5 Takeaways That I Learned About Valuation

Things You Should Understand about Aircraft Appraisal

Maybe you own an aircraft but did you know that you should have an aircraft appraisal? An aircraft appraisal is important for various reasons such as insurance, loan refinancing and establishing the value of your plane before selling it. Not anybody can do aircraft appraisal but certified aircraft appraisers. An aircraft appraiser considers several factors during the valuation process and tables a report about the aircraft’s value as at that time. This is an official report which states the value of the aircraft. People can have different opinions about the value of an aircraft, but the most reliable view is the one from an independent certified aircraft appraiser.

Perhaps you could be wondering why it is necessary to have an aircraft appraisal. If you are buying a plane, then you will need to have insurance for it. It is impossible to have aircraft insurance without knowing the value of the aircraft. If you want to buy a plane, remember that the selling price is not always the value of the aircraft. If you had a loan and now the interest rates have dropped, and you are considering loan refinancing. Your lender will request to know the current status of the plane and its value before issuing a new loan, and that calls for aircraft appraisal. On the internet, you can find estimates of the value of your plane, but they are not reliable. Planes can be identical but their values might not be the same, and thus, it is advisable to find a reputable aircraft appraiser to determine your plane’s worth.

Are you aware of the factors that influence the value of your aircraft? Even if two planes are bought at the same time, their value will be different afterward because of how their owners handle them. This article outlines the essential considerations for determining an aircraft’s value.

Engine hours – How frequently do you use your aircraft? What length of time does it take between engine maintenance? If you schedule regular engine maintenance, then that can have a positive impact on the value of the plane. If your plane regularly flies with long engine hours, then its value can be low. Schedule your aircraft appraisal immediately after maintenance and not before maintenance service.

Damages – How do you handle damages to the aircraft? A plane that has lots of damages such as dents and missing parts is likely to have a low value. Immediately you notice any slight damages, schedule repairs so that your plane maintains a perfect appearance.

Interior wear – Your aircraft appraiser will pay attention to the interior section of the plane. He will be keen on the state of the lavatory, lighting, color schemes, safety measures, seats, and floors. Make sure that the interior of the plane is well-kept at all times.

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