You’re Ready to Sell your Plane. But who’s on your Team?
DateAugust 1, 2018
It’s no secret that today’s aircraft market is very healthy. ”Hot” as some may put it. For the first time in what feels like a very long time, we at jetAVIVA are seeing most turbine aircraft pre-owned markets transition from a buyer’s market (inflated inventory and value trends on a race to the bottom) to a well-welcomed seller’s market, where we’re seeing inventory levels at lows not seen in years, and value trends leveling off and actually increasing in many cases.
While the very phrase “seller’s market” implies an advantage to the sellers out there, this situation is actually beneficial for everyone in the industry, especially buyers. The fact that value trends are, at minimum, flat gives a buyer confidence that the asset he or she is purchasing is not going to be a 10,000lb paperweight in the near future. Dwindling inventory levels mean more sellers may come to market to sell and buy another plane. Inventory in the pre-owned markets also directly drive interest in purchasing new from OEMs.
This all sounds great, and we’re all indeed happy to see market movement like this, but it’s also in these times that it may be easy to become complacent in a transaction. A seller wants to sell; buyer wants to buy. Easy peasy; let’s get this done quickly… Right? Perhaps you are an aircraft owner yourself considering selling, wondering “if the market is so great, I should be able to sell it myself, right?”. Sure, but is that the best option for your expensive asset? It’s these times when professional assistance of a dealer/broker is needed more than ever.
This is not a DIY environment.
At jetAVIVA, we have over 500 years of cumulative aviation experience between our team members, and we still learn something new every deal we do. At its very simplest, selling an airplane is, by definition, signing a Bill of Sale signifying a seller agrees to sell, and buyer agrees to buy and take ownership and associated risk. But there are far-reaching implications both before and long after that Bill of Sale is executed. Many of these implications are neither obvious nor easy to manage, which is precisely why you should have a professional on your side.
A typical aircraft owner may transact an airplane every 16-18 months; on average, jetAVIVA closes an airplane every three (3) days. You wouldn’t get on a commercial flight piloted by a crew who hadn’t flown in 18 months, would you? Beyond this quantitative measurement of experience and “currency”, there are many intangible benefits to consider. Below are a few of the most valuable aspects in hiring a professional organization like jetAVIVA.
Multiple teams devoted to one goal: selling your plane.
A one-man-band or a pit crew: which would you prefer? Here at jetAVIVA, we have dedicated teams to every phase of selling an airplane. Our marketing team focuses on presenting marketing material on aircraft that is as visually stunning as it is comprehensively detailed so that prospective buyers can learn everything about the plane before they even contact our sales team. Speaking of our sales team: we have a full-time team of 15 sales professionals working collaboratively in managing prospective buyer traffic so that the several hundred calls and emails received per month are handled quickly and professionally. Our closing and contracts team, dubbed internally as our “Yes-To-Close Team”, ensures that no stone goes unturned and that our clients are not exposed to unnecessary risk during the closing process and beyond.
Technical Inspections Management.
Anyone can call themselves ‘knowledgeable’ these days as long as they have an internet connection and Wikipedia. But the expensive “gotchas” in selling a plane come only from years of technical experience in and around airplanes, which is precisely why jetAVIVA has dedicated technical personnel on our team. Consider this: the Pre-purchase Inspection (PPI) alone can sway your realized cost of the transaction tens to hundreds of thousands, even millions of dollars. What’s the point of getting a buyer for your plane if you have to write a big check to close the sale? The PPI can be the Achilles’ Heel of your deal, so having a team like jetAVIVA on your side will ensure you win the battle.
Seamless transaction handling: trades, financing, training…
“I can offer full asking price and close in 30 days but I need to trade in my current [fill in the blank].” If you’ve ever sold a car, house, plane, boat, or similar asset, this proposal of having something to trade in from a possible buyer likely sounds familiar. But if you’re not in the business of buying/selling what you’re buying or selling, being able to fulfill that proposal and get a deal done is much more difficult, if not impossible. Considering how many turbine aircraft buyers are existing aircraft owners, you are easily removing half of all potential buyers from your buyer pool the instant you decide to sell without a professional sales firm.
Equally as important, as a seller, you may have many first-time aircraft owners, or at minimum, first-time owners of the model airplane you are selling. Many need guidance on training, finance, insurance, maintenance, avionics subscriptions…the list goes on. Are you prepared to give the full guidance and education to these buyers? Do you have that sort of time to spare? With a professional sales organization like jetAVIVA, this is all standard procedure for every deal we do.
A Quick Return on your Money.
If you are considering selling your airplane, now is absolutely the time to take advantage of the healthy marketplace. If you’re thinking you should be using a dealer/broker to sell, then jetAVIVA is here to guide you in the right direction. We’re confident our fee will be returned to you on a multiple; if it’s not, then we have not done our job.
If you’re ready to get started, send us a message here, email us at [email protected], or call us at +1.512.410.0295.