Welcome to this week’s edition of “Clearance To Fly,” a newsletter designed to help educate aviation enthusiast in the aircraft market. As a pilot and someone deeply involved in aircraft purchasing and financing, I’ve seen firsthand how seemingly small details can make a big difference when it comes to an aircraft’s value and desirability. This edition is sponsored by FLYING Finance. Get the fastest and easiest financing for your aircraft purchase. Now, let’s dive into three key factors that can significantly impact your plane’s worth: logbooks, overhauls, and damage history.
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Logbooks: The Aircraft’s Life Story
Think of logbooks as your aircraft’s biography. They tell the tale of where it’s been, what it’s been through, and how well it’s been cared for. Complete and well-organized logbooks are like gold in the aviation world. They provide a clear picture of the aircraft’s maintenance history, modifications, and compliance with airworthiness directives.
But here’s where it gets interesting: digitized logbooks are becoming increasingly valuable. Not only do they offer better protection against loss or damage, but they also make it easier for potential buyers to review the aircraft’s history. If you’re looking to sell, consider digitizing those paper logs – it could make your aircraft more attractive to buyers.
Now, what happens if logbooks are missing? It’s not great news, I’m afraid. Missing logbooks can devalue an aircraft by 15% or more, depending on how many years of history are absent and which sections are missing. It’s like trying to sell a used car without any service records – buyers will naturally be more cautious. If an aircraft is missing the beginning stages of life, this makes people a little more weary of its history. If the logbooks are missing a 2-3 year chunk in the middle, that’s a little easier on the eye, and can sometimes be recreated if the shop that did the work is still around and holds onto records. Overall, if buying an aircraft, your goal should be to find one with complete logbooks, but missing some isn’t a showstopper, but might require some explaining on the selling parties side.
Overhauls: Timing is Everything
When it comes to engines, timing really is everything. An overhaul within the last 20 years and an engine below its Time Before Overhaul (TBO) can significantly broaden your pool of potential buyers. Why? Because it means the new owner won’t be facing a hefty maintenance bill in the near future.
This doesn’t just affect the aircraft’s desirability – it can also impact financing options. At FLYING Finance, we’ve seen how a well-maintained engine can open doors to better financing terms. It’s a win-win: the buyer gets a reliable aircraft, and you get a quicker sale at a better price.
I know what a lot of people are thinking, “TBO isn’t a requirement” and while yes you are right, it is the manufacturers recommended overhaul period. While way more expensive, if your cars manual says to change the oil every 5,000 miles, being a pilot, you are likely to adhere to that. These are airplanes we are putting family, friends and sometimes clients in, so if you aren’t one to do overhauls at TBO, keep a close eye on compressions and get oil analysis done frequently.
Damage History: It’s All About the Repairs
Let’s be clear: damage history doesn’t automatically make an aircraft undesirable. What matters most is how the damage was repaired and documented. If repairs were carried out by a reputable shop and the logbooks clearly detail what was fixed and how it was fixed, many buyers will be reassured.
The key here is transparency. Detailed repair records show that issues were addressed professionally and thoroughly, which can actually enhance an aircraft’s perceived value. It’s much better than the alternative – a suspiciously pristine logbook that raises questions about whether problems were simply covered up.
If you are looking at an airplane with damage history, don’t be afraid to ask questions or negotiate the sales price. Damage history can affect the value of the aircraft and limit buyers in the future so it’s best to go into it being comfortable rather than regretful.
Ready for Takeoff?
Getting pre-approved for aircraft financing is more than just a smart financial move – it’s a strategic one. It gives you clarity on your budget, boosts your negotiating power, speeds up the buying process, and helps you compete with cash buyers. Plus, it shows sellers you’re serious about making a purchase.
So, before you start scrolling through aircraft listings or heading to the next air show, consider getting pre-approved. It could be the difference between watching your dream plane fly away with someone else or taking off in it yourself.
Remember, at FLYING Finance, we’re here to help you navigate the pre-approval process and get you closer to owning your own aircraft. Don’t hesitate to reach out if you have any questions or want to get started.
Until next time, keep your eyes on the skies and your finances in order. Happy flying!
P.S. Got questions about aircraft financing or the purchasing process? Drop us a line at FLYING Finance. We’re always happy to chat about planes and how to get you into the cockpit of your dreams! 423-558-2024
Keller Laseter, Chief Commercial Officer, FLYING Finance
Bringing over 10 years of aviation experience and multiple years in finance, Keller Laseter combines both of those skills to be FLYING Finance’s CCO. His leading knowledge in all categories and classes of fixed wing aircraft helps guide you through the finance process with ease and will leave you knowing you’re in great hands. Keller holds type ratings in the Beechjet 400A/XP/NXT, Embraer E-175 and has many hours in King Airs, along with other high-performance aircraft. Throughout his career, he’s had the opportunity to enjoy the world of aviation and many different operations. As an ATP, CFI, and CFII, aviation is in his blood.
