What Factors Should You Consider Before Selling Your Airplane?

Payal Shah

What Factors Should You Consider Before Selling Your Airplane

Approximately 5,400 airplanes take to the air each day, all of them during rush hour. And as more people look to purchase their planes, this number only goes up. 

In fact, a growing number of people prefer to travel privately and avoid airports altogether. It doesn’t have to be a challenging task to buy or sell an aircraft. 

Fortunately, this suggests there is a strong market for used aircraft. So, continue reading this blog post if you want to sell your aircraft. We’ll give you the best advice on how to sell airplanes!

What Factors Should You Consider Before Selling Your Airplane

1. Choose Ideal Representation

When deciding whether to buy or sell an aircraft, it makes sense to look for a broker. 

A broker’s only job is to concentrate on selling your aircraft, keeping you informed about market conditions and valuations while utilizing industry tools and his experience to complete the sale.

The majority of the time, an aircraft owner is too busy with other tasks to devote their attention to fielding numerous inquiries concerning the particulars of the listed aircraft. 

This is just one of the many reasons it is advised to have professional representation during a laborious, intricate process like the sale of an aircraft.

An aircraft broker’s main duties include keeping your private jet in front of prospective purchasers, keeping an eye on market developments, spotting possible rival aircraft that could jeopardize the timely sale of, and controlling buyer and seller expectations to achieve the sale of the aircraft.

Most buyers, sellers, and pilots do not have access to the broker’s network, which is a special resource that can be used in an aircraft purchase or sale transaction. 

One of the most effective resources available to buying agents looking to purchase a valuable aircraft is a dependable broker within their network.

Although pilots and executives at companies can sell aircraft, it’s possible that their relationships are impeding the process and they don’t have your best interests at heart. 

They probably don’t have access to the same marketing materials, services, and software that a professional broker does on a daily basis. 

While a pilot may be in the air and a management company might have other priorities, a dedicated and experienced aircraft sales broker has the time and resources to answer questions about your aircraft. 

When buyers need answers and solutions quickly, it helps to have a full time, experienced broker assigned to your listing.

2. Calculate the Value of the Aircraft

For the majority of seasoned aircraft brokers, determining the precise value of your aircraft can be a scientific process. 

It is more difficult than figuring out your aircraft’s book value because it takes expertise, market research, and a basic grasp of both the market and the aircraft’s condition.

Always keep in mind that the market value of your aircraft determines its actual value. Even though your aircraft is a highly developed piece of equipment, its value might be similar to that of art in that it only has value if someone is willing to pay for it. 

Avoid getting too attached, discuss its worth with a broker, establish reasonable expectations for when and how much it will sell for, and be aware of any obstacles that might arise.

Aircraft typically sell for about their market value, but depending on demand or lack thereof it might take longer to sell yours.

Most of the time, including additional features to your aircraft increases its value, but depending on the circumstances, it could also turn off some potential buyers. 

An experienced broker can identify upgrades that increase the value of your aircraft or that could cause issues during the selling process.

3. Be open and honest in your communication

A lack of communication and transparency has caused countless business aviation transactions to collapse, and in certain instances, it has even resulted in unwarranted legal battles. 

Transparency and communication are essential to avoiding this heartache because buyers, sellers, and brokers all want to avoid legal disputes at all costs. Inform your broker if there have been any repairs or damages to your aircraft. 

Although a small repair might mean more to the buyer, resolving this objection at the outset will save time and increase openness for everyone.

Tell your broker what you expect from the selling process, and ask them to share their expectations with you.

Choosing whether there is a fit or mismatch in expectations before the process commencing can save both you and your broker a great deal of time. 

If you have high expectations, a good broker will let you know and a better one will explain why! Keep the broker if you can ensure that they are always communicating with your best interests in mind!

4. Receiving and Sending Funds 

You should confirm that any payment is secure and traceable before accepting it. So, avoid selling an airplane for cash. You are not protected by this method because it cannot be documented. 

Direct wire transfers to your bank account are the most convenient option. This method’s complete traceability is important.

The best alternative in the event that a bank transfer is not possible is a check. A check, however, could be falsified or returned. Thus, before closing the deal, confirm that the buyer has the necessary funds.

Finally, hire a professional to draft a closing summary once you’ve closed on an offer. Once the deal is finalized, you will be protected by this summary.

5. Requesting for a Down Payment 

Asking for a down payment is another way to protect yourself. This sum can range from five to ten percent of the total cost. However, it’s crucial to decide on this sum before finalizing any agreements.

Buyers may be con artists if they delay to give you the down payment. Scams, however, might also leave scars on some buyers. As a result, give them signed agreements and invoices.

6. Find out about Extra Services

A knowledgeable broker is skilled at establishing all aspects of the purchase and sale process. Additionally, he or she will be able to suggest lawyers, tax experts, and trust businesses that will help shield you from potential dangers. 

Additionally, they can offer marketing through a variety of media channels, which increases the number of potential buyers who can view your aircraft. 

To effectively showcase your aircraft to potential buyers, services like professional photography and aircraft cleaning can be quite beneficial. 

With each exclusive listing, most brokers provide a rudimentary degree of photo advertising and cleaning.

Most aircraft brokers are able to keep a transaction confidential or can direct you toward a discrete closing if privacy is an issue or your company has stringent PR policies.

Sell an Aircraft Now to Get Huge Profits

You are able to start closing deals now that you understand how to sell an airplane. To get the greatest negotiation, though, don’t forget to heed our safety advice.

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