Tuesday, April 23, 2013

Three Common Mistakes when Buying & Selling Jet and Turboprop Aircraft. Step 6 of 9.

Setting a budget and understanding the trade difference:

Hello, Jake Huling here with Aircraft Sales Advisor. I’d like to welcome you to the sixth video report in a new series called, 9 Steps to a Successful Sale or Purchase of Your Plane.

In the last report we covered one of the more confusing factors when determining a plane's value, and that is, aftermarket upgrades. We looked at upgrades from three different perspectives. 

One, if you own a plane with upgrades, what they are worth. 

Two, if you own a plane and are thinking of adding upgrades, what makes the best type of upgrades and where should you spend your money. 

And three, if you are buying a plane what type of upgrades you should be looking for, and how much you should pay for them.

In today’s report we’re going to cover budgets, realistic expectations, and the three most common mistakes sellers and buyers make in this area. 

And in addition to that, we're going to talk about the importance of keeping your eye on the trade difference, when both selling and buying a plane. And what in the world a build plane is? 

So let’s get right to it.

Setting your budget:
Two of most common and potentially challenging questions when setting a budget are: 

One, how much of what we want and need in a plane, can we get with our current budget? 

And two, how much of what we're hoping to get for our current plane is realistic? If that sounds at all familiar, you are not alone. 

These two very common questions both have very similar answers.
So let’s start by taking a look at the three most common mistakes sellers and buyers make in this area.   

·  #1 is What I originally paid for my plane.
Now stay with me, because this one gets a lot of owners in trouble and I'll give you an example of how it happens.