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Post subject: Re: Talk me into / out of a Meridian Posted: 12 Mar 2023, 16:23 |
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Joined: 12/03/14 Posts: 20217 Post Likes: +25366 Company: Ciholas, Inc Location: KEHR
Aircraft: C560V
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Username Protected wrote: DO NOT BUY AIRPLANES WITHOUT A PREBUY! I've become less and less sure prebuy inspections are worth it. Every plane I bought before this had a prebuy, but serious things are always missed. The only prebuy that is worth anything is a full on inspection, but you rarely get to do that due to logistics, shop time, seller hesitancy, etc. Honestly, my outcome from this purchase was less surprising than what I had when I bought planes with prebuy inspections. I think that is because planes in this class get better maintenance overall. Quote: Dang, there's enough that can be missed with a prebuy, we did a full prebuy at Bombardier on that 45XR I mentioned above, last year a new inspection came out, $300k in corrosion repairs! Can you imagine someone buying one and not doing that inspection? Plenty of planes go through prebuys and stuff like that is missed. Quote: A prebuy on a V should take 3-4 weeks That's a phase 1-5 time scale, which is ridiculous. For my V, I did a paperwork review (which is the most important thing to do in this class airplane), had engines borescoped, did a pretty thorough shake down flight (with a Cessna test pilot, no less), and I personally examined a few things myself (like tail cone condition, for example). My flight test used a report format that Cessna used for production flight test. Had like 300 test points on it. We went to FL450. Quote: You mentioned 20 items, that's exactly what we want to find on a prebuy. Sum total of those 20 items cost me less than $5K to fix. Not a big deal on this scale of purchase. The most expensive thing was the right engine ignition leads were the wrong type. They were the pin type instead of the button type. This issue had been missed for YEARS of inspections since they were wrongly install at some point at the factory service center. That cost me $2K to get the right ones. I lay odds a prebuy doesn't find this at all given how many times it was missed in the past. Mike C.
_________________ Email mikec (at) ciholas.com
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Post subject: Re: Talk me into / out of a Meridian Posted: 12 Mar 2023, 16:33 |
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Joined: 12/03/14 Posts: 20217 Post Likes: +25366 Company: Ciholas, Inc Location: KEHR
Aircraft: C560V
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Username Protected wrote: I typed it because Beechtalk is a source of information for many and I want to be clear about how you should go about buying an airplane. Your viewpoint is cut from the "nobody got fired for buying IBM" mentality. You pay for reputations and impressions of quality. I think your viewpoint works for certain class of people who have the excess money to throw it around and feel like they got what they paid for. For others, the money following your advice is wasted and can keep them out of a plane they could otherwise afford. It is clear why you have a very different impression of what it cost to fly my plane based on the vendors you recommend to do the work. It is easy to recommend expensive vendors when you aren't the one paying the bill. You try to maintain an aura of expertise around your advice. That is basically your product that you sell. Spreading FUD for not doing it your way is one tactic to do this. Your way is not the only way. Mike C.
_________________ Email mikec (at) ciholas.com
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Post subject: Re: Talk me into / out of a Meridian Posted: 12 Mar 2023, 17:11 |
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Joined: 05/23/13 Posts: 7995 Post Likes: +10316 Company: Jet Acquisitions Location: Franklin, TN 615-739-9091 chip@jetacq.com
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Username Protected wrote: I typed it because Beechtalk is a source of information for many and I want to be clear about how you should go about buying an airplane. Your viewpoint is cut from the "nobody got fired for buying IBM" mentality. You pay for reputations and impressions of quality. I think your viewpoint works for certain class of people who have the excess money to throw it around and feel like they got what they paid for. For others, the money following your advice is wasted and can keep them out of a plane they could otherwise afford. It is clear why you have a very different impression of what it cost to fly my plane based on the vendors you recommend to do the work. It is easy to recommend expensive vendors when you aren't the one paying the bill. You try to maintain an aura of expertise around your advice. That is basically your product that you sell. Spreading FUD for not doing it your way is one tactic to do this. Your way is not the only way. Mike C.
Mike,
Almost every airplane we acquire goes through a prebuy that includes major inspections, on a legacy Citation product, I prefer to be able to do the Phase 5, but if not able because of calendar we certainly do a Phase 1-4. On King Airs, the prebuys always include a full Phase 1-4 because that it the only way you are actually looking at the entire aircraft.
You act like doing a full pre-purchase inspection is a) often not allowed or b) not worth it... that's simply false. In most cases, if a seller refuses to let us take the airplane to prebuy, we pass... too much risk they are hiding something.
You are participating in this false narrative that one shop charges $12k to do an inspection and another charges $100k and the difference is profit. That is ridiculous.
