Having just bought and sold a position I thought
I would share my thoughts on this subject.
I’m guessing but probably due to many people upgrading to the SR22 and therefore bringing deliveries of SR20s forward and the NASDAQ crashing, there seem to be quite a few positions
up for sale.
Firstly Cirrus does not seem to mind someone assigning their position to another person, the sales guys knows it goes on and will direct inquiries to this web site. I understand the sales guys are paid for deliveries in their region.
As to price there are a number of issues to consider. Cirrus originally sold a position in the production line for $15K, this gives you a right to buy the plane at a particular base price.
So when someone is selling their position they obviously want to get their deposit back. Then comes the premium earlier positions have a base price of $168K, then $179K and $188K. So you might get the opportunity to buy a position which not only is delivered earlier but also costs less than buying a new position. So sellers will ask a premium as the base price is cheaper and delivery quicker. Some sellers expect the $15K + the difference between their base price and the current base price + a premium. My advice is go elsewhere. Most deals seem to be done somewhere between $15K and current base less position base.
Other traps to watch, Cirrus charges $500 to transfer a position. The actual price of your plane is price + consumer price index since the original agreement was signed, so yes the earlier position seem to have a lower base but attract more CPI. Watch out for $168K positions, the seller may not tell you that there is a $2500 surcharge to go from Trimble to Garmin avionics.
As to doing the deal check the escrow thread -
Cirrus asks the seller to sign a transfer document and then the buyer to sign and return it to them for Cirrus authorisation. As a buyer you get a letter from Cirrus congratulating you on buying a position, a copy of the original agreement and an assignment document.
Personally both my deals worked well one with escrow and one without. Previously I tried to buy a position and the deal was I sent a check to Cirrus, they would tell the seller they had received it and then sign the authorisation form. Seller didn’t mention he had told multiple buyers the same and Cirrus were left with multiple checks. Also when selling I received numerous e-mails from people most posing as sellers but really existing position holders intrigued at what the going rate was. In all it was a simple process to sell a position.
Comments or questions
Robert