Tue May 01, 2007 9:04 am
The key factor to Provenance's business model is that they aim to deal only in the finest warbird restorations. Possessing the best of the best puts them in the unique position of being able to define the upper edge of the market envelope, and that's prime territory when you're looking to maximize your profit margin. If you've got the means and the vision to do it, why not? 
One thing that higher value brings to these planes is an increased concern for their well-being and preservation on the part of the investor. You can knock the "rising cost of ownership", but it really is a prime factor in securing the condition of the planes for future generations. There are plenty of historically important warbirds out there right now who's value hasn't escalated considerably, and those are still falling by the wayside and/or being scrapped (amazingly) as a result. I'll probably never be able to own a Corsair or Mustang at this point, but there is a whole new crop of "future unobtanium" out there begging for a new home, but still finding its way to the scrapper.
One thing that higher value brings to these planes is an increased concern for their well-being and preservation on the part of the investor. You can knock the "rising cost of ownership", but it really is a prime factor in securing the condition of the planes for future generations. There are plenty of historically important warbirds out there right now who's value hasn't escalated considerably, and those are still falling by the wayside and/or being scrapped (amazingly) as a result. I'll probably never be able to own a Corsair or Mustang at this point, but there is a whole new crop of "future unobtanium" out there begging for a new home, but still finding its way to the scrapper.
Tue May 01, 2007 8:20 pm
I don't think they have done anything special except benefit from incredibly good timing. The dollar has been plunging and people with a lot of liquidity (ie dollars) are looking for places to put them before their purchasing power disappears. Warbirds have proven to be exceptionally good investments so long as one doesn't actually FLY them, or does so minimally.
Secondly, the comments about supply and demand are spot on. Witness the same company's inability to get a premium price for a TF-51, which is neither unique nor rare in the way that the specific Corsair (or GG) is.
RobC
Secondly, the comments about supply and demand are spot on. Witness the same company's inability to get a premium price for a TF-51, which is neither unique nor rare in the way that the specific Corsair (or GG) is.
RobC