DA40 price

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younikwoo

DA40 price

Post by younikwoo »

Planning to purchase a 2005 ish DA40. Did a search on this forum and found people are purchasing these at around $150K back in 2016, with relatively low hours. Nowadays the same plane, with higher hours, are listing at $180K-$200K. Looks like value has gone up?
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Re: DA40 price

Post by CFIDave »

The value of good used DA40s went up over the last 2-3 years, but has come down slightly since the pandemic started. Your estimate of $180K-200K for a 2005 DA40 might be the asking price but not necessarily the sales price.
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Re: DA40 price

Post by younikwoo »

CFIDave wrote: Thu Aug 27, 2020 7:40 pm The value of good used DA40s went up over the last 2-3 years, but has come down slightly since the pandemic started. Your estimate of $180K-200K for a 2005 DA40 might be the asking price but not necessarily the sales price.
Any particular reason for the value increase?
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Re: DA40 price

Post by Chris »

younikwoo wrote: Thu Aug 27, 2020 10:42 pm Any particular reason for the value increase?
I would hazard that it's a combination of the economic recovery that started a few years back and a relative lack of supply. Diamond had a gap in production for new DA40-XLTs a for a couple of years which may have contributed to the scarcity, and the last time I checked, the lead time for new aircraft orders was still quite long. I was chatting with a broker a couple of weeks ago and he said the demand for DA40s was strong. I'm sure Dave has a lot more data than I do, but to me it feels like the pandemic may have actually increased demand for some models due to pilots wanting to take their families on trips that don't involve getting on an airliner. Prices for Cessumbias and Bonanzas seem to be trending higher as well. I also haven't seen a decent used DA42-VI hit the market for a while now. :tap:
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Re: DA40 price

Post by curts63 »

So, a clean used 2012 DA40 XLS with under 500 hours is worth....? I"m going to be moving out of the Diamond and possibly into something else. Just trying to anticipate what I might get for it.

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Re: DA40 price

Post by AndrewM »

Just a data point, I purchased a nice 2008 XLS back in 2016 and then had to sell it due to moving overseas in 2017. Purchased for $235 and sold for $285. I could tell my wife that all my PPL, Instrument and other plane expenses had been paid for! :D :D

I am now in a partnership with a 2007, and certain the value of that plane has also appreciated.

There was no broker involved in the sale of my 2008 XLS. My view at the time was that stock of good DA40's was so limited a broker would not add a whole lot of value, in this particular situation. A very experienced purchaser bought it, so that viewpoint worked out in that specific instance.

BTW when I was looking to buy there were NEVER any XLT's on the market second-hand due to the reason already mentioned, but now they seem to come up regularly.

I also think another dynamic is that a lot of people who are low-time pilots looking at Diamonds also seriously consider Cirrus SRXX, and balk at the safety record. I know I did. Then when you make the decision to buy, stock of DA40/2 is seemingly always so low... so supply / demand you know how it goes...

And on that note, seemingly another tragedy. NTSB investigating the Aug. 16, 2020, crash of a Cirrus SR-22, Osage Beach, MO. Stall / spin at low altitude in the pattern on takeoff or go-around? I have not looked closely at this one, but certainly the Cirrus is seemingly a great aircraft but no where near as forgiving as our planes.
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Re: DA40 price

Post by CFIDave »

Some typical advantages of using a broker if you're selling an aircraft:
1. The broker has perhaps a more realistic idea of what you might be able to get for your plane, so you don't under-price (leaving "money on the table") or over-price (discouraging potential buyers from making an offer on your unrealistically-priced plane). There's usually a difference between asking vs. actual sales prices that has to be considered, which may be affected by how quickly you'd like the plane to sell.
2. Reaching more potential buyers than just running an ad in Controller.com or elsewhere. Experienced brokers have a large established database of customers and prospects. With good used Diamonds in short supply, these brokers will often have a list of pre-qualified buyers waiting for specific aircraft model years, condition, or with specific options -- so that many planes will sell before they're even listed publicly. The result is that planes will sell much sooner, often for higher prices than otherwise.
3. Is your plane a cosmetically-challenged but mechanically-sound "beater" best sold to an owner who wants to make money on leaseback with a flight school? Or a beautifully-maintained "pride and joy" machine best appreciated by a recreational pilot owner who wants a like-new condition aircraft? A broker will know how to find the right type of buyer for your plane at the right price.
4. Do you know how to qualify buyers who may be wasting your time?
5. Brokers will assist with the entire sales process, including helping the buyer with financing and insurance, using an escrow agent to protect everyone's financial interests, helping the buyer to arrange a pre-buy inspection, etc. so that the sales transaction goes as quickly and smoothly as possible.
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Re: DA40 price

Post by curts63 »

What is the average brokerage fee for selling the plane?
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Re: DA40 price

Post by CFIDave »

curts63 wrote: Fri Aug 28, 2020 4:02 pm What is the average brokerage fee for selling the plane?
It varies depending on the value of the aircraft, whether another plane is being purchased, whether the seller is a repeat customer, etc. The brokerage fee may more than pay for itself due to a higher sales price and reduced seller carrying cost (e.g., loan interest, insurance, hangar rent, etc. while the plane sits unsold).
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Re: DA40 price

Post by AndrewM »

curts63 wrote: Fri Aug 28, 2020 4:02 pm What is the average brokerage fee for selling the plane?
As Dave says, there are multiple variables. In my case, I got an estimate from the broker who originally sold me the plane (so I guess that would make me a repeat customer...) and another. From memory I think it would have been $5-7k'ish.

For these types of things I also factor in the value of my time, and typically would not mess around with something like this that that could chew up a lot of my time, be a hassle factor, and also dealing with all the documentation that goes along with an aircraft sale. However in this instance I decided to give it a try myself and I guess I was lucky it all went smoothly and very quickly.

One word of caution though, and this is not a generalized knock on brokers, just my personal experience. When I bought the XLS I had not flown the plane or even seen it in person. The agreement I had with the seller and broker was that I would fly the plane with the broker to my home field, where the pre-buy inspection would occur, and then assuming all went well, and any airworthiness items or substantial surprises that needed to be fixed were fixed, we would close the deal at the agreed price.

When we landed at my home field the broker immediately started pressuring me, quite a bit actually, to sign a document saying all was done and no further action was required. The document specifically said we were set to close and nothing further required. And this was a brand name broker everyone that has a Diamond would know of (not Dave though!). I told the individual I was offended, we had agreed the pre-buy and so on. Told the person we could stick to the agreement we already had in writing or he could fly the plane back himself and I would find another one. In the end pre-buy was done, a few tiny things needed to be done and everything closed smoothly. But that interaction really pissed me off, and took the shine off what should have been a very clear, smooth and enjoyable experience of purchasing one's first airplane!

So yes... brokers can certainly add a huge amount of value. However the concept of caveat emptor remains (on both buy and sell side).
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