How to Preserve the Value of Your Plane
The title of this post could also be, “How to keep from being frustrated when you’re ready to sell.”
Ever heard the saying, “you’ve got to spend money to make money?”
Except, with airplanes, you’ve got to spend money to keep from losing more money than you should. If you can’t – or won’t – spend the necessary money on your airplane while you own it then you shouldn’t be surprised that buyers will either ignore it or toss you low-ball offers.
So, what can you do to keep that from happening?
Don’t overbuy. Sure, you may be able to afford to pay for the plane of your dreams, but do you have the wherewithal to operate and maintain it? Most buyers vastly underestimate the cost to keep an airplane so, before you get in over your head, make sure you have reliable estimates on the cost of insurance, hangar, routine and unexpected maintenance, engine and prop reserves, taxes, upgrades, cleaning, and databases.
Don’t cheap-out on maintenance. As an owner it’s easy to justify deferred maintenance and inoperative components. “I don’t use it anyway,” you say. “This isn’t a safety item and it can wait until next year.” Uh huh. Both of those comments fall under the “self-delusion” category and before you know it you’ve got more things to fix than you can afford to. Budget appropriately and get things fixed when they break. Buyers quickly pick up on your cheapo maintenance approach and assume there will be a lot of items they will have to pay to fix themselves.
Keep meticulous records. Make sure your A&P writes clear and detailed information in each log book entry and that those log book entries are maintained within a well-organized set of aircraft records. And keep those logs in a safe, fire-proof place. After all, if you lose them you’ll also lose 10-15%, if not more, of your airplane’s value. Better yet, digitize them and store them in the cloud. Good logs instill confidence in buyers and can equate to higher offers.
Keep your plane updated. This includes avionics, paint, interior, airframe, and engine related items. No one cares that your old nav/com still works nor will they be sympathetic to your opinion that “it worked for me, why can’t it work for them?” If you tear a seat covering, fix it. If you spill coffee on your light-colored carpet, replace it if necessary. Little things left untended add up to big things that a prospective buyer will have to wrap their heads around.
Cleanliness IS a virture. Get rid of the bug spatter. Remove the dirt and dust. Vacuum the plane. Clean smudges off your windows. And most definitely, eliminate that funky smell that’s been in there for as long as you can remember. If you’re looking for a home and you walk into a place that’s a dump, you quickly start thinking about the hidden costs. Airplanes are no different. Keeping it clean to begin with is one of the easiest ways to preserve value.
When you’re ready to sell your pride and joy, we want you to succeed. And, if we can help you along the way, call on us any time for a second opinion.