As we approach the end of 2012, many companies, organizations, and individuals are considering the purchase of an aircraft for their corporate or personal needs. But with so many aircraft for sale, what is the best way to determine the best value in selecting a pre-owned aircraft? While the whole process can be overwhelming, the key is to find a partner that will help guide you through the process and work with you to make the best decision for your needs. Some tips to keep in mind:
- Strategy: As with any large purchase, it is important to go into the buying decision with a strategy. The first step to a successful purchasing strategy development is linking strategy to organizational objectives. We often help our clients navigate through this to establish a strategy. From there, we can begin to gather data and make better informed decisions for you and/or your company.
- Knowledge is Power: It is important to use the most powerful analytics available, whether you are buying or selling. Guardian Jet’s online portal, the VAULT, allows users to access every real-time information including Aircraft Valuations, Fleet Fair Market Values, Fleet Plans, Market Surveys, Client Updates for Sales and Acquisitions, Contract Negotiations, Pre-Purchase Inspection Oversight, and Asset Management. From an analytics perspective, Guardian Jet has tools that allow owners and prospects to compare various aircraft in a fleet, and then compare the real cost of ownership over the entire ownership period for different model aircraft. At this time, we keep 52 different aircraft model markets current, providing us the ability to track and compare every aircraft for sale in a market as well as what has sold recently. What does this mean? With this type of access to data, you can make a better informed decision about your aircraft purchase.
- Projections: Another major component when considering the purchase of an aircraft is financial projections, how to use them to compare aircraft, fleet options, financial vehicles, and timing that is available. By using financial projections, you can accurately depict what the real ownership costs are over a number of years for different price points or vintage models. Understanding all the costs associated with the ownership and operation over a set term, makes it much easier to set an aviation budget. Make sure to apply the financial metrics your company decides are important, including tax rates, NPV or hurdle rates, residual values, etc. to determine the real costs to you over the ownership period. Also, make sure to study different timing options and ownership intervals through our financial projection process to help you understand what the future looks like.
Having a trusted partner like Guardian Jet can make sure this process is an easy one. Do you have any tips that we missed here? Let us know!