Aircraft For Sale - Step 2 and Step 3 of the Guide

Aircraft for Sale: Buyers Guide Step 2: Get Pre-Qualified for Financing

Too many pilots search for the perfect airplane, and then have it sold out from under them while they are making their financial arrangements. You don't want your dream plane to be owned by someone else!

We recommend you get pre-qualified right now! There are many aircraft lenders that can pre-approve you over the phone in as little as fifteen minutes, or you can apply online. Once you have been pre-approved, you are under no obligation to use the loan; it will just be there for you if and when you need it.

Most lenders require a minimum of 10% down with a 10-20 year loan. These aircraft lenders offer a low monthly payment with outstanding repayment terms. Some offer additional pilot incentives as well.

Aircraft for Sale: Buyers Guide Step 3: Shop Around

Knowing how similar aircraft have been priced can be very helpful in determining if the price of a specific aircraft seems fair. Remember, each aircraft is different so you will have to consider all the variables when making your comparison, keeping in mind those factors that are most important to you.

Factors that Effect Price

Engine Time: Engines have a limited life expectancy or TBO (Time Before Overhaul). This number is based on when the average engine needs to be overhauled. If you purchase a plane that has 1500 hours on an engine with a 2000 TBO, you will have approximately 500 hours before you need to overhaul the engine. You will probably want to start saving for the occasion or if you plan on selling before that happens, you should know it may be a little harder to sell your plane as it approaches TBO. If you purchase a plane that has 1150 hours on an engine with a 1200 TBO, however, you should make sure you already have enough money to perform an overhaul.

Exterior Condition: Painting an aircraft is very time consuming and can be quite costly so an aircraft in above average condition is worth several thousand dollars more than one that requires paint. Corrosion is another thing to consider. Many airplanes have it, especially if they come from humid areas near salt water. It can often be treated, but depending on the severity, it does reduce the value of the plane. It is always a good idea to get a mechanics opinion on this matter.

Interior Condition: Like painting, refurbishing the interior also requires a fair amount of time and money. Seat covers can always help extend the life of an interior, but a new interior adds a few to several thousand dollars depending on the number of seats.

Avionics: Radios play a major role in determining the value of the aircraft, adding more than $20,000.00 in some cases. Aircraft Blue Book has a formula for calculating this value. Vref also has a system for considering avionics upgrades. A qualified aircraft broker can help you put these figures into perspective.

Options/Modifications: Many aircraft for sale have after market modifications that enhance the beauty or performance of the plane. It is important that these mods all have the proper FAA paperwork and log book endorsements. Some mods increase the value of the plane, while others improve the marketability.

Location: Don't forget to consider the aircraft's location when determining value. You should figure in the cost involved in getting to the aircraft as well as what it will take to bring it home.

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