How To Buy A Great Private Plane Cheap
If you are interested in buying your own private plane
, you may think you have to pay a fortune. However, if you are smart about where you buy, and how you buy, this doesn't need to be the case.
When a market is on the rise we often speak of glass ceilings. You know that invisible top price that no one could ever imagine any pre-owned aircraft could go above.
Then it does. Is there any more predictability in the bottom of the pre-owned market?
In an up market it is easy to set the glass ceiling. It is the price of the new aircraft from the factory.
Believe it or not, in a rich demand, low supply market, just sheer availability of like-new aircraft created upward pressure against the glass ceiling. In some cases, people paid more for a like-new aircraft than they did for the brand new one.
Therefore, the low time newest planes had a value that was either defined by the new aircraft from the factory, or worse, created the starting point for the value of the like-new plane. In fact, certain companies have a special pricing consideration for what they call a "Prime Condition Adjustment."
This adjustment gives between a 5% and 25% advantage to those aircraft against the rest of the aircraft in that segment. The advantage is somewhat subjective, however, it is clear that a greater value is given to what is considered to be the aircraft just driven on Sunday to church.
Low time against the fleet, great avionics, and great aesthetics. So, there is even a danger of buying a cheap plane for too much!
But those are not the kinds of problems buyers are facing in the current market environment. So much for an up market.
Now let's talk about the current market. First, look at the total percent of the fleet that is for sale.
This will determine the vulnerability of any given segment. But wait, how do you find a great plane in all this supply?
It can almost seem as though you are a kid in a candy store. Ever come out of a candy store as a kid and all you had was a stomachache?
Now back to the aircraft market. Read the ads, "My owner says we will be the next one to sell," "Must sell by year end," and "Best offer this week."
One must know that success should be inevitable for the buyer. But do not measure success on price alone.
Buy the best plane cheap. Here are the ways we separate the aircraft that are for sale to make sure we are getting the best.
First, for at least a minute, don't look at price; look only at benefits. Lowest time, best avionics, best pedigree, best records, and as long as we are setting the benchmarks, no damage.
In a favorable market these benefits would cause the aircraft to have a greater value based on the "Prime Condition Adjustment." In this market, it is the true separator between buying a "Cheap" plane cheap or a "Great" plane cheap.
There should be no reason to pay an adjusted up value for these benefits. Now take those aircraft that make that cut and begin to build your matrix down.
Maybe the lowest time is out of your budget. That is ok, so one should work down through the fleet as follows.
Determine the average time on the fleet segment you are reviewing. If you cannot afford the lowest time, highest serial number, then shoot for average time.
Most aircraft have an average use per year of about 350 hrs. This of course can vary and does tend to be higher as you move into the jets and then higher again into the larger jets.
Now look at the age range of the aircraft you are reviewing. If it is a 10-year old plane, the average time should be between 3,500 hrs. to 5,000 hrs. depending on the previous criteria.
So, try to buy around average. One might decide to go a little above average if that number is in close proximity to overhaul expense.
Better to try not to pay retail dollars for an aircraft that just had full overhauls that you may never take advantage of during your ownership. So maybe you will find an aircraft with 500 to 1,000 hrs. since overhaul.
Albeit a little above average time, it is a better value. Do your research, and check out a purchase for yourself today.
by: Tom Selwick
Finding A Flight Sim Club That's Best For You Irá decorar sua casa nova? Faça um planejamento Ercan Flights| Cheap Cyprus Flights| Cheap Flights To Larnaca Experience Sunny Side Of America With Los Angeles Flights! Cheapest Flights: Cheapest Flight Always In Your Pocket Indigo Airlines Goes International Airport transfers with toandfromairport.co.uk Buying International Flight Tickets: First Class Or Economy Class? Over Day To Luxor From Sharm Elsheikh By Flight Visit Spectacular Bangkok With Cheap Flights Flights Booking As Per Passengers Needs Cheap flight tickets: Get Quick Cheap Flights How To Save Money While International Flight Booking?