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not seen. That can have a huge impact –andnotalwaysagoodone–onhow your avionics upgrade turns out.
Upgrades to Boost the Bottom Line
Approaching an avionics upgrade to maximize your aircraft’s selling price is a whole different challenge. It’s like putting down a new carpet before you list your house. Maybe the new owner doesn’t like green shag...
Anyway, the first step to a success- ful outcome is determining exactly what upgrades you need to make to bring your aircraft up to par with oth- ers currently on the market. This is no time for emotional attachments. Ev- eryone’s airplane is a “10.” So the most reliable source of this kind of impartial and objective market information is an accredited aircraft appraiser.
“Although upgrades will always add value to an aircraft, exactly how much that increases the selling price will depend on how it impacts func- tionality and capabilities,” explained
George Kleros, senior VP strategic event management and f leet support, Jet Support Services, Inc. (JSSI). “The appraiser can determine fair market value by using the sales comparison approach know as ‘comps,’ which are recognized by the American Society of Appraisers and accepted by all aviation financial institutions.”
“The owner would like to know what the value of their aircraft would be be- fore and after an avionics upgrade,” he added. “Remember that asking price and market price are two different things. Especially in today’s world.”
No doubt knowing where your air- craft stands in the market is a valuable piece of information that could save you tens of thousands of dollars in not doing an upgrade you may have thought was necessary. Many owners have done an extensive upgrade think- ing that they were making the right move only to learn that they wasted their time and money. So, starting with solid data can be a life-saver. Of
course, this kind of information does come at a price.
“We offer a basic ‘desktop’ evalua- tion option. We look at this airplane compared with airplanes with compa- rable equipage, age, paint, hours, with or without an engine program, and all,” Kleros stated. “There are a lot of variables, but we can come up with a basic number.”
“If the owner wants an on-site ap- praisal, we will grade each component in the cockpit, the interior, paint, en- gines, and airframe. It gives us a very accurate estimate of the market value,” he says. “It’s not for everyone, but it can pay off in the right situations.”
Best Bang for Your Bucks?
Well, isn’t that the proverbial $100,000 question. Unfortunately, there’s no easy answer. It depends on your airplane and what the next owner is looking for. Step one is any current or soon-to-be-obsolete equipment, like CRT displays or LORAN units, need to be replaced ASAP. And if there’s not an
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December 2020 / TWIN & TURBINE • 13