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The Good, the Bad, and the Ugly of Craigslist Aircraft Sales

by GlobalAir.com 12. February 2018 15:00
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One of the aircraft we considered listing for sale on Craigslist
One of the aircraft we considered listing for sale on Craigslist

Craigslist.com is a website for online classifieds where thousands of people post their items for sale, help wanted, or even go to search for a date. I have personally had success with the website by finding my current rental house advertised when I checked the site on a whim. However, there are hundreds of stories out there of people getting scammed and cheated by buyers and sellers on the site, including a story as recent as this week where a woman lost $1,550 in a Craigslist check fraud scheme.http://buffalonews.com/2018/01/20/woman-says-she-lost-1550-in-craigslist-check-fraud-scheme/

Hundreds of Aircraft For Sale On Craigslist

One might be surprised to learn that there are actually hundreds of aircraft advertised for sale on Craigslist as well. But is it really a good idea to search for such a valuable asset on a site that has had a fairly controversial history? I took a look into the world of buying an aircraft on Craigslist and I want to share the good, bad, and ugly of what I found. As always, common good aircraft buying practices should be followed, such as getting a pre-purchase inspection and a title search showing a clear title. If possible, purchasers should seek out a purchase agreement in order to protect both parties. Proceed with caution, but maybe don’t overlook Craigslist in your search for your dream airplane.

The Good

Unlike your regular aircraft for sale websites, Craigslist doesn’t have much of a filter for what aircraft related things people can post. Most searches lead to listings of aircraft parts, advertisements for flight schools, and even a few pilots looking to find others to start a “timeshare” type of deal with their existing planes. It should certainly be mentioned that these can be good opportunities, and you just might find a way to save money by sharing a great plane with other owners instead of buying one.

This is also one of the cheapest options for listing your plane, as it appears there are no listing fees for individual sellers. If you’re selling from a dealership you do incur some fees, but they’re only $5 per listing. You are able to reach a large audience with this website, because it has such a large following to begin with. https://www.craigslist.org/about/help/posting_fees

The Bad

One difficult thing about searching for an aircraft for sale on Craigslist is that the site is organized in a very specific way that does not encourage searching locations other than your own. Instead of simply searching “aircraft for sale” and seeing all aircraft listed on the site, you have to first drill into the Craigslist page for the area where you want to look. Most major cities and counties are included, but having to search through pages and pages of these just to find the aircraft in the first place is overwhelming. The idea behind Craigslist is that you’re buying from people in the local community, but a good deal on an aircraft that you’ve been looking for could very well be thousands of miles away. This isn’t a problem on other aircraft for sale sites, because they mostly list by aircraft category and rarely by location.

A big thing to keep in mind when buying or selling on Craigslist is that the website has no control over the transaction. They do not guarantee purchases, process payments, and there is certainly no Craigslist seller verification process. They have done a lot to cover their butts in case something goes wrong, so they will almost never be found liable for a purchase gone wrong.

The Ugly

During my research on the topic I did find a pretty hilarious article where someone was trying to sell their Cessna 172 H on Craigslist… Using a photograph of the plane lying upside-down on its back. Evidently the ’68 Cessna got flipped when a tornado went through town, but the owner was still asking for $16,500. It has since been flipped and sold, but I’m not sure I would purchase a 172 in that condition!

https://jalopnik.com/5941947/this-upside-down-airplane-is-for-sale-and-can-be-yours

Another notable “best of Craigslist” is the Corvette-Mooney hybrid that a man made in his backyard. By putting the fuselage of a 1963 Mooney on the frame of a 1984 Corvette, the seller has created the most hideous hybrid of car and airplane one could think of. Not even bothering to match the paint schemes, the red of the Corvette does little to blend with the white and blue of the Mooney. Perhaps intentionally colors of the USA? I hope this is a joke, but it has to be seen to be believed.

https://jalopnik.com/this-backyard-airplane-corvette-monster-is-pretty-much-1750179686

 

Perhaps a better use of Craigslist would be to search for aircraft parts or flight schools. In the end, Craigslist is little more than a community bulletin board where legitimate sellers and scammers alike can post whatever they please. Proceeding with caution is the best way to start your aircraft search on this site, but you just might find a treasure if you look hard enough and be patient.

One of the aircraft we considered listing for sale on Craigslist
One of the aircraft we considered listing for sale on Craigslist

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Aviation Safety | GlobalAir.com

What You Should Know About eBay Aircraft Sales

by GlobalAir.com 12. February 2018 14:06
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We considered listing this plane for sale on eBay
One of the aircraft we considered listing for sale on eBay

When it comes to making any large purchase, being thoughtful and thorough is of the upmost importance. This is true for homes, cars, and especially for airplanes. An airplane is an investment that will hopefully last you years, and absolutely must keep you safe to the best of its abilities when you fly it.

In general, people are wary of where their large ticket items come from. They like to have a full description of the item that is without any deception or misinformation. Typically it is preferred to have a way to inspect the purchase up close, but with aircraft and other online purchases this may be difficult because it is located far away.

One might be surprised to learn that in a Google search for “Aircraft for Sale,” eBay is one of the top results in the first page. Of course, when you search for any number of things followed by “for sale,” eBay also appears on the first page. They’ve been in the business of connecting sellers to buyers for 22 years now. While some may be quick to discount eBay as an unreliable or sketchy source for aircraft sales, there are certainly pros as well as cons to purchasing through their site.

