REFLECTOR: How much for a new engine?

[Scott Baker via Reflector]

On 1/6/2015 10:32 AM, Luciano, Luis I CIV PEOSUB, PMS404P via Reflector 
wrote:
> Dear Collective,
>
> I've been diligently saving my pennies for the day I can buy an engine.  Although I'm not there yet, the time is getting closer - to the point that I've been making calls to establish baseline prices.  With that in mind, I recently contacted Mistral and received an interesting quote (bordering on insulting) for their experimental (not yet certified) 300Hp NA rotary engine.
>
> Upon seeing theirs and other's #s, I became curious to know what the realistic price point would be for a factory new engine from the demand side.  So, my question to the collective is, how much would you be willing to spend on a factory new a/c engine (ie regardless of brand).  I know that the first impulse is to say "as little as possible" but I'd appreciate your opinion on what you would personally consider a "fair market price".  To make the $$$ standard, think FWF complete (w/o propeller or mount but include accessories) and 300Hp.
>
> If you already have your windmill, I would also appreciate to know how much you put down, whether it was a new or mid-time engine, what Hp, and year of purchase to calibrate for inflation.  My purpose is to get a sense of the market, hopefully give me some negotiating ammo, and foremost to foster a group discussion.
>
> Thanks in advance for your time!
>
> With Regards,
> Luis Luciano
> Velocity XL-5 "Dulcinea"
>
>
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Luis,
Great questions!
Those who have not shopped recently for aircraft engines are certainly 
in for "sticker shock" - as the cost of new Lycoming and Continental 
engines in the 260 to 315HP range now run from the high $40's to $65K.
I matters little what consumers "think" should be a fair price.  The 
price is the price.  There are very few options on how to finagle a 
major discount on a new engine.    When considering new - look into the 
experimental Thunderbolt line of engines from Lycoming.  The design is 
essentially identical to 'certified' engines, at a reduced cost.  Taking 
the mechanical reliability risks of purchasing a used engine to heart, 
this route can certainly save money compared to purchasing a new 
engine.  I've often though how sweet it would be to locate a salvaged 
engine from an aircraft that was insurance "totaled" due to hail or a 
wind storm (i.e. no prop strike).  Second to that would be to find a run 
out engine (core) for next to nothing, and have a reputable engine shop 
perform a major overhaul with factory new power assemblies and 
accessories.  The mechanical reliability of such an engine would be (to 
me) equal to a factory new engine.  The cost would be less than a 
factory new, but so would the resale value.
If you are like me, feeling "warm and fuzzy" about the mechanical 
reliability of your aircraft engine rates the highest marks.  Pay 
whatever is needed to feel "warm and fuzzy".  Those who skimp and only 
look at the price of the engine - in my opinion are "cruising for a 
bruising" from the standpoint more than normal breakdowns and mechanical 
fix-it costs.  There is a saying in the engine purchase and overhaul 
business ... "you get what you pay for".
Excuse the wordy reply.  A more direct answer to your question ... get 
ready to pay in the high 30's for an overhauled 260HP Lycoming; mid-40's 
for an overhauled 300HP Lycoming or 315HP Continental; low $50's for a 
new $260HP Lycoming; high-50's to low-60's for new 310HP Continental or 
300 to 315HP Lycoming.
Very Best,
Scott B.
So ... how's the wind chill in Chicago today?

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