In our last post we talked about the importance of knowing more about the NAAA. In this post we will talk more about the finer details of what is involved in an aircraft appraisal. Read carefully, as the more you know, the more you will hold the value of your aircraft. A key factor is aircraft engine maintenance. If you ever need these services, feel free to come see us at our fly-in hangar! Happy Flying!
The appraisal process is not a short process.
Your NAAA appraiser may spend a relatively short period of time going over your plane. But that is only the tip if the iceberg. Once the data has been collected by physical examination of the aircraft, research into the various parts that make up the aircraft are evaluated. The finished appraisal provides the reader with:
- Detailed examination of the airframe, engines, props, instrumentation, avionics and all relative systems.
- Careful review of aircraft documentation, log books, and associated records.
- Computer analysis of relevant value data.
- A sealed Certificate of Appraisal and detailed computerized report submitted to the client.
The purpose of an appraisal can be for the following reasons:
- To gain a professional opinion of the present fair market value of an aircraft.
- For obtaining a professional opinion of the value of an aircraft that is to be renovated or modified.
- As a prudent safeguard against excessive tax assessments, capital gains and other taxes.
- Verifying damage claims resulting from fire, hail, windstorms, accidents and other disasters.
- As the basis for decision-making in the commitment of funds for aircraft acquisition.
- To provide persuasive, independent evidence of the condition of an aircraft.
- Assisting a prospective purchaser in obtaining financing or insurance, making the transaction easier and smoother.
- Providing the nature and value of the aircraft as it relates to collateral for financial institutions.
- Assisting a financial institution by supporting the loan portfolio for examination by the loan committee and/or bank examiner.
- The appraisal distinguishes the sellers aircraft from other aircraft listed for sale. A Certified Aircraft Appraisal can reduce the time required to sell an aircraft by 50 percent.
Buying an aircraft is not an easy endeavor. It takes time and research that can be difficult for the average buyer to devote. An agent can work for you to find the airplane that you want, with the features you want and negotiate on your behalf with the experience as a buyer that the average person purchasing a plane does not have. Your agent will also act on your behalf, and your behalf alone. When dealing with a broker or salesperson, no matter what their beliefs in their own honesty, as an agent for the seller, they owe a fiduciary responsibility to the seller to act in their behalf alone. Your agent will have the same responsibility, but to you. With the average age of aircraft in the general aviation fleet being 30 or more years old, you need to have an expert on your side who knows the real value of the plane in question.
At Covington Aircraft, we care about aviation, aviators and anyone who does business in aviation.
We are proud to be a part of the aviation family. We want what is best for aviation. Part of what we do to ensure this is to try and inform those in the aviation industry of the best services available. Just as we strive to provide the best services possible for our clients, we will not pass up the opportunity to make a new friend and happily steer anyone to the business that can help them the most, whether it is us or someone else. We are a certified distributor and designated overhaul facility for Pratt & Whitney Canada, specializing in the PT6A turbine, the R-985 and R-1340 radial engines for business and agricultural aircraft. We are a world-leading aircraft repair facility and can provide you with the shortest possible downtime and the very best in service for a competitive price.
Contact Us – Call (918) 932-3993