Top Tips for Selling Your Aircraft

Characteristically, you will find that there are two types of aircraft owners – the aviation enthusiast and the person who only owns an aircraft that serves a purpose. The latter has no emotional connection to the aircraft they own and the aircraft is simply seen as a mode of transport. Getting from point A to B in a relatively short time, without much hassle. The aviation enthusiast however still reminisces over the first time he or she held the key to their first aircraft – the smell and felling of euphoria. Whether the decision to sell your aircraft is financially driven or whether an upgrade is being considered, there are a few things to keep in mind. In this article we will be focussing on the sales process and hopefully provide you with some useful advice on the most frequently pondered questions.

Do I have to enlist an aircraft sales broker? Why not sell it myself?

It would be a sensible decision to appoint a broker to sell your aircraft on your behalf. Not only do they have the expertise, knowledge of the market, access to industry tools and ability to deal with the paperwork, they are typically motivated to sell your aircraft as quickly as they possibly can. Dealers and brokers also have a vast network that they utilise to promulgate information of aircraft for sale. One of the many reasons it is recommended to acquire professional representation is to reduce the time consuming and intricate process of selling your aircraft. Another reason to sell through an aircraft broker is that their experience usually enables them to reply quickly to aircraft sales enquiries and to solve issues that crop-up in the aircraft sales process relatively easily. If you opt to go at it on your own, there are a lot of risks that need to be considered. There is an abundance of social media platforms that you can make use of to advertise your aircraft yourself. Just be aware of scammers and posers. Do some research on the sale of aircraft similar to the one you are aiming to sell.

How do I determine whether my asking price is in the ballpark?

In aviation common reference is made to the Blue Book when an aircraft is to be evaluated. Establishing a true evaluation of your aircraft is more complicated than just “running a book value”. It involves much more than that. Determining the right asking price for your aircraft requires knowledge of aircraft, market conditions and is dependant on the actual condition of the aircraft being brought to market. Bear in mind that anything is only worth what someone else is prepared to pay for it. Skilled and established brokers are able to determine whether your aircraft is more attractive than others on the market. They can also determine which factors might pose potential problems during the sales process. If your aircraft has suffered any damage, it is wise to disclose this information and the extent of the damage beforehand. This might reduce the value of your aircraft, but that does not mean that your aircraft is not sellable!

How do I go about listing my aircraft myself?

Brokers normally have extensive ways to market your aircraft on your behalf, through their network, website subscriptions, social media platforms and printed media. Should you opt not to make use of the services of a broker and choose to advertise your aircraft yourself, the best solution would be to list your aircraft online. There are various popular websites and social media options available. There is a downside in attempting to sell your aircraft yourself, however. You need to make sure that you understand the process of closing a deal and the paperwork involved. Understanding the process of signing the bill of sale, change of ownership, transfer of radio licences, etc. is beneficial when selling your own aircraft “out of hand”. Make sure that you have good quality images of your aircraft. Ensure that your aircraft is clean, that there aren’t any shadows on the images and that the lighting serves justice to your aircraft. Think of the images as portfolio pictures. What you see is what you get! The best time to take photographs of your aircraft is at noon when the sun is perfectly lined up with the Earth. Preferably there should be no obstructions in the background of the image such as other people’s legs, rubbish bins, clutter and so forth.

How long will it take to sell my aircraft?

Typically, the sale of an aircraft takes between 90 – 120 days, however it can take months or even years, depending on the type of aircraft you are selling. For example, one company we know had a 1975 high-time Learjet on the market for nearly four years before it was sold! Brokers have better success rates at selling aircraft, due to their established network, social media platforms and website subscriptions. An individual attempting to sell their aircraft will have a far lower success rate, though it is not impossible. A lot of patience is required before a deal is concluded! Also, prepare yourself to entertain what we call “Whistling Go-For’s” and “Tyre-Kickers” that may end up wasting a lot of your time.

When do I know my aircraft is actually sold?

Beware not to get too excited about a potential close on the sale of your aircraft. Fraudsters are a reality and it is imperative that you look for any indications of fraud throughout the transaction. Never accept “Proof of Payment” just on face value. A deal is not a deal until the money is in the bank. Even then the deal might go sour! Ensure that every detail is thoroughly documented and that you are legally protected.

What costs should I expect to be responsible for?

Obviously, the owner of the aircraft will be responsible for all mandatory outstanding maintenance issues required to keep or bring the aircraft into airworthy condition. The seller is also expected to cover the costs of relocating the aircraft to the pre-purchase inspection facility (of the buyer’s choice) at his own cost. When using a broker, mostly the seller and the buyer contribute to the sales commission. Commonly, the buyer is responsible for the Escrow cost, radio licence transfer, registration costs of the aircraft and export fees.

What is a Bill of Sale and why do I need it?

This document is very important. Only once the buyer has received confirmation from the bank, Escrow agent or the dealership that the total amount asked for the aircraft has been received, should the Bill of Sale be signed by the seller. The price paid for the aircraft should be reflected clearly on the Bill of Sale. Once the Bill of Sale is signed the actual transfer of ownership occurs. Normally there are two copies issued, as both the buyer and seller are required to keep a copy for their own records. When completing the Bill of Sale, ensure that both the buyer’s and the seller’s names are depicted clearly on the documents to avoid any possible confusion.

Do I still have to insure the aircraft once the new owner takes ownership?

Once the bill of sale is signed and transfer of ownership is confirmed it is your responsibility as the seller to notify your insurer to cancel your cover.  The purchaser would have to initiate a policy as the new owner of the aircraft. ARC Aviation could prove vital regarding insurance queries.

What about the registration change of the aircraft?

Normally the broker dealing with the sale of your aircraft will take care of registering the aircraft with the new owner. If you sold your aircraft privately you may find the de-registration process a little daunting, since the paperwork involved can be quite overwhelming. The amount of work involved varies depending on which country’s aviation authority you’re dealing with. There are various organisations that can assist you with registering and de-registering aircraft.

Moving on – What to do?

Now that the sale of your aircraft has been concluded you have to ask yourself, “What do I do next?” Browse other Aircraft Sales Articles on the AvPay News Page, for other helpful hints and tips.

Disclaimer: this article was written by an author that has over 20 years of experience in the aviation industry. This article does not reflect the opinion of AvPay in any form whatsoever. The information contained in this publicised matter is believed to be dependable