Aerosprice QuickQuote value was assessed at $55,496 +/- 5% and the AOPA Vref comes out to be $55,834 if you assume $1000 for non-listed equipment. With Aeroprice, you submit all of your aircraft avionic and equipment information and they provide the resultant appraisal. With AOPA Vref, only certain avionic and equipment upgrades are selectable on the website but you can add in you own estimate for other non-listed upgrades. The problem is that you do not know how much to add for these non listed upgrades. You can see that although the values come out about the same, they value the individual upgrades differently. For example, VREF values the new paint at $6,000 where Aeroprice values the new paint at only $4,028.

Both of these assessments are below the $60,280 we received back in May 2006. A big factor in the reduction is the overall reduction in older aircraft values due to the number of new aircraft being built and the lower cost sport planes that are coming on the market. Also contributing to the reduction is the increased time on the aircraft and engine with resulted in a drop in value of $1500.00. With the new paint job, upgraded interior and new matching avionics, I recommend we value the plane at the higher end of the +/- 5% tolerance at $58,000

Aeroprice QuickQuote Appraisal Details

For purposes of market value calculations, all of the major value factors (those that have a significant effect on the value) are computed as deviations from the "average" aircraft of that year and model. This "average" aircraft is considered to have average airframe time, complete and original logs, average paint and interior, no damage history, and a six month old annual inspection. All AD notes are assumed to be in compliance. To provide for more accurate pricing, the core value below includes a transponder and encoder, but no other avionics.

The median core value for a 1975 Cessna 172 is $42,090 USD.

AIRFRAME TIME- The average airframe time for this year/model is 5,543 hours. Total time on this aircraft is 4,188 hours, or 76% of average.

AIRFRAME TIME ADJUSTMENT: $1,158

ENGINE- Average engine time is considered to be 45% of the recommended TBO. Added value is awarded for lower time, and a deduction is made for higher time. Additional value is also added for new, factory overhauled and remanufactured engines, or for engines overhauled by a nationally recognized facility. Factory standard engine on this aircraft is a Lycoming 0-320-E2D, with a recommended TBO of 2,000 hours OR 12 years. Time on this engine: 1,594 hours since Major Shop Overhaul.

ENGINE VALUE ADJUSTMENT: ($5,222)

AVIONICS- Value has been added for the following avionics:

UPS/Apollo SL 30 Nav/Com
Garmin GNS 430 GPS/Comm with WAAS upgrade
Dual glideslopes
Audio panel
Marker beacon receiver
Cessna wing leveler

AVIONICS VALUE ADJUSTMENT: $7,757

NOTE: Avionics value adjustments do NOT reflect the cost of new units. More realistically, they reflect the average additional premium a buyer is willing to pay for these items previously installed in this year and model aircraft.

EQUIPMENT: Additional listed equipment that substantially affects the value of this aircraft.

Long range fuel (52 gallons)
Engine Monitor
Engine heater
Fuel flow computer
Shoulder Harnesses
Light Weight Starter

EQUIPMENT VALUE ADJUSTMENT: $3,879

INTERIOR Condition: New / like new

VALUE ADJUSTMENT: $1,806

EXTERIOR Condition: New / like new

VALUE ADJUSTMENT: $4,028

DAMAGE HISTORY: Not a factor

LOGBOOK STATUS: Complete and Original

CURRENT RETAIL VALUE: $55,496 USD*

* Many additional factors and items can influence the value of a plane. Often a number of small items, not significant individually, can combine to create additional value in the mind of a buyer. Conversely, a number of small items can also cause a significant deduction. Due to the subjective nature of these factors, you should allow for value deviations of +/- 5%.

AOPA Vref Appraisal Details

The Base Retail value for a 1975 Cessna 172 is $41,000 USD.

AIRFRAME TIME- The average airframe time for this year/model is 4,800 hours. Effect on valuation=$580.83 at $0.95/hour

AIRFRAME TIME ADJUSTMENT: $580.83

ENGINE- Average engine time is considered to be 1000. Effect on valuation=($5,346.00) at $9.00/hour.

ENGINE VALUE ADJUSTMENT: ($5,346)

AVIONICS- Value has been added for the following avionics:

Garmin GNS 430 GPS/Comm (Does not consider WAAS or no WAAS)

AVIONICS VALUE ADJUSTMENT: $5,000

EQUIPMENT: Additional listed equipment that substantially affects the value of this aircraft.

Engine Monitor
Engine heater
Fuel flow computer

EQUIPMENT VALUE ADJUSTMENT: $2,600

Non Listed Add-on Equipment: Additional Non-listed equipment that affects the value of this aircraft.

WAAS Upgrade
Long Range Fuel Tanks
Lightweight Starter

EQUIPMENT VALUE ADJUSTMENT: $1,000 The problem with Vref is you don't know how much to value these add-ons

INTERIOR Condition: New / like new

VALUE ADJUSTMENT: $5,000

EXTERIOR Condition: New / like new

VALUE ADJUSTMENT: $6,000

DAMAGE HISTORY: Not a factor

LOGBOOK STATUS: Complete and Original

CURRENT RETAIL VALUE: $55,834.83* USD

* Trade in value will be considerably less due to dealer marketing costs, margins and inventory expenses. Price assumes complete logs, no damage, and all inspections complied.

Maintenance - by John

WAAS Upgrade - I'm glad we went ahead with the WAAS upgrade as Garmin just announced that after 1 Sept, the cost to upgrade an existing GNS-430 to be WAAS capable doubles from $1500 to $2995.00. The new Aircraft Supplemental Flight Manual for the GNS-430W is ready to submit to the FAA for approval.
Paint - The repainting effort is well underway. Shelby, the owner of Executive Wings, sent me the following picture on 21 July showing the plane after the second stage primer coat. As soon as I get some updated photos from Shelby, I will send them out by email.

For more photographs, go to the Club Photo-gallery.

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