Buying a Private Jet? Private Jet for Sale?
If you are buying a jet airplane or have a private jet for purchase, this is a huge decision involving tons of dollars and you wouldn't make that form of a decision in any other business without all the information. We're gong to show you today how you can have the all the information to make the right decision.
Am I paying the right price for a pre-owned jet? Just how much is my jet worth?
We're visiting to look at four common methods used to value aircraft.
Valuation Method # 1: Trade Magazines.
Yes ... even corporate buyers take a peek at the trades to get relative pricing information.
There is nothing to stop an uninformed or unmotivated seller from asking $2.5 million for private jets for sale - informative post, an aircraft the current market place is valuing at $1.2 million.
... and the other thing you don't know is how long that overpriced aircraft has been on the current market.
Don't confuse asking price with market price!
Valuation Method # 2: Aircraft Bluebook
Paid service-- online or paperback. Somewhat inexpensive and widely used. Not a fan of how data is collected for this publication. Often tends to push everything to average. Might be okay if you are valuing an 'average' aircraft! My advice-- use as a guideline only!
Valuation Method # 3: Aircraft Brokers/Agents
High-volume, specializes in your make and model = should know the marketplace.
Low-volume, sells 'whatever walks in the door' = may not be as in on with the current market conditions of your specific turbine aircraft
The better question may be: are they unbiased about the market place for the aircraft they're trying to sell you?
Let's follow the money. Brokers are paid by sellers, and usually on a contingent basis, the higher the selling price the higher the commission.
Does this make them crooks? Does it give the potential for bias as it comes to the aircraft they are representing?
Valuation Method # 4: Certified Aircraft Appraiser
Why hire an appraiser? Because they are; 1) Independent to your transaction-- not selling ... not buying-- they are serving YOU! 2) Trained and certified by National Aircraft Appraisers Association. 3) Trained to USPAP standards-- Uniform Standards of Professional Appraisal Practice. Your assurance of an independent, high-quality valuation to ethical appraisal standards.
Shouldn't you be using a certified, independent appraiser for your aircraft purchase or sales transaction?
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