If a big shop charges $100k and a small shop charges $85k that would be realistic delta and up to the individual operator to decide where to go. Remember, all of these inspections take time to accomplish, one shop can do it a little cheaper because of less overhead, but that's it. The only way to dramatically reduce the bill is to not actually do the inspection. We call this "pencil whipping".
People think that reputable shops rip people off because they take an airplane that has been poorly maintained by Joe's airplane garage to an actual maintenance facility and the bill is six figures. That's not their fault, that's Joe's fault.
I maintain an aura of expertise on this subject because I am a professional who happens to buy airplanes for a living. I know what I am doing and I have used every size shop on the planet, from one man shops to the largest in the industry. I make recommendations to our clients, I give them the pros and cons, they almost always choose the bigger shop. These are smart people, unlikely that they are all wrong.
You're a very good researcher, but you lack actual hands on experience with the subject we are discussing here. I don't advise people how to fly airplanes, you would do a much better job of that. When it comes to buying them if I think you are giving bad advice, I'm going to say so.
Sure, things get missed in prebuys, but you know what, most things don't get missed. The idea of doing a thorough pre-purchase inspection is that you get the seller to pay for any faults or for maintenance that wasn't done properly. I use to work for an aircraft dealer, we didn't like for our older airplanes go to prebuy, you know why? Because it cut into our profit margin.
Buyer Beware.
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Post subject: Re: Talk me into / out of a Meridian Posted: 12 Mar 2023, 17:18 |
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Joined: 08/14/13 Posts: 6410 Post Likes: +5145
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Username Protected wrote: It is easy to recommend expensive vendors when you aren't the one paying the bill.
You try to maintain an aura of expertise around your advice. That is basically your product that you sell. Spreading FUD for not doing it your way is one tactic to do this. Your way is not the only way.
I provided some invoices from one of Chip’s more favored shops to emphasize this point to the larger audience a while back and I’ve paid the price to agree with you on this one Mike, such an unpleasant experience that I wouldn’t wish on any new owner/operator viewtopic.php?f=4&t=208099
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Post subject: Re: Talk me into / out of a Meridian Posted: 12 Mar 2023, 17:34 |
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Joined: 05/23/13 Posts: 7995 Post Likes: +10316 Company: Jet Acquisitions Location: Franklin, TN 615-739-9091 chip@jetacq.com
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Username Protected wrote: It is easy to recommend expensive vendors when you aren't the one paying the bill.
You try to maintain an aura of expertise around your advice. That is basically your product that you sell. Spreading FUD for not doing it your way is one tactic to do this. Your way is not the only way.
I provided some invoices from one of Chip’s more favored shops to emphasize this point to the larger audience a while back and I’ve paid the price to agree with you on this one Mike, such an unpleasant experience that I wouldn’t wish on any new owner/operator viewtopic.php?f=4&t=208099
It's funny, over the last several years, I've been involved with dozens of inspections at Stevens Nashville, over the entire time we have been using them, we've had two clients that were not happy. What are the odds that you went there once and it was so bad?
Many of our clients use Stevens to maintain their aircraft, King Airs and Citations. Again, all happy. It's not just my clients, I see the same people and same airplanes in there year after year. You think all those people are stupid?
I was just there a few days ago, begging to get a CJ2+ into prebuy next week, the shop is full... but you make it sound like they screw everyone. Strange.
I don't like the freight and Misc charges either, but this is normal in the industry.
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Post subject: Re: Talk me into / out of a Meridian Posted: 12 Mar 2023, 17:50 |
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Joined: 12/03/14 Posts: 20217 Post Likes: +25366 Company: Ciholas, Inc Location: KEHR
Aircraft: C560V
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Username Protected wrote: I provided some invoices from one of Chip’s more favored shops to emphasize this point to the larger audience a while back and I’ve paid the price to agree with you on this one Mike, such an unpleasant experience that I wouldn’t wish on any new owner/operator It doesn't seem like much value add to be a consultant that basically tells their clients to do more extensive things at the most expensive shops. You might as well bypass them and just go to those shops directly. The list is short and well known: Textron, Duncan, Stevens. You don't need to pay someone else to tell you that list. The real value would be in providing guidance that leads to your outcomes and cost being LESS. Then your service is actually improving your customer's experience. Those high priced shops have a certain clientele. Cost is not the first priority. For many owners, that simply doesn't work, but then, those folks don't hire someone whose advice is to go there in the first place. Thus the market impression can be narrowed by self selected and not truly cover all of it. It is kind of like asking a consultant to recommend a car you should buy and all they tell you is to get a $150K Mercedes. Well, you could have just gone to the dealer yourself, the advice was not actually all that enlightening or helpful. Mike C.
