Aircraft salvage

flyingcheesehead

flyingcheesehead

Touchdown! Greaser!
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iMooniac
Aight, here's a new one.

I need to learn about how aircraft salvage works, where I can find documented salvage values, and how those values change.

The Piper Seminole has a life limit on the wing of 14,663 hours. I have an opportunity to buy a Seminole that's a couple hundred hours shy of that limit for its current salvage value. Assuming I can fly that last couple hundred hours off and then turn around and sell it to the salvage place for roughly the same price, I could potentially get my multi ratings very cheap, and build twin time for roughly the same amount per hour as I'm spending on a club single right now.

For what it's worth, this crazy scheme has been 100% cooked up by me, the seller was simply going to sell the darn thing to salvage right away, so no funny business going on.

I've already spoken with the bank and the insurance company and got my quotes... Now I need to learn more about salvage before I actually do this.

Specific questions:
1) Will the salvage value go down significantly over the course of a year?
2) Will those last 200 or so hours flown make any significant difference at all?
3) Will the couple hundred hours on the engines affect the value at all, or are they simply sold as cores? If this does affect the value, how much can I expect it to drop per hour?
4) How can I determine and document the current salvage value?
5) How many different salvage outfits are out there, and who are the reputable ones?

Thanks a heap!
 
flyingcheesehead said:
The Piper Seminole has a life limit on the wing of 14,663 hours.
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Off topic, but how did they come up with THAT number? Why not 14,000 or 15,000, or even 14,500? They have it at 14,663. That's pretty specific. I'd love to know how they came up with it.
 
Just guessing but the number may come from the time axis on some materials property curve where the property reaches a limit value. Somewhere in the back of my memory is something about the S/N fatigue failure curve for aluminum never going flat like it does for steel.
 
bobby you are right, non ferrous metals do not have a fatigue curve like ferrous (steel). they will eventually fatigue no matter how low the stress is.

kent sounds like a good deal. even if you lose a little it will be worth the multi time to you. the only salvage yard i know of is wentworths in minneapolis.
 
flyingcheesehead said:
Specific questions:
1) Will the salvage value go down significantly over the course of a year?
2) Will those last 200 or so hours flown make any significant difference at all?
3) Will the couple hundred hours on the engines affect the value at all, or are they simply sold as cores? If this does affect the value, how much can I expect it to drop per hour?
4) How can I determine and document the current salvage value?
5) How many different salvage outfits are out there, and who are the reputable ones?

Thanks a heap!
Click to expand...

1) No, but there is the general economic caveat to that.
2)Depends on 3), as to the airframe, no.
3) Depends on how close to TBO they are. If they are within 200-300hrs of TBO, they're already calculated as runouts, so no difference.
4) Hahahahahahaha :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: <sniff> The way I do it is the value of the avionics and the core value of the engines and props.
5)There are several, I've done work for White Industries who are quite reputable and Al Head who is no longer in business.
 
tonycondon said:
bobby you are right, non ferrous metals do not have a fatigue curve like ferrous (steel). they will eventually fatigue no matter how low the stress is.
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The next time there is a thread about high time aircraft I'll quote you. :)
 
I would just call the salvage yards now Kent and see if they can give you an idea of what they might buy it for. Yes some won't talk to you but the smaller ones might. It wouldn't be a lie to tell them you might have one to sell shortly and just wanted a rough estimate.
(or you could do, as I see some on ebay - part it out yourself and sell each of those 20,196 parts individually yourself!)
 
Kent, I gather you're attempting a workable deal to get some cheap ME time? I'll be pretty interested in seeing what you come up with and what that couple hundred hours will cost you per hour (less fuel) after all is said and done.
 
I've dealt with Air Salvage of Dallas (www.asod.com) and found them to be nice folks to deal with. I was buying parts not selling, but I would just call them up, give them your nutty scheme and ask them to give you a rough estimate of the planes value when you are done with it. I know advance knowledge is a bonus, but you're not in the industry, and you'll never outsmart guys that have been buying salvage for years. Get several prices. If they don't want to price it, you could let it go to auction where a lot of planes are bought wholesale.

Make sure they understand that the plane will make it's last flight to their yard, and they don't have to disassemble or dray it. It will be complete, and fully functional but runout life limit on the wing. The rest of the plane is what it is. I think you will find that you'll be pretty unhappy with the offers, but remember - it's wholesale, for parts and not a retail deal.

Here's an even nuttier thought. Find a really cheap hanger/barn somewhere on a dirt strip you could rent for a year, and part it yourself. I know a spot right now I could rent a section of for about $1000/yr paid in advance.
 
Just curious... assuming the fuselage has no life limit, what's the potential cost range to rebuild a wing or manufacture wings to get more life out of the rest of the aircraft? Would it ever be worth it? I'm sure classic aircraft would be a done deal under such a consideration.
 
KennyFlys said:
Just curious... assuming the fuselage has no life limit, what's the potential cost range to rebuild a wing or manufacture wings to get more life out of the rest of the aircraft? Would it ever be worth it? I'm sure classic aircraft would be a done deal under such a consideration.
Click to expand...

On the airplane in question, I have heard $50,000.
 
Will he sell it to your for the salvage value? It would be a wash to him and you could get 200 hours and then sell it for salvage basically getting you investment back.

BTW how hard is it to keep airworthy until you sell it back and is it airworthy now?
 
smigaldi said:
Will he sell it to your for the salvage value? It would be a wash to him and you could get 200 hours and then sell it for salvage basically getting you investment back.
Click to expand...

That is EXACTLY the deal Scott. I just want to be sure of what salvage value really is and will be on it. If it lasts until the wing is run out, great. If something major like an engine blows on it, well, we throw it on a trailer and sell it to salvage anyway. Since I won't need any sort of engine reserve, etc. it should be some very cheap flying. It looks like I should be able to run it for around $125/hr with everything included (even insurance), which is what I'm spending on the 182 right now anyway.
 
That sounds like a decent plan. I hope you can work it out.
 
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