What is the real worth of an airplane? The short answer to this commonly asked question is simply how much someone is going to give for it. But the thing is, that will no longer be of much weight when you are going to be asking for a loan. If you have been lingering on the consideration of asking the bank for financing in your purchase of a business aircraft, you must know that they will go through consultation for an aircraft valuation with an expert in the field like Richard Berkemeier who is a Senior Accredited Appraiser of the American Society of Appraisers.
According to him, there a lot of factors that are part of figuring out airplane values, especially of a business jet, but what the buyer or bank desires is straight out not part of them. Appraisers are independent third parties that are biased towards nobody. Appraisals are objectively given according to the true value or worth of the airplane and not according to the worth that someone wants it to be valued as.
So how do they find out the true worth of the airplane in question? First, an appraiser like those at VREF Aircraft Value Reference will inquire of the nature of the value that you seek to be given. It is largely based on the client like an insurance company, lending firm, or bank and could be either the orderly liquidation value, the fair market value, or the forced liquidation value, or even the scrap value. This decision is not loosely made by the banker, the nature of the value is compliant with the bank’s policy regarding the matter of financing.
Now I want you to think of two jets of the exact same year and model. Can you expect both of these airplanes to get an appraisal of exactly the same value? The professional appraisers at VREF aircraft answer with a resounding ‘No!’. One of the jets could be a stone’s throw away from being scrap while the other one could be good as new and flying with the condition that it is was made to be in. There are countless factors that could affect the value of an aircraft and thereby set a huge gap between the value of the two we used as an example. Even a messed up paint job could bring down the overall worth of a jet.
The professional appraisers at VREF online will also ensure the thorough examination of logbooks and paperwork as well. They will be checking for incidents that may have compromised the airplane’s structure such as a heavy landing. If the plane has a long record of regular maintenance, this will surely work towards the advantage of the plane’s value. Once an airplane cannot bring forward any logbooks at all, its value will be as good as nothing, and that is precisely why the chain of documents of an airplane must be well-preserved and kept safely, check out and read more here!
Hire the people with great expertise in aircraft valuation and read more here at VREF online. Check out this website at https://www.dictionary.com/browse/aviation for more info about aircraft.
