FROM TOP to BOTTOM

The aircraft in Vref are listed alphabetically
by manufacturer from small to large.
Turbine-powered aircraft are in a separate section
at the TURBINE tab.

Prices Include: This section, located at the beginning of every model, outlines the general equipment and condition of each type of aircraft. Avionics are very important to most airplanes. Mech. refers to the older mechanical style radios. 360 channel radios are illegal for use - deduct. On the other hand, if a Beech Baron 55A (and most other pistons) has a new set of GPS/Comms, one can add as much as $20,000 to $30,000, or even more if new wiring plus radar, stormscope, etc., is involved. Many items are listed in the Add-Ons box. Others are listed in the Avionics sections in the back of this edition. We did not bother to list relatively inexpensive items such as transponders and marker beacons. Virtually every airplane with an electrical system has a transponder. If it doesn’t, deduct.

Vref has priced most aircraft with mid-life engines. This SMOH (Since Major Overhaul) number in the Prices Include: section varies somewhat. Some of the smaller engines (and most turbines) routinely reach TBO. Therefore, we simply divided TBO in half. If the recommended TBO is 2,000 hours, the SMOH number will be 1,000 hours. If the aircraft in question has less time on the engine(s), you will want to add some dollars using the ENG RATE number located in the Add-Ons box just below Prices Include. (More on that later.) The ENG RATE is for each engine. If the engine(s) has higher time than the SMOH number, deduct. On some piston engines, the industry wisely prefers to build in a margin. Therefore, we have used half of 85% of TBO for the SMOH number for these engines. Many owners are opting for a factory remanufactured or factory rebuilt engine instead of an overhaul. A Factory Reman price is listed in the engine box for easy reference.

Most airplanes in Vref are priced with mid-life engines and inspections. If an inspection such as an annual is due, deduct. An annual on a light single may only cost several thousand dollars. However, if an expensive annual has just been completed, that removes the negative; this adds value to any airplane. On larger aircraft, maintenance history/inspection status is one of the most important factors in determining value. Corrosion bulletins can be a key factor in many transactions. A hot section inspection can easily run in excess of $40,000 for one engine. A 12-year inspection on a Lear can be $125,000. Account for inspection status when appraising each airplane.

Most piston airplanes in Vref are priced with 7-rated paint and interior. Turbines (and the Cessna 421Cs & 414s) are priced with like new paint and interior. Yes, we know the 1-10 rating scale is very subjective. Please let us know what you think constitutes a 9, 10, 6, etc.

Some important notes about Prices Include: Each airplane is priced with all ADs and Mandatory Service Bulletins complied. If this tenet has not been met, deduct accordingly. Also, each is priced with no damage history and original, complete logbooks. True, damage and missing logs has a varied effect depending on a multitude of factors, but no one seeks out a plane with damage and missing logs. See the Damage History Chart at the end of this section.

Add-Ons: At the beginning of this list is ENG RATE or ENGINE RATE. Use these numbers to add for low engine time and to deduct for high engine time. The ENG RATE value is for each engine. High would be anything above the SMOH number (SOH for turbines) listed in Prices Include. Low would be anything below this number. This section lists some of the more common and more expensive items that should be added (or deducted) to the value of the Retail and Wholesale prices of each airplane. It is quite common for older airplanes to be upgraded with digital radios. The KX 155 is one of the most popular. There are many additional, excellent upgrades from Collins, Garmin, and others. The $2,500 figure (for KX155) is for each radio. We have noticed that many owners upgrade the #1 navcom, leaving a mechanical radio in the #2 slot. There are, of course, many more radios that can be included in this list. If the radio package is better or worse than what is listed, add or deduct accordingly. More avionics can be found in the back of the book in the New Avionics and the Used Avionics sections.

New paint and interior (or Like New) are worthy adds. We realize that one can spend practically any sum on refurbishing an aircraft. These are typical, average prices for a basic strip & paint that dealers and lenders are willing to allow. Extras such as corrosion treatment may drive prices up. The Like New int price is cloth not leather. A new leather interior can easily be twice the prices listed. W.S. is wholesale.

Performance & Specs: Some basic performance numbers are listed for comparison purposes only. In most cases, these numbers are under optimum conditions. The real world will yield less dazzling performance. For flight planning purposes, use the POH. Config (Configuration) is a general description of the airplane. Sgl, pst would mean that the airplane is single-engine and piston-powered.

Mods/Conv: There are thousands of STCs available for the general aviation fleet. We have listed some of the most valuable and noteworthy, and have plans to include more. Some of these prices are aftermarket values. When the prices are new, the word New will be indicated and the W.S. will be blank. Everyone has his or her own opinion of worth regarding each mod. If one operates a Skyhawk from a 12,000 ft. strip, a STOL kit has little value.

RAM Aircraft Depreciation Table
RAM Aircraft recommends deducting 3% per year (plus engine usage) for their mods. The following is an example for a CE 414A Series IV, new value $86,300.

