commissioning a restoration

[Stephan Wilkinson]

Not counting the warbird restorations underway by largely volunteer groups--museums, CAF squadrons, etc.--there are a number of expensive restorations currently underway by individual restorers and by commercial restoration shops. Are these typically done at the expense of the restorer (which seems pretty extreme unless these people are millionaires), or are restorers hired by syndicates, or by wealthy warbird collectors, in order to do the restoration on a cost-plus-fee basis? Or do the restorers do it individually, at their own expense, in the expectation of getting their money back when they sell the aircraft immediately after its restoration is complete? What is the typical arrangement?

[Tim Savage]

Aircraft being restored in commercial restoration shops are almost all without question being done for outside owners. Usually on an hourly labor rate plus parts costs, etc.

It would be a big gamble for a commercial shop to restore an airplane 'on spec' with the thought of selling it for a profit afterwards. It is almost universally true that you can buy a finished airplane cheaper than you can restore one these days. The advantage of restoring one is that you get exactly what you want...but you will generally be disappointed if you think you are going to make a profit.

[ErrolC]

I would not be surprised if restoration shops take title to projects as security on occasion. If they do, they will be required to sell it back on appropriate payment. Restoration shops have certainly appeared on national aircraft registers, which show only part of the potentially many aspects of ownership.

[Kyleb]

Aircraft being restored in commercial restoration shops are almost all without question being done for outside owners. Usually on an hourly labor rate plus parts costs, etc.

It would be a big gamble for a commercial shop to restore an airplane 'on spec' with the thought of selling it for a profit afterwards. It is almost universally true that you can buy a finished airplane cheaper than you can restore one these days. The advantage of restoring one is that you get exactly what you want...but you will generally be disappointed if you think you are going to make a profit.

Isn't Reilly's P-82 a spec airplane? I'm pretty sure it has a buyer now, but once upon a time I thought he was looking for investors.

[Tim Savage]

Aircraft being restored in commercial restoration shops are almost all without question being done for outside owners. Usually on an hourly labor rate plus parts costs, etc.

It would be a big gamble for a commercial shop to restore an airplane 'on spec' with the thought of selling it for a profit afterwards. It is almost universally true that you can buy a finished airplane cheaper than you can restore one these days. The advantage of restoring one is that you get exactly what you want...but you will generally be disappointed if you think you are going to make a profit.

Isn't Reilly's P-82 a spec airplane? I'm pretty sure it has a buyer now, but once upon a time I thought he was looking for investors.

Note I said 'almost universally true'. An extremely rare AND sought after airplane may be different. Note again, I said rare AND sought after, as rarity generally has nothing to do with values in the warbird community unless it is a sought after type...

[Speeddemon651]

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Last edited by Speeddemon651 on Fri Oct 28, 2016 11:17 am, edited 1 time in total.

[Speeddemon651]

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Last edited by Speeddemon651 on Fri Oct 28, 2016 11:19 am, edited 1 time in total.

[Speeddemon651]

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Last edited by Speeddemon651 on Fri Oct 28, 2016 11:19 am, edited 1 time in total.

[Speeddemon651]

I would not be surprised if restoration shops take title to projects as security on occasion. If they do, they will be required to sell it back on appropriate payment. Restoration shops have certainly appeared on national aircraft registers, which show only part of the potentially many aspects of ownership.

I'm not exactly sure on the arrangement but Cal Pacific Airmotive seems to typically take over ownership/registration of the mustangs they restore. I asked them once about that once and their response was that the various registered P-51 under their name belong to it's customers who are in line for restorations.

[airnutz]

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Yepper, it's Freaky Friday again...the WIX is slow. Once you post a reply you have to be patient for it to go thru submit. If you don't think it is working and press submit again it will post your message as many times as you pressed submit. Also after being logged-in all week etc., every Friday lately it knocks you off and you have to re-log in.