Top 5 Aviation Finance Myths Everyone Still Believes
The aviation finance industry is shrouded in misconceptions, even among seasoned professionals and pilots. These myths can and do lead to poor strategic decisions and
At Flying Financial Group, we frequently encounter questions like “How much is this plane worth?” and “What is the book value on this plane?” However, the truth behind aircraft valuation is far from straightforward. This article will help you understand how planes are valued, the factors that impact market value, and common mistakes to look out for.
The value of an aircraft depends on multiple factors, including the make/model, total time on airframe, engine maintenance history, and interior/exterior refurbishment. It’s important to know what these factors mean to understand how planes are valued. Tools like Aircraft Post are great resources for information on bid/ask spread and market trends when evaluating aircraft pricing.
After the COVID-19 Pandemic, we saw an unexpected surge in demand for airplanes along with record breaking low interest rates. This caused a market inflation of around 20-25% on aircraft prices. Many aircraft owners would put their aircraft on the market for a price well above what they bought it for, and were getting multiple all cash offers in less than a week. Though prices are beginning to stabilize, it is unlikely that they will ever return to the rate prior to the pandemic.
The practice of listing aircraft as “Call for Price” is prevalent in the industry, but it can be misleading. While some listings use it as a lead generation tool, others genuinely seek offers within a certain range. Working with a trusted broker can help you decipher these listings and avoid unnecessary frustration.
Speak with an aviation finance professional today to get your real rate on your next aircraft purchase!
Unfortunately, the aviation industry is not immune to scams. Whether you’re considering a jet card, fractional ownership, or brokerage services, thorough due diligence is essential. Beware of offers that seem too good to be true and always verify the credentials of your service providers.
At Flying Financial Group, we prioritize transparency and integrity in all our dealings. Our team is dedicated to guiding you through the complexities of aircraft financing and ensuring you make informed decisions.
Ready to apply? Reach out to us today to learn more about our services and how we can assist you.
The aviation finance industry is shrouded in misconceptions, even among seasoned professionals and pilots. These myths can and do lead to poor strategic decisions and
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By make, model and year, total and engine times, avionics, damage history, logbook completeness and current market demand, often benchmarked with Vref or Aircraft Bluebook.
Most loans use a desktop appraisal from valuation databases. Larger or unusual loans may require an on-site appraisal.
The seller wants to talk first. Use comparable sales and valuation guides to judge whether the asking price, once you get it, is realistic.