Current Mooney Market Report 
Up-Dated Sept 29, 2004
MOA Members, Please Click Here To See Current Market Specify On Individual Model Mooneys 

A MOA Staff Report Moderated By Dave Monacell and Coy Jacob

Late Summer/Early Fall 2004 Market Up-Date
 

There is no denying that like most all of the "owner-flown" GA market, the Mooney resale market has been slow if not depressed.   Except for possibly the lower end older "pre-201s", this is a buyers market and many models of M20s have declined some 5-10% in the Aircraft Price Digest Bluebook (again) in the last 6-12 months.  Most reports indicate good buys can be had in the Missile and Rocket conversion markets as well as older turbo TLS models.   Even the relatively scarce M20K/252s have slowed in demand as supply roughly equals demand.  

However with that said, there are clear signs that the market is showing signs of strengthening if  not rebounding to some degree.   Buyer interest is definitely on the upswing and prices especially within the "under $150K" group are firming up.  

There is little doubt that significant stock market trends affect major consumer spending for items such as aircraft, boats, RV's, and luxury autos etc.  In the last 5 years or so, we are seeing more of a direct correlation there then in the decade prior.   Additionally, as of the middle of July the recent stream of major corporation bankruptcy and (apparent) CEO mis-management has influenced the stock market negatively to the extent that this too has had an effect on major consumer spending such as new or "near-new" GA aircraft.  

It appears that Mooney Airplane Company may be adequately funded (at least for the time being) and buyer confidence has returned especially in light of MAC's recent introduction of Garmin inspired MFD or "glass panel" equipped Ovations and TLS/Bravos.  As time goes on the stigma attached to the prior financial problems is dwindling in most buyers minds.  MOA staff is impressed with their apparent intentions, funding, and ability to attract experienced management of high quality, so we give them a "thumbs up" thus far, but the market opinions will be the true test.  In the mien time, owners of "near new" or late model M20s seem to be taking the brunt of the hesitancy within the market. 

It is also important to note that early reports at Oshkosh are highly optimistic and many GA vendors and suppliers report an opening-up of consumer wallets and near record "over the counter" sales at the popular Wisconsin EAA fly-in.

 Last 12-24 Month Recap
Prior to this last fall, there is no question the U.S economy has been blessed with one of the most amazing boom periods in recent memory.  This fact as well as two other major factors such as a booming real estate market and (what many observers felt was) an overstated or inflated stock market, led to prices appreciating dramatically and dealers inventory "churning" at an extremely rapid rate. 

Furthermore, what was equally apparent was the fact demand for good clean used Mooneys priced significantly below new replacement, far outstripped supply for the last few years. While actual resale prices didn't go up (in most cases) to keep up with the wild demand for nearly every M20 under $150K, it wasn't un-common for buyers to readily plunk down $10-15,000+ over "official" bluebook values for quality used Mooneys, especially in the under $200K categories.

Especially hard to find were the M20J's under $95K+/-, turbo M20K's under $120K and nearly any good highly modified or re-furbed Mooney under $65K which didn't need lots of maintenance or engine/airframe re-furb work.  For the last two years or so, most every used Mooney dealer/broker has had the common complaint of not being able to get quality inventory at anything close to wholesale in years.  For all practical purposes, the Bluebook values were low or off by 10-15%+.  Most active used brokers reported it wasn't uncommon to have multiple buyers for many quality M20's being offered at anything close to Bluebook Retail.  

High dollar or "near new" Mooneys weren't faring quite as well, notably with the $250K+ Ovations being in ample supply especially for the last year or so. High dollar TLS were also not seen as super fast inventory to market, but being somewhat more versatile in mission design once the "Bravo mod" proved itself, the TLS market seemed to be fairly solid.  

The Long Anticipated Market "Adjustment..."
The wildly optimistic Mooney market abruptly came to a screeching halt just prior to the Presidential Election last November and coincided nearly exactly with the anticipated stock market "readjustment" shortly prior.  Perhaps far closer than any of us in the market realized, the Mooney market (as does the GA market) has now shown a pattern of somewhat following the U.S. stock market both up and down.  There is little question it has now trailed it's downward spiral, at least as far as demand goes.  While as of early summer, asking prices have stayed relatively high, the time it takes to market nearly any used M20 has more than doubled if not quadrupled or more.  Nearly every Mooney dealer/broker contacted as of 3/1/01 verifies that otherwise good Mooneys are now staying in inventory months rather than just a few days or a week or two.  

Are Buyers Becoming More Value Conscience?  In a word: yes. On top of that, sellers who find themselves in need of a quick sale had better be prepared to bring their Mooney up to a somewhat higher standard of overall "sale readiness" and get everything in good working order and looking good, or be prepared to negotiate price.  Prior to the stock market downward spirals, sellers all most sellers had to do was simply open their hangar doors and announce their Mooney could be for sale.  While it may take a few months for this new market psychic to sink in to sellers, there is little question Mooney buyers now have a far greater selection of somewhat veteran or "stale" inventory by which to choose. In other words, the typical seller simply can't sell his (under $150K) Mooney for nearly any price he wanted like they all use to be able to for the last few years.  

Mooney buyers, make no mistake.  Don't jump for glee just yet, or ever for that matter the Mooney market simply is too small and the superior efficiency of the breed it to significant!  Facts are, the Mooney market is, and will always remain a fairly contrite market and (in some important ways), a world apart from many other GA aircraft.  Mooney buyers simply will never have the quantity of aircraft on the market in your chosen price range that (say) Bonanza buyers will.  After all, there are slightly less than 8,000 M20's in the U.S. market as compared to over 18,000 V-Tails, and who knows how many brand "P or C" aircraft.  Thus there will never be an overabundance of certain models for sale at nearly any time like many (or most) of their competitors.  For example, if you are looking for a good clean 252 you only have about 148 to choose from in the U.S. market.  If you are looking for a M20J under $120K, you only have about 1,200+/- to chose from which were built prior to '84.  

While it may be more of a buyers market, serious buyers of used Mooneys at anywhere under some 50-60%+/- of current production new replacement, will never have the selection of say, Bonanza, Arrow, or Cessna buyers; a fact all Mooney buyers need to keep forefront in mind. 

Click Here for MOA's List of new and pre-owned Mooney Aircraft Dealer/Brokers
MOA Members, Please Click Here To See Market Specifics On Individual Model Mooneys