The accurate valuation of aircraft is an essential part of planning and executing a successful transaction when buying, selling, or leasing.
To make sure you get the best deal, it helps to understand all the key factors that determine aircraft values. This guide will provide tips and information on how to accurately value an aircraft.
1. Analyze the Plane’s Records
One of the most important steps in aircraft valuation is analyzing an aircraft’s records.
These records should provide an accurate and detailed history of the plane, including maintenance data, inspection records, upgrades that have been performed, and more.
By going through these records in detail, you’ll be able to get an accurate idea of how well-maintained the plane is and what needs to be taken into consideration when calculating its value.
2. Research Recent Models & Comparable Aircraft
When pricing your aircraft, research is key. Look for comparable models that have been bought or sold in the past and use them as guidelines for your price.
Plane prices can vary based on many factors, such as age, condition and engine type.
Look at listings of similar aircraft to get a good idea of their respective prices and use this information to determine an accurate value for yours.
Also keep an eye on trends within the aviation industry so you’re aware of any changes in pricing that might affect the value of your aircraft.
3. Account for the Switch in Role and Age of an Aircraft
The flying role of an airplane is a factor in aircraft valuation. An aircraft that has been used as a luxury jetliner on flights across the world, for instance, could be worth more than one that was used for windfarm monitoring or spraying crops.
Additionally, consider the age and condition of any aircraft you’re looking to buy, sell, or lease. Older aircraft may require more maintenance and repairs compared to newer models.
Factor this into your pricing decisions so you can understand the true value of any aircraft on the market.
4. Consider Seller Motivation & Other Factors
When assessing aircraft value it’s important to consider the reason the seller is looking to buy or lease in the first place.
This can help you better understand their motivation and whether they will be open to negotiating a price.
On top of this, consider all of the other factors that can impact an aircraft’s value such as recent maintenance and repair history, upgrades, flight time, age of aircraft, and current market trends.
All these aspects combined will determine an aircraft’s fair pricing when entering to market.
5. Find a Professional Valuation Expert
Aircraft valuation is complex, which is why it’s important to enlist the help of a professional valuation expert.
A professional can provide insights about current market trends and the best way to position your aircraft for sale or lease.
They will also negotiate pricing, offer additional features and amenities, and ensure that all the necessary paperwork is completed accurately.
Working with a professional valuation expert provides the seller with more confidence in the sales process and peace of mind that they have gotten their money’s worth.