Posted on: 7 March 2019
If you have inherited one or you are purchasing one for your own needs or as an investment, understanding the value of a used aircraft is important for many reasons. Of course, an aircraft appraisal is much different from a jewelry or real estate appraisal. While they focus on the metals and square footage, an aircraft appraisal focuses on many other elements. Here are a few factors that will influence the value of a used aircraft.
The number of hours used on the engine will be one of the most important factors that affect the aircraft's price. Obviously, the more hours on the engine, the less valuable it will be. However, just because there are more hours than preferred on an aircraft does not mean it is not a good value.
For example, the appraiser will state the aircraft is more valuable if there are maintenance logs, which prove that the aircraft is in great condition and maintained well if there are maintenance records available.
The number of hours on the engine are not the only factor that determine an aircraft's value. An appraisal will also determine value based on the number of hours on the actual aircraft's frame. Remember that the more time the frame is in the air, the more stress is placed on the aircraft, affecting its value over time.
For every hour an aircraft's frame is in motion, it loses some value. The total amount of value lost depends on the actual aircraft's model. If more hours are placed on a specific frame than its fleet's average number of hours, value will be lower than if there were less hours placed on the frame than the fleet's average.
The type of equipment installed in the aircraft will also affect its value. For example, certain upgrades and equipment features are more valuable than others.
Outdated technology, such as old AC systems and deicing features, can negatively affect an aircraft's value. Newer avionics and data systems will increase the value of the aircraft, since buyers will be more interested in buying updated models for safety and ease of flying.
While hours and equipment are most important, the overall condition of the aircraft's interior is also a factor that influences value.
The interior should be clean and in good condition. Seats should not have any tears or stains. Paint should be even and vibrant. Also, the color scheme should be attractive and modern to ensure the aircraft's value.
Contact a company, like Killingsworth Aircraft Valuation Services, LLC, for more help.Share