While there has been tremendous growth in private aviation over the last two decades, economic downturns affect the value of all assets at some point to some degree. For example, the pandemic years of 2020 to 2022 saw a marked decline in demand for both new and pre-owned aircraft. As a result, prices for used aircraft took a dive and orders for new planes were reduced to a crawl. However, the following year prices came back up, and many companies experienced an order backlog for new planes. Because market conditions are always in a state of flux, and it is important to know how to approach a sale in any market, here are 10 professional tips for successfully selling your aircraft:
1) Be the Buyer
Put yourself in the buyer’s role and be honest with yourself about how nice your plane really is. In order to sell your plane quickly and get top dollar, a prospective buyer must see your plane as a good deal. Remember the old saying, you never get a second chance to make a first impression.
2) Survey
Go over the aircraft with a fine-tooth comb and make a note of every single thing, no matter how small, associated with your plane that needs attention. While the big things, like a malfunctioning door handle, will be obvious, the little things, like a burned-out marker light, make just as big a difference. Also, go over your maintenance records and log books to be sure both are accurate and up to date.
3) Preparation
Past fixing any mechanical issues, if you are expecting top dollar, you will have to go the extra mile and have the plane professionally detailed. A buyer who sees the exterior and cabin of a plane has been neglected will assume the plane has not been properly mechanically maintained either. On the other hand, you can’t make a silk purse out of a sow’s ear and an experienced buyer will see right past a quick spit shine.
4) Limit Liability
There are some risks associated with selling an airplane and your potential liability does not end with the transfer of ownership. Even if it is something you had no prior knowledge of, if a part fails after the sale, the buyer may try to hold you to account. Insist the buyer has a professional inspection done even if you have to lower the price to make the sale work.
5) Paperwork
Check that you have all the ownership paperwork in order, both for the buyer’s inspection and for the transfer process. This includes logbooks, the registration certificate and bills of sale.
6) Consult Professionals
Many planes cost more than some houses, and it is a good idea not to try to cheap out by skipping professional services. Qualified attorneys, brokers and listing services like those provided by Stratos Jet Charters make transactions smoother and less risky for all parties.
7) Setting the Price
Consult an experienced broker or perform solid research if you plan to sell the plane on your own, so you don’t set the price too high or too low.
8) Beware the Fraudsters
Con artists are always a risk when buying or selling high-dollar items. Do at least a cursory background check on your buyer, ask for ID and confirm the test pilot is adequately certified.
9) Be Transparent
Countless deals fall through because one party wasn’t upfront about something and lost the trust of the other. Let all parties know upfront that a lack of complete transparency is an absolute deal breaker.
10) Secure Your Funds
While paying cash for an airplane is not unheard of, bank transfers and cashier checks are the norms for large transactions. Be sure to confirm with your bank that a check is valid and the funds from a transfer are safely in your account before letting the plane out of your sight.
Summary
The saying, “the two happiest days in a boat owner’s life are the day the boat is bought and the day the boat is sold” also applies to aircraft owners. Selling a plane is a big deal, literally and figuratively, so it should not be taken lightly. Follow these 10 steps to avoid common pitfalls and have a smooth transaction.