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| Economic Time for Acquisition? https://www.rypn.org/forums/viewtopic.php?f=1&t=6795 |
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| Author: | Superheater [ Mon Sep 01, 2003 8:55 pm ] |
| Post subject: | Economic Time for Acquisition? |
An article in the June 2003 Railway Age "Betting the Farm on a Dune of Shifting Sand", page 46 claims that 25 year old SD-40-2's are being cut up due to the massive changeover by the UP to standardize around the SD-70M. The article maintains this is generally the case for only for 6-axle units too big to find a home on smaller roads with less manicured roadbeds, unfortunately. In either case, I guess the question is: Is it a time to buy on the cheap (ok, less expensive) OR is that likely to exacerbate the unfocused, infeasible collection issues we discuss here? Maybe some roads/lessors would take a charitable donation letter and good publicity instead of scrap prices? Superheater@rrmail.com |
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| Author: | Erik Ledbetter [ Mon Sep 01, 2003 9:36 pm ] |
| Post subject: | Re: Economic Time for Acquisition? |
> An article in the June 2003 Railway Age > "Betting the Farm on a Dune of Shifting > Sand", page 46 claims that 25 year old > SD-40-2's are being cut up due to the > massive changeover by the UP to standardize > around the SD-70M. Judging from the article "One Railroad's Junk is Another Man's Treasure" in the October issue of Trains, it sounds like the only UP SD-40-2s that are getting cut up are total basket cases; anything even moderately runnable is being snapped up by buyers in the shortline power and lease fleet market. To be sure, SD-40s are now more affordable for preservationists--but the better ones sell for a lot more than scrap value. eledbetter@rypn.org |
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| Author: | Alex Huff [ Mon Sep 01, 2003 10:47 pm ] |
| Post subject: | Re: Economic Time for Acquisition? |
Operational (or nearly so) SD40-2's have sold at absolute auction on UP in the $20-25,000 range. These are high mileage units. I am aware of an ex-SP B30-7 which sold at auction for less than $9,000, a couple of thousand was required to put it back into service. dsrc512@sd.value.net |
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| Author: | Rob Davis [ Tue Sep 02, 2003 9:51 am ] |
| Post subject: | Excellent Point |
Super, Looking at prices from recent private, CN and UP auctions, SD basket cases are going for up to $7K. Operable 45's are in the $16K range. 40's can be anywhere from there on up since they have better rebuild potential. GE's can be had much cheaper. You won't find many four-axle bargains, but if you are looking for an SD, the time has never been better. And, yes, the standardization we are seeing on GE Dash-9's and SD70's points to a coming flood of older SD's, so you might see the market drop more, especially for the remaining in-service 45's. Rob rdavis@rypn.org |
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| Author: | Gerald W. Kopiasz [ Tue Sep 02, 2003 2:57 pm ] |
| Post subject: | Re: Excellent Point |
In Council Bluffs, the UP has the following stored: SD40-2 (B units and no dynamics), tunnel motors, 4 axel GEs, SD45, and a C30-7 or two. If this is a microcosm of the other engine terminals, there's a lot of locomotives that will be coming available. Acquiring a basket case wouldn't be a bad idea for museums looking for a static display. Now's the time to buy. We even had eight newly painted GE Dash 7's in the yard waiting to go to South America. Gerald W. Kopiasz > Super, > Looking at prices from recent private, CN > and UP auctions, SD basket cases are going > for up to $7K. Operable 45's are in the $16K > range. 40's can be anywhere from there on up > since they have better rebuild potential. > GE's can be had much cheaper. > You won't find many four-axle bargains, but > if you are looking for an SD, the time has > never been better. > And, yes, the standardization we are seeing > on GE Dash-9's and SD70's points to a coming > flood of older SD's, so you might see the > market drop more, especially for the > remaining in-service 45's. > Rob hrrhs@aol.com |
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| Author: | Alan Maples [ Tue Sep 02, 2003 7:58 pm ] |
| Post subject: | Re: Economic Time for Acquisition? |
> In either case, I guess the question is: Is > it a time to buy on the cheap (ok, less > expensive) OR is that likely to exacerbate > the unfocused, infeasible collection issues > we discuss here? Another approach to this is to look at the opportunity to buy parts when the market is down to repair/restore/upgrade locomotives already in collections. About a year ago I purchased a complete locomotive cab off of an SD-40-something at a very reasonable price. Except for the air brake equipment, everything was there. I salvaged some of the cab, electrical switch gear and control stand for a switcher rebuild project. At the time it occurred to me that this would be a good opportunity for a museum that wanted to set up a display cab or simulator so visitors could experience being in the engineer's seat without having to climb on a locomotive. Alan Maples AMaples@aol.com |
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| Author: | ge13031 [ Tue Sep 02, 2003 8:55 pm ] |
| Post subject: | Re: Economics |
> Another approach to this is to look at the > opportunity to buy parts when the market is > down to repair/restore/upgrade locomotives > already in collections. > Alan Maples If all you are looking for is a static cosmetic display you should be able to part one of these babies out and at least get your money back, if not a little bit more ??? lamontdc@adelphia.net |
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