Selling an aircraft is very similar to selling a piece of real estate. It requires some special tools and specific knowledge.  Let me share some of the tools and knowledge I have gained over the past 30 years.

Before we continue, many people might ask  “what makes you an expert in this area?" The answer is simple, I have been involved in most every aspect of aviation for over 30 years. I have personally owned over 50 aircraft. I have appraised aircraft for some of the largest banks in the country, have been involved with aircraft sales my entire career and have helped hundreds of people with their cooperatives. With that, lets talk about how to sell an aircraft in a sluggish economy.

With real estate the key is location, location, location. With aircraft sales, it is an acronym I call CAPTON. And yes, I know how to spell Captain. However, for this discussion Captain spelled CAPTON, stands for the six tips that will help you sell your aircraft. The six tips are as followed:

Condition

Advertising

Pricing

Terms

Options

Non-aircraft trades

Let's take a look at each area of concern. Please keep in mind that there are other areas that need to be addressed, however, these six areas are critical, especially in a bad economy. If you address each of these areas, you will put your aircraft on a pedestal and have a much better chance of procuring a sale or generating a positive cash flow.

Condition: in a buyers market and or a sluggish economy, it is imperative that you pay attention to condition. When purchasing an aircraft I always ask about the paint and interior. I have been told many times, even by professionals, brokers and people that should know better, that “the paint is in good shape, but could use a good buffing.” If it needs buffing, then buff it. Even if it doesn't need it, do it. Looks and conditions sell the vehicle. This is especially true with aircraft, and most important is the exterior. My simple recommendation is to spend $200 and have a good detail shop come out and do a good detail on it. If the stripes are faded, I highly recommend a company called just stick it. They provide aerospace quality stripes that you can apply yourself for under $600. The number one rule concerning condition is to make the exterior shine.

Advertising: advertising is a must and should not be expensive. I have very seldom used the high-priced aviation magazines, newspapers and websites. There are plenty of very inexpensive sites that get excellent exposure, such as barnstormers or as a LetsFly cooperative owner your advertising is free and is automatically posted on over 300 sites.

Pricing: a good place to start with pricing your aircraft is through AOPA and their aircraft evaluation calculator called Vref. I also like to go into the market and see what other aircraft are being advertised that have similar times and equipment. I usually put my aircraft on the market for less than the other advertised prices and offer some good terms.

Terms: if you are in any position to offer terms and options, you will have a much greater chance of selling your aircraft. This is proven out in other industries as well. For example: if you have two homes side by side, and they are both selling for $100,000, and one requires 5000 down and the other requires $100,000 cash, which one will sell quicker? The answer is obvious. I personally believe this is one of the factors that make the Letsfly.org program so successful. An initial investment of $2900 and no qualifying financing is very attractive. In addition, they are one of the few organizations that offer a cooperative ownership option.

Options: there are two options that greatly improve the chances of selling your aircraft. They are financing and shared ownership. We talked about the importance of financing under the terms. If you are unable to provide personal financing, then arrange for other financing options. It's important. The other option we need to discuss is shared ownership. If you're thinking about forming a partnership, don't! It is not worth the bad feelings and frustration. I have personally been involved in over 20 aircraft partnerships. Now I know better, and I avoid them like the plague.

There are four types of aircraft ownership (full, fractional, cooperatives and partnerships) Cooperative ownership is an excellent option for a person wanting to sell their aircraft. It may allow you to sell the aircraft, generate a positive cash flow and still be able to fly the aircraft. Aircraft cooperatives utilize the principles of a cooperative and are coupled with the practices used in real estate. Let me give you an example: an investor buys a four plex, leases out three units, and his or her unit is paid for. This model is very successful in real estate because it provides a win-win situation and like real estate, the cooperative owner can enjoy the same benefits with one exception: they can still experience the freedom of flying. This is an excellent option to consider.

Non-aviation trades: being willing to think out side the box and accept non-aviation items and trade such as motorcycles, four wheelers, motor homes, bicycles, services, etc. will also enhance your ability to sell your aircraft. If you have any questions or comments about this article, feel free to contact Eldon at 208-523-3073