_________________ Email mikec (at) ciholas.com
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Post subject: Re: Talk me into / out of a Meridian Posted: 12 Mar 2023, 17:56 |
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Joined: 12/03/14 Posts: 20217 Post Likes: +25366 Company: Ciholas, Inc Location: KEHR
Aircraft: C560V
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Username Protected wrote: I don't like the freight and Misc charges either, but this is normal in the industry. In your world, yes. You only use shops like that so you think that is all there is. In my world, no. I don't use shops like that. Your normal is not everybody's normal. Mike C.
_________________ Email mikec (at) ciholas.com
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Post subject: Re: Talk me into / out of a Meridian Posted: 12 Mar 2023, 18:12 |
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Joined: 05/23/13 Posts: 7995 Post Likes: +10316 Company: Jet Acquisitions Location: Franklin, TN 615-739-9091 chip@jetacq.com
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Username Protected wrote: I provided some invoices from one of Chip’s more favored shops to emphasize this point to the larger audience a while back and I’ve paid the price to agree with you on this one Mike, such an unpleasant experience that I wouldn’t wish on any new owner/operator It doesn't seem like much value add to be a consultant that basically tells their clients to do more extensive things at the most expensive shops. You might as well bypass them and just go to those shops directly. The list is short and well known: Textron, Duncan, Stevens. You don't need to pay someone else to tell you that list. The real value would be in providing guidance that leads to your outcomes and cost being LESS. Then your service is actually improving your customer's experience. Those high priced shops have a certain clientele. Cost is not the first priority. For many owners, that simply doesn't work, but then, those folks don't hire someone whose advice is to go there in the first place. Thus the market impression can be narrowed by self selected and not truly cover all of it. It is kind of like asking a consultant to recommend a car you should buy and all they tell you is to get a $150K Mercedes. Well, you could have just gone to the dealer yourself, the advice was not actually all that enlightening or helpful. Mike C.
I agree, but yet people still hire maintenance consultants.
Or if you were referring to my company, we are not maintenance consultants.
Getting a pre-purchase inspection done is just a small part of what we do. It doesn't make any sense to save $10k or $20k on a prebuy, the savings is making sure that anything wrong with the airplane is being paid for by the previous owner. My client pays for the inspection, the seller pays to correct the discrepancies.
We get paid to find airplanes for our clients and to manage the process of getting them bought. We save our clients money in several ways, the primary way we save them money is giving them options to begin with, you bought an airplane that was listed on Controller, a few months later we bought a V for a client, we found one that was off market... that is the difference and that is what we do.
"The real value would be in providing guidance that leads to your outcomes and cost being LESS."
This what we do Mike. We provide guidance that leads to our clients having to spend less money for their airplane and less money after they buy it.
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Post subject: Re: Talk me into / out of a Meridian Posted: 12 Mar 2023, 18:24 |
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Joined: 05/23/13 Posts: 7995 Post Likes: +10316 Company: Jet Acquisitions Location: Franklin, TN 615-739-9091 chip@jetacq.com
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Username Protected wrote: I don't like the freight and Misc charges either, but this is normal in the industry. In your world, yes. You only use shops like that so you think that is all there is. In my world, no. I don't use shops like that. Your normal is not everybody's normal. Mike C.
Actually I would say the opposite is true, you've owned a couple of small fleet turbines (MU-2 267 airplanes, Citation V 249 airplanes) and taken them to small shops. I'm dealing in the bulk of the turbine aircraft world. Most jet owners cannot afford for their airplane to be down for weeks / months at a small shop and most people who can afford to own jets can't afford to spend the time required to source their own parts.
We really don't have any choice, if you take an airplane to a small shop with no name recognition and they come up with $100k in squawks, the seller will cry foul and you'll most likely lose the opportunity to buy that airplane, when this happens the buyer loses all of the money they spent on a prebuy, plus test flights and relocation cost... not to mention time and opportunity.
I've never had an airplane fail or fall out of prebuy. I'm sure it will happen sooner or later, but so far I've been right about the airplanes we have chosen and the shops we have used.
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Post subject: Re: Talk me into / out of a Meridian Posted: 12 Mar 2023, 18:53 |
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Joined: 12/03/14 Posts: 20217 Post Likes: +25366 Company: Ciholas, Inc Location: KEHR
Aircraft: C560V
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Username Protected wrote: Most jet owners cannot afford for their airplane to be down for weeks And yet you say a prebuy on V should take 4 weeks at your gold plated shops. That isn't consistent. Quote: most people who can afford to own jets can't afford to spend the time required to source their own parts. For those people willing to hire you, that's probably a true statement about them. Quote: We really don't have any choice, if you take an airplane to a small shop with no name recognition and they come up with $100k in squawks, the seller will cry foul and you'll most likely lose the opportunity to buy that airplane, when this happens the buyer loses all of the money they spent on a prebuy, plus test flights and relocation cost... not to mention time and opportunity. What are you saying here? That the small shop is doing a better job finding the problems? That the large shop magically doesn't have relocation costs or inspection expenses? That sellers would rather have a $250K squawk list from the large shop than a $100K one from the small shop? None of that makes sense to me. Mike C.
