Because private jets are a significant investment, the selling process is time-consuming and fraught with complications. Sellers need to set a realistic market valuation and allow time for the transaction. They will also benefit from inspection guidance, technical guidance, and legal advice.
To ensure you’re satisfied with the final transaction and recoup the value of your asset, avoid these four critical mistakes.
To get the optimal price for your asset, you should clearly understand the jet's maintenance status and be sure it also looks in good repair. There’s no need to invest in a refurbishment since the buyer may prefer to customise the jet to their needs, but the plane should be clean and presentable. If there are any known maintenance issues, they could affect the sales price. A qualified appraiser will consider all current market factors for the specific model of your jet. They can also value any upgrades made since you purchased it. They will suggest a sales price likely to lead to a successful transaction.
The pre-purchase inspection is closely related to the sales price and is a critical step in closing the sale. A prospective buyer will want to schedule a thorough inspection of the jet, and issues may arise that the owner needs to know about. A detailed maintenance record for the aircraft’s service life will avoid surprises and inspection costs. Sellers may want to have their own qualified maintenance representatives on-site during the inspection so they can be confident of the findings and any repair costs that will affect the sales price.
Specific components, such as aircraft engines, may have existing power-by-the-hour contracts to manage maintenance costs. Those contracts may have a negative or positive balance for services performed, which must be settled at the point of sale and before the aircraft changes hands. Sellers should know their exposure under these contracts early on.
Where you hand over your jet can affect the gains from the sale, both in terms of taxes and delivery costs. A knowledgeable advisor can help put together a list of venues for transfer that will ensure the most significant benefit for all parties involved.
The selling process, including pre-buy inspection, can take months. Consider making charter flight arrangements if travel needs arise during the transaction to cover aircraft downtime.
An experienced broker can be your best ally when selling your private jet. They will guide you through every step of the selling process, ensuring you get the best return on your valuable asset. LunaSolutions advisors are ready to answer any questions you may have. Thanks to a 15-year experience in corporate aviation, they will guide you throughout the procedure, in close collaboration with you and in line with your expectations and requests.