
BROUGHT TO YOU BY FLYING FINANCE
Selling a financed aircraft involves several crucial steps and considerations, as it combines the complexities of standard aircraft sales with additional financial obligations tied to the loan.
Here’s a comprehensive guide on ensuring a smooth transaction while maximizing your aircraft’s resale value.
Timing is pivotal in the aircraft sales process. The market for aircraft fluctuates due to various factors, including rule changes and tech advancements. If you want to achieve the best return, you’ll have to consider market cycles.
Aircraft resale markets often operate in cycles, influenced by broader economic trends (and sometimes changes in policy, as in bonus depreciation or the FAA’s recent MOSAIC rules. Selling your aircraft during an upswing can command higher prices, and of course the inverse is also true.
You’ll also need to factor in your aircraft’s age and condition, and pay attention to the upgrades that are most popular. Sometimes a simple refurbishment or avionics upgrade can significantly improve what you can expect to sell for.
Determining the ideal time to list your aircraft requires careful market research. If you’re able, consult with a qualified aircraft broker as well.
There are several steps you can take to make preparing for your sale smoother:
- Document organization: Compile all necessary documentation, including items like maintenance logs and service records. Potential buyers place significant value on a thoroughly documented maintenance history.
- Lien releases: Before listing your aircraft, ensure all liens linked to the loan are clear. Work with your lender to obtain a lien release, thereby guaranteeing a clean title transfer. Escrow services can help manage those transitions.
- Assessing resale value: Conduct a market analysis to determine a competitive asking price. Factors influencing this include aircraft age, flight hours, technological advancements, and recent upgrades.
Navigating the selling process isn’t always easy. If you feel confident in your market research and documentation, you can facilitate your own direct sale independently. For a fee, there are brokerages that can provide you with expert pricing strategies and a broader network of potential buyers.
Either way, effective marketing is the best way to maximize your sale potential. Online marketplaces like AvBuyer and Aircraft For Sale are a great way to engage potential buyers. Detailed listings with comprehensive aircraft specifications tend to resonate well with informed buyers, which is why these sites get a lot of traffic and successful transactions.
Given the stakes involved, securing the sale legally and financially is paramount. Escrow services shield both buyer and seller by overseeing the financial exchange and ensuring a lien-free sale.
Completing the transaction involves several legalities:
- Purchase agreement: A legally binding purchase agreement must detail all sale terms, conditions, and responsibilities. This document protects both parties and formalizes the sale structure.
- Title and registration transfer: After clearing all liens, make sure the aircraft’s title and registration transfer to the new owner is filed with the FAA.
Selling a financed aircraft sometimes accompanies challenges related to liens and financing. Proactively navigating these issues often involves lien management and transparency. Addressing liens thoroughly before listing avoids complications during negotiation stages.
Selling your financed aircraft is an intricate process that demands strategic planning and a keen understanding of market dynamics. Don’t be afraid to engage professionals when needed so you can maximize your aircraft’s resale value and ensure a successful transaction.
FLYING Finance’s comprehensive knowledge of aircraft values can make for a seamless, streamlined transaction. With the right partner, acquiring your dream aircraft might be more attainable than you think.
If you want to get started on the process of getting preapproved, visit FLYING Finance and we can help you today.