Maybe you own an aircraft but did you know that you should have an aircraft appraisal? It is an essential activity which facilitates insurance, loan refinancing and determining your aircraft’ worth if you want to sell it. Aircraft appraisal is carried out by certified aircraft appraiser. The appraiser finds time to examine the plane and write a detailed report on the plane’s worth. As an aircraft owner, you can use the report as proof of the value of the aircraft. 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.
Why is it necessary to have an independent aircraft appraisal report? If you own a plane, it is a requirement to insure 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. To qualify for a new loan, you should present the current condition of the plane and its value which are on the official appraisal report. 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? Even if two planes are bought at the same time, their value will be different afterward because of how their owners handle them. This article highlights the main things that influence the value of aircraft during appraisal.
Engine hours – How frequently do you use your aircraft? What is the interval of doing maintenance of the engine? It is advisable to schedule maintenance of the engine frequently so that it is functioning properly and the engine hours is also a significant factor. If your plane regularly flies with long engine hours, then its value can be low. Schedule your aircraft appraisal immediately after maintenance and not before maintenance service.
Damages – How do you handle damages to the aircraft? A plane that has lots of damages such as dents and missing parts is likely to have a low value. 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 – Your aircraft appraiser will pay attention to the interior section of the plane. He will be keen on the state of the lavatory, lighting, color schemes, safety measures, seats, and floors. Do not just concentrate on the exterior appearance but get the interior section a touch of class.