1. Mod done in 2001. ($86,300 x 3%/yr x 3 years) = $ 7,767
   [Engine hourly rate: $86,300 / 1600hr TBO = $53.94]
2. Assuming 700hrs (Total) on engines since mod. 700 x $53.94 = $37,758
3. Total to deduct from $86,300 if 3 yr old mod = $45,525
4. Total to add to Vref $Retail or Whlsl for Series IV = $40,775
   

Engine: This box contains a description of each engine including manufacturer, horsepower, TBO and engine model number. We have also included an Average Overhaul figure in dollars. This number will include some accessory overhaul, but not removal or installation. The ENG RATE figure in Add-Ons is calculated using the overhaul number not factory reman. The prices are for each engine. A Factory Remanufactured price is listed for reference. Many owners opt for factory remanned engines. If this is the case, additional compensation is in order. Also, there are several engine shops that have gained an international reputation for excellence. Freshly overhauled engines from these shops will add significant value to an aircraft.

On turbines, the Average Overhaul price includes about half of the possible life-limited parts. If more life-limited parts (such as in 2nd run engines) need to be replaced, the overhaul will be much more costly. Engine insurance programs such as MSP or JSSI are not included with most turbine aircraft in Vref. If the aircraft in question has Full MSP, Full JSSI or Power by the Hour&Mac226; consider that aircraft to have zero-time engines, and add dollars accordingly. Caution: There are several variations to each of these programs which may result in lower coverage. For example, on some 2nd run engines JSSI may not cover certain cycle limited parts. Check the contract carefully for each engine.

Market Data: This area contains an Activity number for most airplanes. It originates from the FAA’s report on transactions from the previous three months. Demand Rating is a way of estimating an airplane’s relative strength in the marketplace. The scale runs from AAA to C. Use the following table as a general guideline.

The Demand Rating is largely dependent on price versus condition. Even though a certain type of airplane may be enjoying a strong market, if someone is asking too much for a specific serial number, its time on the market may be longer than the average. Recent ADs also are included in the Market Data box.

Yr: For most piston aircraft, there is a year model designation. Year model becomes much less distinct for turbine aircraft. Most jet manufacturers do not designate a model year. However, most owners still refer to their aircraft by year. Check records and logs carefully when trying to determine model year. The year referred to can be date built, date of first delivery or something else entirely. There is no industry standard.

Serial No: Most serial numbers in Vref originated from the manufacturer. In some cases, they were derived from FAA records. Use extreme caution when trying to determine serial number/model year effectivity, especially on turbine equipment. There is no industry standard. Check logbooks and aircraft records carefully. The hyphen in a serial number string means ‘thru’.

%New: This number indicates what percentage of new the airplane is currently trading at. For example, if it says 83, then the current retail is 83% of the airplane’s original price when new. Many airplanes are now selling for more than when they were new. These numbers will be in excess of 100. 132 in the %New column means that current retail is 132% of the original new price.

$Retail: This is the average retail price for each aircraft as reported by dealers and lenders during the previous quarter. It reflects an aircraft with all ADs and Mandatory Service Bulletins done. Also, airplanes with damage history or missing logs should be valued somewhere below this number.

$Trend: An up arrow (pointing to the top of the page) indicates that the Retail price went up (during the previous quarter) by the amount listed to the right of the arrow. It is abbreviated; multiply by $1,000. A down arrow shows the price went down. A double-headed arrow (side-to-side) is used for no change.

$Range: This column is in dollars not nautical miles. As aircraft age we have noticed there is much more variation in condition and price. The Range column allows the industry to address this fact. This is a plus and minus number. For aircraft in top condition (one corporate owner, always hangared) add part or all of the Range number. If the aircraft is in poor condition (out of annual, registered in a politically challenged part of the world), deduct the number. Obviously, a detailed appraisal which accounts for each variable (engines, maint., etc.) is the more accountable method. Most piston airplanes in Vref are considered to be in average to good condition. If an airplane is expertly restored and updated with no excuses, it will command much more than Book. See Condition/History Guidelines at the end of this section.

Whlsl: There is no secret code here. Read it forward. Wholesale is abbreviated, so multiply by $1,000. This column is the wholesale price for a clean aircraft with no needs. If something is broken or the airplane needs more than a wash and vacuum, deduct. If the aircraft has damage history, missing logs, inspection(s) due or any other deficiency, deduct. An exceptionally low time, perfect-in-every-way airplane will wholesale above these numbers. A dog will be well below these prices.

AFTT $/Hr: We have included an average airframe time for each airplane in the book. If the vehicle in question has more time on it than the average AFTT listed, deduct using the $/Hr number (dollar per hour) to the right of AFTT. If it is a lower time aircraft, add value using the $/Hr number. Some good judgment is in order for this exercise. If an aircraft has extremely low time, it is possible that it has gone long periods without flying. In some of these cases, seals may be leaky or rust may have accumulated on engine parts. At the other extreme, if an airplane has flown a lot, but has also been professionally maintained, it might be in better condition (ready to go) than an airplane that has been inactive. A general rule of thumb on airplanes with extremely high or low airframe time is to add or deduct about 20% to 25% (of its value), then stop.