_________________ Email mikec (at) ciholas.com
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Post subject: Re: Talk me into / out of a Meridian Posted: 12 Mar 2023, 19:52 |
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Joined: 08/14/13 Posts: 6410 Post Likes: +5145
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Username Protected wrote: I agree, but yet people still hire maintenance consultants.
How many of those maintenance consultants encourage their clients to take their airplanes to Elliott, Stevens or Textron?
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Post subject: Re: Talk me into / out of a Meridian Posted: 12 Mar 2023, 20:09 |
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Joined: 01/07/21 Posts: 406 Post Likes: +392
Aircraft: M20J/R, Sr22, SR20
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So...Should I buy a Meridian?
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Post subject: Re: Talk me into / out of a Meridian Posted: 12 Mar 2023, 20:26 |
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Joined: 11/30/12 Posts: 4849 Post Likes: +5474 Location: Santa Fe, NM (KSAF)
Aircraft: B200, 500B
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Username Protected wrote: Oh, I remember, that was the wind before the storm. We did do one King Air that year without a prebuy, it was a special circumstance and made sense, right Jim To be fair - we sort of STARTED a prebuy. Luckiest bad decision I ever made. On the old piston planes I buy (and I think Mike's V falls in the same category) - I'm with him on saying the right buyer can skip the prebuy. You need to find the things that might turn the plane into beer cans, and everything else you live with as part of the cost of owning an old plane. You adjust your offer accordingly, and most sellers will give an oversized discount for the relief of not having a full prebuy hanging over their heads. On a plane that's near new, or being marketed as "top of the line" - I'd do the prebuy and hammer the seller on every last thing found. Don't tell me it's perfect if it's not (and no plane is.)
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Post subject: Re: Talk me into / out of a Meridian Posted: 12 Mar 2023, 20:36 |
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Joined: 05/23/13 Posts: 7995 Post Likes: +10316 Company: Jet Acquisitions Location: Franklin, TN 615-739-9091 chip@jetacq.com
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Username Protected wrote: Most jet owners cannot afford for their airplane to be down for weeks And yet you say a prebuy on V should take 4 weeks at your gold plated shops. That isn't consistent. Quote: most people who can afford to own jets can't afford to spend the time required to source their own parts. For those people willing to hire you, that's probably a true statement about them. Quote: We really don't have any choice, if you take an airplane to a small shop with no name recognition and they come up with $100k in squawks, the seller will cry foul and you'll most likely lose the opportunity to buy that airplane, when this happens the buyer loses all of the money they spent on a prebuy, plus test flights and relocation cost... not to mention time and opportunity. What are you saying here? That the small shop is doing a better job finding the problems? That the large shop magically doesn't have relocation costs or inspection expenses? That sellers would rather have a $250K squawk list from the large shop than a $100K one from the small shop? None of that makes sense to me. Mike C.
Mike,
At this point it's clear that you are just nitpiclking, trying to regain some ground here.
You also are clipping my statements in an effort to modify their meaning. I don't like that.
I said weeks / months, obviously it depends on the inspection. It does take weeks to do a Phase 1-5 on a Citation, that is fast... at a small shop that same workscope might take two months. I am referring to doing the inspection and correcting the discrepancies, so the actual time depends on the discrepancies.
"People willing to hire me" I'll put any deal my clients have made against yours.
What I am saying is that what matters is that the airplane doesn't fall out of prebuy. The shop needs to have credibility to keep this from happening. Credibility is built by the number of years in business and how good a shop is. That's why most good shops are big.
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Post subject: Re: Talk me into / out of a Meridian Posted: 12 Mar 2023, 20:39 |
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Joined: 05/23/13 Posts: 7995 Post Likes: +10316 Company: Jet Acquisitions Location: Franklin, TN 615-739-9091 chip@jetacq.com
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Username Protected wrote: I agree, but yet people still hire maintenance consultants.
How many of those maintenance consultants encourage their clients to take their airplanes to Elliott, Stevens or Textron?
So much of what you said is both untrue and not relevant to what I do that I'm not even going to respond.
My role is to explain things, not defend "big gold plated shops"
You do you dude.
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