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Things To Know About Aircraft Valuation

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Do you know the worth of an airplane?

The value of an airplane is the amount that people are paying for it. But the amount that you will be paid does not carry a lot of weight if you will be looking for a loan. Every time a business aircraft buyer will go to a bank for a loan, the bank will call experts that will be evaluating the aircraft.

The important factors that are associated in an aircraft valuation are note the ones that the bank or buyer wants. The aircraft valuation like will be done by the third party organizations. The valuation of the aircraft is the actual value made by the appraiser, not what the bank or buyer wants.

So you need to know the value of the aircraft. First thing that the appraiser needs to know from the buyer is the value that he or she is looking for in an aircraft. The aircraft valuation will be based on the client which is usually the insurance company or the bank, it might be the market value, the forced liquidation value, the orderly liquidation value, or the scrap value. The policy of the bank will dictate the value of an aircraft in regards to financing.

You should not expect two aircraft with the same year and model to have a similar value. One aircraft might be having issues on its engine while the other might not. One jet might be flying while the other might just be sitting on the ground. Take note also that even the paint job will affect the aircraft valuation. Take note that two similar jets will always have different aircraft valuation.

The appraiser will be looking into the paperwork and logbooks in order to check out if there were heavy landings that caused some damage to the aircraft structure. The aircraft value reference will be affected by the maintenance that was made to the aircraft.

It is important for you to know that there are so many people who are not aware of how to do a good aircraft valuation. That is why people can now enroll in aircraft valuation courses that are offered by various aircraft appraisal companies so that they will know how to do the right aircraft valuations.

There are so many aircraft appraisers that have a background in aviation but there are some that have some experience in the finance industry. Even if aircraft valuation is a really special skill, a lot of aircraft owners will really enjoy great benefits if they will know the process of aircraft valuation. The aircraft owners will be able to manage the process of aircraft valuation properly if they are aware of the important factors that need to be considered in an aircraft valuation. Find interesting facts about aircraft, go to