Maybe you own an aircraft but did you know that you should have an aircraft appraisal? Aircraft appraisal is an important exercise for every aircraft owner as it helps during insurance, loan refinancing and knowing the correct value of your plane if you would like to sell it. It is only competent and certified aircraft appraisers that can do the work. An aircraft appraiser considers several factors during the valuation process and tables a report about the aircraft’s value as at that time. The report is proof of the value of the aircraft at the date of valuation. People can have different opinions about the value of an aircraft, but the most reliable view is the one from an independent certified aircraft appraiser.
Perhaps you could be wondering why it is necessary to have an aircraft appraisal. When you have purchased a plane, the next step is insuring it. One of the prerequisites for insuring an aircraft is availing its appraisal report, and thus, you must have an aircraft appraisal before starting the insurance process. Remember that the plane’s selling price must not necessarily be the value of the plane. When the interest rates of the loan reduce, then you should think of loan refinancing. Your lender will request to know the current status of the plane and its value before issuing a new loan, and that calls for aircraft appraisal. Some people determine the value by comparing their aircraft by those on the internet, but that value is not reliable. It is possible to have similar planes but their values are not necessarily the same, and therefore, an independent aircraft appraiser is the only trustworthy source of knowing your plane’s value.
What could affect the value of your aircraft? Many aircraft owners do not understand why identical planes do not have the same value on valuation. This article outlines the essential considerations for determining an aircraft’s value.
Engine hours – How many hours has your plane’s engine run? How long does it take to carry out maintenance of the engine? Regular engine maintenance can significantly increase the value of your plane, and the frequency of using your plane also impacts on the value of the plane. On the other hand, if the plane’s engine runs for long hours, then the value of the plane can diminish. Call for aircraft appraisal after engine maintenance.
Damages – Are there any damages to your aircraft? Dents, scratches and missing parts can reduce the score of your plane valuation. Your plane can have minor accidents and get scratches, but you should repair them immediately so that it appears neat and in excellent state.
Interior wear – The aircraft appraiser does not only focus on the exterior parts but also the inside of the plane. He will be keen on the state of the lavatory, lighting, color schemes, safety measures, seats, and floors. Make sure that the interior of the plane is well-kept at all times.