According to a relatively recent report, there are around 609,000 pilots in the US.
If you’re one of these pilots, you might be at the point where you’re interested in buying a plane. If that’s the case, you should learn more about something known as ‘appraisals,’ as this concept can stop you from buying ‘bad’ planes.
Read on, and you’ll learn three things you need to know about aircraft appraisals. If you want to avoid making a bad decision when buying a plane, you’ll soon see how appraisals can help.
- Appraisals Help You Know What You Are Buying
One of the great things about aircraft appraisals is that they can give you a thorough understanding of a particular plane. This information can then help you determine if a particular plane is worth the price it is currently listed for.
If you didn’t have this information, it would be hard to tell if you’re getting a great deal or if you are actually being ripped off.
- Appraisals Come In Many Forms
When it comes to aircraft appraisals, it’s important to note there isn’t actually one uniform approach.
In fact, you’ll find there are actually three different approaches you can take when appraising an aircraft.
The first approach is often known as a ‘pricing evaluation.’ This kind of appraisal isn’t that thorough, as it only uses historic pricing data to calculate the value of a specific plane.
The second approach is something known as a ‘desktop appraisal.’ This approach is based on current market data, as well as predictions on how prices will fluctuate over time.
This approach can help you figure out if a certain plane will go up or down in price after you’ve bought it. This can then help you determine the resale value of a given plane.
The final approach is called a ‘physical appraisal,’ and it is the most thorough aircraft appraising approach.
This method produces a pricing estimate based on the physical attributes of a plane, as well as relevant market data. As you might’ve guessed, this approach can be the most expensive, but it can deliver the best data.
- There Are Official Appraisal Bodies
There are three official aircraft appraisal organizations, and these institutions typically offer accreditations.
The three aircraft appraising bodies are called:
- American Society of Appraisers (ASA)
- Professional Aircraft Appraisal Organization (PAAO)
- International Society of Transport Aircraft Trading (ISTAT)
If you want an appraisal that you can rely on, you need to make sure the company/person you work with is accredited by one of these bodies.
Will You Make Use of Aircraft Appraisals?
If you’re looking to buy a plane, aircraft appraisals can protect you from making a bad decision.
Now, as alluded to earlier, good appraisals can be a little pricey and this might put you off. However, this expense is often just a small percentage of what you actually pay for a plane.
Thus, when you consider that a good appraisal can protect you from spending lots of money on a ‘bad plane,’ you could argue that the money is well spent.
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