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Re: I don´t understand ......

Posted by PeterA on Wed Oct 23, 2002 05:50:21 PM

In reply top I don´t understand ...... posted by Christer on Wed Oct 23, 2002 04:58:16 PM

Well to purchase an airworthy Spitfire/Mustang is a massive slug of money in one hit. The next tier down the wealth scale are those that could fund a project over say three years. There is also the under estimation factor of how much and how long it will take.
If all the principal sheet metal was completed on a Spitfire and it was sitting on its gear with the engine just resting on the bearers, wind screen and canopy just in position, it would look fabulous but you would be at the 45-50% mark. The under estimation is in the systems, the system and the systems!
As a tongue in cheek rule of thumb I usually say it will exceed cost and timing by a factor of 2.4 x the number of the initial estimate of the potential purchaser.
In the earlier years gone by these gross under estimates were salvaged by the increase in values over the build period. The plateau of values since the early 1990's does indeed mean that some parties have more money in these projects than could be realised in a sale - if that is important. For most probably not.

: ...... why someone would sell a rebuilt warbird at a price
: lower than the actual cost?
:
: Does the owner forget about maths in the process or what?
:
: Please, enlighten me!
:
: Christer

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