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Can you cancel an aircraft sale once it has gone to auction?
Once an aircraft has gone to auction and the winning bid has been accepted, it can be difficult to cancel the sale, however there may be some circumstances where cancellation is possible. If the buyer has misrepresented their financial ability or provided false information during the bidding process, the seller may have grounds to cancel the aircraft sale. The sale may also be cancelled if both the buyer and seller agree to cancel.
What fees do I pay to sell an aircraft at auction?
The auction house typically charges a commission fee based on the final sale price of the aircraft. Some auction houses may also charge a separate listing fee, that’s payable even if the aircraft doesn’t sell. If the aircraft is being stored in the auction house’s facilities, there may be storage fees that are applicable until the aircraft is collected by the buyer. There may also be fees for the auction house to review the aircraft’s documentation, such as maintenance records and title transfer paperwork.
Can you change your reserve price during an aircraft auction?
Generally speaking you can’t change the reserve price once an aircraft enters an auction. The reserve price is set before the auction starts and is considered the minimum price the seller is willing to accept for the aircraft. Depending on the terms of the aviation auction, some aircraft auction companies will let you withdraw the aircraft from auction if you’re unhappy with the bidding activity and believe that the current bids are significantly below the reserve price. It’s imperative you set a realistic reserve price before the auction begins as you may not always be able to change it once the auction begins.
Can I sell my aircraft at auction if the logs aren’t complete?
You can sell aircraft at auction with missing logs, however it’s important you disclose the missing or incomplete log entries to potential buyers, before the auction takes place. Failure to disclose this information could be considered material misrepresentation and may lead to legal issues. In order to increase your chances of find a buyer for your aircraft, provide as much information as you can, be transparent about the logs, consider offering them a discount for the missing logs and explore private sale options. If in doubt, get in touch with an aviation professional through AvPay’s Aircraft Broker Directory here: https://avpay.aero/directory/aircraft-brokers/
How do reserve prices work at an aircraft auction?
A reserve price at an aircraft auction is the minimum price a seller is willing to accept for the aircraft. If the highest bid during an aircraft auction doesn’t reach the reserve price, the aircraft seller can choose to withdraw the aircraft from the auction. Reserve prices are usually kept confidential and can be a strategic tool for aircraft sellers to ensure they receive a fair price, but they can also influence bidding behaviour.
How do you deliver your aircraft once it sells at auction?
You might not always need to deliver your aircraft to the seller, as they may pick it up themselves or send a ferry pilot to collect it for them. When delivering an aircraft make sure you establish clear communication with the aircraft buyer, to agree on the desired delivery location and timeframe. Make sure the aircraft is in a clean and presentable condition for delivery and complete all necessary paperwork to transfer ownership of the aircraft to the buyer.
How long does an aircraft auction usually last?
Live aircraft auctions usually last for a couple of hours, however online aircraft auctions can run for a number of days and even weeks. The aircraft auction house or aircraft auction website will usually provide information about the start and end times of the auction.
Can you bid on your own aircraft at an aircraft auction?
No, you cannot bid on your own aircraft at an aviation auction, as this would be considered fraudulent activity.
How much does it cost to sell an aircraft at auction?
Each aircraft auction company has their own commission structures. Some charge a percentage of the final sale price while others charge a flat fee. Some aircraft auction websites will charge a separate listing fee and might also charge a reserve price fee. Some auction houses offer an aircraft documentation service with associated fees. It’s important you review an auction house’s terms and conditions carefully, to understand the specific fees that apply to your aircraft sale.
What happens after my aircraft sells at auction?
Once your aircraft sells at auction, the auctioneer will contact you to confirm the sale and obtain payment details from the buyer. You will then need to provide the necessary documentation for items such as the title transfer, registration and aircraft delivery.
How can I use Escrow to sell my aircraft at auction?
Escrow can be a valuable tool when selling your aircraft at auction. Escrow is a neutral third-party service that holds the funds of an aircraft sale in trust until certain conditions are met. Conditions should be set by both buyer and seller and will usually include the delivery date and location of the aircraft, transfer of title, completion of inspections and the receipt of both documentation and funds.
How can an aircraft auction protect me against fraud?
A lot of aviation auction companies use Escrow to complete transactions more securely, as it can protect you from fraudulent aircraft buyers who may fail to pay for the aircraft upon delivery. Additionally, Escrow can help mediate disputes between you and the aircraft buyers.
Can I sell my aircraft internationally through an aircraft auction?
Many reputable aircraft auction companies and online aircraft auction platforms offer services that cater to international aircraft buyers and sellers. When selling internationally, ensure you comply with all export regulations in your country and prepare the necessary documentation for your aircraft sale, such as export certificates and customs declarations.
What are the benefits of selling my aircraft at an aircraft auction?
Many aircraft auctions can attract large number of potential aircraft buyers from all over the world. The competitive bidding environment can increase the price of your aircraft, potentially resulting in a higher selling price than you might achieve through a private aircraft sale. Aircraft can also help you complete the sale of your aircraft in a relatively short timeframe.
What are the disadvantages of selling my aircraft at an aircraft auction?
Aircraft auction companies typically charge fees or commissions based on the final sale price, which can reduce your overall profit. There’s no guarantee that your aircraft will sell at auction, or that you’ll reach your reserve price. Once listed for aircraft, you may have limited control over the bidding process and on the final sale price of your aircraft.
Who is an Aircraft Bidder?
Aircraft bidders may be private individuals, businesses such as charter operators or organisations such as aviation charities.
Do I still have to pay fees if my aircraft doesn’t sell at an aviation auction?
Some aircraft auction companies charge a flat fee for listing your aircraft, which is payable even if your aircraft doesn’t sell. If you set a reserve price that isn’t met, you may be charged a reserve fee. Additionally, you may have to pay storage fees if your aircraft remains unsold and stored at the auction company’s premises.
Can I choose which Title and Escrow Company to use when my aircraft sells through auction?
In many cases you can choose your own title and escrow company when selling your aircraft at auction. This gives you a lot more control over the transaction and lets you pick a company you trust that meets your specific needs. Some aviation auction businesses may have affiliated title and escrow companies, which can help you get a discount on these services.
Do I have to pay tax when my aircraft sells through an aviation auction?
Depending on the country you sell your aircraft within, you may be subject to Capital Gains Taxes, Sales Taxes and Property Taxes. If in doubt you should contact a tax consultant or an aircraft broker to find-out the full implications of your aircraft sale. Brokers can be contacted through AvPay’s Aircraft Broker Directory here: https://avpay.aero/directory/aircraft-brokers/
Can I sell my aircraft outside the auction, once I’ve registered?
You can sometimes sell your aircraft outside of the aviation auction, even after you have registered to accept bids. Before entering a negotiation outside of the auction, you should check to make sure you’re not breeching the terms and conditions you agreed to upon registering.
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