Aircraft for Auction

Aircraft auctions offer the market a quick and convenient means of buying and selling aircraft. The process usually starts with an aircraft seller submitting their aircraft for auction. The aircraft’s condition will be inspected, before a market analysis is completed to calculate a suitable reserve price. When present the aircraft’s paperwork will be inspected, which covers items such as logbooks, airworthiness certificates, airworthiness directives and the maintenance history. It’ll then be listed on the auction platform along with aircraft sales platforms, such as AvPay, to let the market know the aircraft will be coming-up for auction. A bidding period can last as long as 7-30 days, to allow enough buyers to submit their offers. Once the reserve has been met, the highest bidder wins the auction. Escrow is often used for the transfer of funds, as it ensures a smoother and safer transaction.

A lot of general aviation aircraft are sold at auction, which includes single engine piston aircraft, multi engine piston aircraft and piston helicopters. Governments throughout the world often use aviation auctions to sell their surplus military aircraft, which includes both fixed wing and rotary. The types of aircraft available at a particular aviation auction will vary depending on the auctioneer, location and overall market conditions.

Once an aircraft auction ends the aviation auctioneer will usually contact the winning aircraft bidder to confirm the purchase and arrange payment. Payments on larger amounts is usually processed through Escrow, to ensure a secure transaction. The winning bidder will have to pay the purchase price in full within a specified timeframe, which is usually indicated in the terms and conditions before the aircraft auction starts.

The Aircraft Auction Consignor will contact you to confirm the purchase and arrange payment. They may also be able to help you with the title transfer and registration of the aircraft, as well as organising the collection of ferrying of your aircraft to your desired location.

Many aircraft auction houses and online aircraft auction platforms will let you bid on international aircraft for sale, however it will vary depending on the aviation auction company. Before the aviation auction you’ll need to make yourself aware of any import and export restrictions in both your own country and the country you’re buying the aircraft from, as this may involve obtaining permits or licenses. Be prepared for currency fluctuations as well as international transaction fees, so that you don’t go over your budget. You’ll also need to cost-in aircraft ferrying, which will be more expensive if the aircraft is parked at a remote location.

The aircraft auctioneer or their representative will usually contact you directly to inform you of your approval status. When using online aviation auction platforms, approvals will usually be sent via email. In physical aircraft auctions you may need to register in person on the day of the aircraft auction. You’ll then be given a bidding number. If the auction is fast approaching and you haven’t received any updates on your approval status, it’s best to contact the aviation auction company for confirmation, before the aircraft auction commences.

You can usually contact the aircraft seller, once your winning bid has been accepted. Even if you didn’t win the bid, you may still be able to negotiate on a sale, if the current winning bidder isn’t able to go ahead with the aircraft purchase. In cases where the seller is already transacting with the winning aircraft bidder, it’s important to be respectful and understand that they might not wish to correspond with you.

Live aircraft auctions usually last for a couple of hours, while online aircraft auctions can last for a number of days or weeks. The quantity of aircraft for sale and the interest in the auction items can also influence how quickly bidding begins on each aircraft. The aviation auction website will typically provide information about the start and end times of the aircraft auction. If attending an aircraft auction in person, you can also ask the auctioneer or staff for advice on how long the aircraft auction will last.

Pre-auction research is of vital importance when buying an aircraft. Make sure you review the aircraft’s documents and consult an expert whenever you have doubts. Aircraft Brokers can be contacted for advice through AvPay’s Aircraft Broker Directory. Where possible you should visually inspect or arrange for an industry professional to visually inspect the aircraft before you start bidding on it. If being sold in an airworthy condition, you may also be able to arrange a test flight before the auction takes place. All of this information can help you set your budget when bidding on the aircraft for sale.

Determining an aircraft’s reserve price at auction can sometimes be difficult, as aircraft consignors are not often obliged to disclose this information. Nevertheless, you can get an idea of the sort of price you can expect to pay for an aircraft for sale at auction, by conducting thorough market research on the asking and sold prices of similar aircraft listings, using resources such as AvPay’s Aircraft Listings Page.

The registration process for bidding on an aircraft for sale at auction can vary depending on the aviation auction house or platform. First and foremost, you should look for reputable auction houses that specialise in aviation. If you’re bidding on an aircraft sales auction platform, you’ll typically need to create an online account which will involve providing personal information, contact details and most likely information on how you’re going to pay when you win an auction bid to purchase an aircraft. Some aircraft auction companies will require you to submit documentation to verify your identity and source of funds, as part of their anti-money laundering efforts. Once you have completed the necessary steps, the aviation auction company will review your application and let you know when you have been registered to bid on aircraft for sale at auction.

You can sometimes buy an aircraft at auction, even if the aircraft listed for sale hasn’t reached its reserve price. This is fully dependant on the aircraft seller being willing to negotiate on an aircraft sales price.

In most cases you won’t be able to cancel a winning bid at an aircraft sales auction, once it has been accepted. Once you have been declared the highest bidder and the aircraft sale has been confirmed, you are usually legally bound to purchase the aircraft. There are exceptions to this rule however – if the aircraft seller has misrepresented the information about the aircraft listed for sale, you may have grounds to cancel your bid.

When buying an aircraft at auction you may incur fees in addition to the aircraft’s purchase price. An aircraft buyer’s premium is a fee charged by auction houses as a percentage of the final sale price, which helps cover the costs of running the auction. Aircraft sales tax may also be applicable, depending on the location of the sale. Aircraft registration fees will be due to the aviation authority of the country in wish you’ll operate the aircraft and you may also need to pay a ferry pilot to relocate the aircraft to your home airfield.

Purchasing an aircraft at auction can be safe, however it requires careful consideration and due diligence. You can increase your chances of buying a safe and reliable aircraft by carrying-out a thorough inspection, researching the aircraft’s history, setting a sensible budget, understanding the terms and conditions of the sale and consulting aviation professionals whenever in doubt about the aircraft listed for sale at auction. Aircraft Brokers can be contacted through AvPay’s Broker Directory.