VREF Value Rant

MyassisDragon

MyassisDragon

Line Up and Wait
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Mr Fred
I spent the $250 and purchased a subscription to VREF while in hunt for the new airplane (new to me that is) and I am noticing something odd.

Everything being sold by brokers is 30% to 50% higher than book value for retail (not even going to mention wholesale). :mad2::mad2:

Now I understand the need to make a profit, but this is crazy. Most of the planes listed on controller for $150k only have a VREF of $110k in perfect condition. With the occasional private party being in the correct range.

I even looked at a plane 2 months ago that was listed at $65k (correct VREF Retail) then bought and relisted by another broker for $90k:confused:

How closely can I trust this VREF value? Isn't this what the banks and insurance companies use for their valuation or am I missing something:dunno:
 
Sorry you blew $250.


I have no clue what the vref website thinks my plane is worth, I do know what they typically sell for and how they are normally equipped.

The aircraft are worth what the market will bear, you just have to put your feelers out there and get the prices yourself, there ain't a app for that ;)
 
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Vref hasnt been anywhere close (except maybe, maybe on Cirrus) in a very long time...

banks love it because it protects them on loans etc...buyers hate it because it makes them look like they are overpaying when they may be not.

you have to find out the comparable aircaft and figure out what things are actually selling for which can be tricky.
 
AOPA has a free VREF tool, can use it like 5 times per day or something if you're a member. I used it on the plane I bought. But yeah, you can't rely on that to give you an accurate price.

It's a buyers market right now, lotta planes are selling for bargain amounts. If someone tries to sell you something overpriced, just walk, there are plenty of options out there.

Vref is really only good for two things: loan and insurance. Do you think a dealer would sell you a car at the blue book value? Or buy it from you for the same amount? Not a chance. They are going to kneecap you in price and sell it with a markup, it's just the way of things.
 
taters said:
Vref hasnt been anywhere close (except maybe, maybe on Cirrus) in a very long time...
Click to expand...


VREF on a mid time 2001 Cirrus SR22 = $116k Retail - $95K wholesale
Average asking price looks around $150-170K

Or maybe not too close:dunno:
 
V rev can be helpful if you are trading a plane,gives you. An idea of the difference in price,both will be off.as less sales occur,they have less to average out the true values.
 
James331 said:
Sorry you blew $250.


I have no clue what the vref website thinks my plane is worth, I do know what they typically sell for and how they are normally equipped.

The aircraft are worth what the market will bear, you just have to put your feelers out there and get the prices yourself, there ain't a app for that ;)
Click to expand...

Didnt really blow the money. It gave me a good place to start with offers, without looking at it, I would have started higher. :) At least $250 bucks higher...:rofl:
 
frfly172 said:
V rev can be helpful if you are trading a plane,gives you. An idea of the difference in price,both will be off.as less sales occur,they have less to average out the true values.
Click to expand...

The other thing I find interesting is sale price trends for different planes, everything bottomed out in 2009 and small under 200hp planes like pipers are regaining their value. Older planes like vtail bonanzas are flat, and Cirrus's (since 2001) are just on a downhill trend, make sense though, new depreciation,
 
MyassisDragon said:
VREF on a mid time 2001 Cirrus SR22 = $116k Retail - $95K wholesale
Average asking price looks around $150-170K

Or maybe not too close:dunno:
Click to expand...

sold an 06 in 2008 , back then the actual selling price at a large Cirrus brokerage was within a grand or 2 of Vref...I would expect nothing but divergence since.
 
Has any one taken the same airplane and valued it on the AOPA Vref vs the actual Vref that you buy lately?

Are the values the same or different?

The banks will use the actual vref report that you buy,
 
strangebird said:
Has any one taken the same airplane and valued it on the AOPA Vref vs the actual Vref that you buy lately?

Are the values the same or different?

The banks will use the actual vref report that you buy,
Click to expand...

Just compared a 2001 base cirrus and the prices were within 1k

The only problem with the aopa version is it's limited regarding options IE g500 or aspen glass

And you can't adjust for items like log book condition or see the price sales history.

But they seem to be close


Sent from my iPad using Tapatalk HD
 
MyassisDragon said:
Didnt really blow the money. It gave me a good place to start with offers, without looking at it, I would have started higher. :) At least $250 bucks higher...:rofl:
Click to expand...

Well played good sir :lol:
 
First, forget asking prices.
I thought VREF used actual prices of planes sold? If true, they will always behind the curve...I agree they don't have a way of evaluating modern avionics.
 
When I bought my 1st Cirrus VREF was on the high side. When I bought my 2nd Cirrus it was still on the high side :)
 
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