Author Topic: Price Inflation?  (Read 156 times)

california

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Price Inflation?
« on: November 15, 2018, 04:39:09 pm »
So I've started noticing that used aircraft prices seem to have skyrocketed. I used to be able to get 49.99% CRJ200's for around 12 million, and they're all now above 16mil. 788s used to be 45mil for 49.99%; are now upwards of 60mil. I've been told that there's some mechanism where the prices of used aircraft get lower as time passes, but this seems to be a systematic thing? Anyone else in my boat?

patson

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Re: Price Inflation?
« Reply #1 on: November 15, 2018, 04:53:14 pm »
I dun think there's code change that caused this

My guess is just supply and demand.

As the used aircraft gets listed high first and then the price drops slowly over time. However if someone just scoops up all the available ones, then there will be no chance for the price to drop  :D

california

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Re: Price Inflation?
« Reply #2 on: November 16, 2018, 06:51:30 am »
I'm still not too sure, prices have never gone that high in the past...

zuoyi

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Re: Price Inflation?
« Reply #3 on: November 16, 2018, 08:23:57 am »
Agreed. I'm close to broke due to high price, lots of planes waiting for renewal. 
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alex

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Re: Price Inflation?
« Reply #4 on: November 16, 2018, 01:35:04 pm »
Wait what? You don't renew planes in the used market; you just click "renew" on the plane (or use auto-renew), and the price is always the same based on condition. The renewal price is always (price of the plane new) * (1 - condition * 80%), i.e. you are essentially selling the plane (which always is at a 20% discount to its straight-line depreciated price) and buying a new plane for instant delivery.

(Side note: the actual rewewal price will sometimes deviate a little bit from this formula because of repeated rounding as the condition degrades.)

bluesky

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Re: Price Inflation?
« Reply #5 on: November 16, 2018, 01:57:09 pm »
But then you're buying a new plane, 100% condition, I think they're buying planes with like 70% to renew older planes, not the most cost efficient but cheaper in the short term and let's you keep a good service quality without too much delays.

patson

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Re: Price Inflation?
« Reply #6 on: November 16, 2018, 05:34:59 pm »
But then you're buying a new plane, 100% condition, I think they're buying planes with like 70% to renew older planes, not the most cost efficient but cheaper in the short term and let's you keep a good service quality without too much delays.

ALEX lives in a world where money is not a problem

Unlike many of us that struggle to renew our aging fleet  ;D ;D ;D

zuoyi

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Re: Price Inflation?
« Reply #7 on: November 17, 2018, 03:14:21 pm »
But then you're buying a new plane, 100% condition, I think they're buying planes with like 70% to renew older planes, not the most cost efficient but cheaper in the short term and let's you keep a good service quality without too much delays.

ALEX lives in a world where money is not a problem

Unlike many of us that struggle to renew our aging fleet  ;D ;D ;D


How's your A380 now? I'm still stuck in the long queue of 767, 787, and 747.

cokeeyay

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Re: Price Inflation?
« Reply #8 on: November 21, 2018, 11:49:15 pm »
Seriously I'm new and am trying to establish myself by purchasing more planes to increase my capacity for my higher value routes and a used EMB120 with 40% condition costs more than the price of a brand new plane. There's no way that's right

patson

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Re: Price Inflation?
« Reply #9 on: November 22, 2018, 12:20:44 am »
Seriously I'm new and am trying to establish myself by purchasing more planes to increase my capacity for my higher value routes and a used EMB120 with 40% condition costs more than the price of a brand new plane. There's no way that's right

Welcome to the game!   ;D

Used plane is listed at the 120% appraised value to start with and drop slightly every month, until it reaches 80% of its appraised value

Therefore, if airplanes are sitting around long enough and noone buys them then you can potentially get cheap airplanes.

The problem, though is that the used market seems to be very active and most of the used airplanes are bought before they have chance to drop prices :(


alex

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Re: Price Inflation?
« Reply #10 on: November 25, 2018, 05:42:51 pm »
Patson however he's correct that it should be impossible for a used plane at 40% condition to cost more than a brand new plane. It should cost at most 48% of the new price.

patson

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Re: Price Inflation?
« Reply #11 on: November 25, 2018, 05:45:41 pm »
Hmm... it sounds like a bug then?

AFAIK, the MAX price for a condition 40% airplane in the used market is

New price * 0.4 * 1.2 = so it's 0.48 as u have suggested

Are we seeing that in the market now?

patson

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Re: Price Inflation?
« Reply #12 on: December 03, 2018, 02:31:01 am »
Apology to all!

After looking at the 2nd hand airplane market, it seems that the price dropping was not working properly as players have reported

Sorry about the bug and I have applied a patch to fix it.

Hopefully price will drop as expected.

Again sorry about that!