After consulting a few industry experts, reading online forums, and browsing the selection of aircraft for myself, I have come to the conclusion that you just might find a perfectly good aircraft listed on eBay. However, you may have to proceed with more caution than on specific “aircraft for sale” websites. Let’s break it down into the pros and cons.

Pros and Cons of buying Airplanes of Ebay

For the Buyer

Con:

It may be difficult to inspect

As mentioned earlier, the perfect deal is likely not sitting in your backyard. Aircraft can be list a few states away, and without having the ease of heading over to inspect it up close, you may end up buying it sight unseen. eBay did think of this, and you can hire the people are We Go Look to inspect your purchase for you, typically for less than $100.

https://wegolook.com

Pro:

The bid is non-binding.

When you place a bid on eBay Motors, which includes all of their aircraft listings, the bid is non-binding. This simply means that your bid expresses interest in the airplane, but it is not a binding contract between you and the seller. That can be comforting when you want to get your foot in the door but you would still like to read over all the paperwork associated with the plane before you dive in with a purchase.

http://pages.ebay.com/help/policies/non-binding-bid.html#fineprint

For the Seller:

Con:

It may be expensive to list

The terms and conditions on eBay’s site says that there is an $125 fee on listings that are more than $5000 if you list less than 6 vehicles per calendar year. Additionally, the seller has to pay more to have extra photos, extend the listing for more than 7 days, to have their header in bold, and a few other extra features. These numbers can add up quickly, as compared to other aircraft for sale websites where the first listing is often free, and the following ones are at a steep discount. http://pages.ebay.com/help/sell/motorfees.html#volume

Pro:

Your plane is exposed to a larger audience

Although eBay is not as big as it used to be, it does still have a large following. Some old-school aircraft purchasers still check the site, as is evident by the aircraft buyer forums I browsed. Having extra exposure across multiple buying platforms can help your aircraft get noticed and sold, which is the ultimate goal.

Regardless of if you’re buying or selling, you must have your paperwork in order. Any purchase should still be contingent upon a title search showing clear title and a satisfactory pre-purchase inspection.  If you opt to purchase it without a pre-purchase inspection, you are taking a risk that may not be worth it. Some of the most repeated advice for aircraft purchases is to be patient. It may seem like your dream airplane but being thorough with paperwork and inspections is vital.

Another more practical way to utilize eBay is to purchase aircraft parts. You can find some pretty good deals on old parts that only need a little work to look new. If you look at the storefront for Universal Asset Management, you’ll be able to find authentic, rare parts from decommissioned commercial airliners. I found a Russian “EXIT” sign, a flight recorder, and a parking break panel. They have hundreds more treasures listed on their site that do not carry quite the amount of risk involved with purchasing an entire plane.

http://stores.ebay.com/Universal-Asset-Management/_i.html

One more thing:

You may find some hidden treasures.

During my browsing of the eBay airplane listings, I also happened upon an advertisement for 10 hours PIC of multi-engine time in a Piper PA 30 Twin Comanche. In this case the seller is using eBay as a sort of classifieds, reaching a whole new audience that may be thinking about getting their Multi-engine add-on. This is a clever tactic and could be capitalized on if it isn’t against eBay’s terms and conditions!


We ended up choosing not to sell this plane on eBay

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Aircraft Sales | GlobalAir.com | Aircraft For Sale

What’s Good About Used Aircraft Sales? Market Changes Could Stimulate Used Jet Sales…

by GlobalAir.com 8. December 2017 12:02
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Article written by and with permission:
Michael D Chase
Principal
Chase & Associates
1628 Snowmass Place
Lewisville, TX 75077
www.mdchase.aero
Cell: 214-226-9882 • Office: +1.972-966-1440
services@mdchase.com

Questions about the Business Aviation recovery still linger as there has not been much market movement to date. With most of 2017 behind us, however, we may be on the ‘cusp of change’. ‘For Sale’ inventories are down and aircraft transactions are up, while business jet prices remain weak.

Real gross domestic product (GDP) increased at an annual rate of 3% percent in Q3 2017, according to the ‘advance’ estimate released by the Bureau of Economic Analysis. In Q2, real GDP increased 3.1%. This is welcome news because, as we have historically seen, when GDP is at the 3% growth mark (or higher) Business Aviation traditionally does well.

These quarterly GDP changes between 2009 and 2017 can be viewed in Table A. Highlighted in yellow are the quarters that GDP was 3% or higher. Historically, we have not seen two back-to-back quarterly GDP increases of 3% or more since Q2 and Q3 2014.

 

 

The ‘For Sale’ Inventory

Chart A illustrates that the ‘For Sale’ inventory of Business Jets has decreased steadily from a high-point in July 2009 (2,938) to 2,225 jets in September 2017. That’s a reduction in the percentage of the in-service fleet from 17.7% in July 2009 to 10.4% now. This is a positive sign as the inventory ‘For Sale’ is dropping, albeit slowly.

Today’s market remains good for buyers because the aircraft ‘For Sale’ inventory remains over 10%. If jet owners are retaining their business jets longer since the downturn began in 2008, perhaps that would help explain why the used business jets ‘For Sale’ inventory has remained at such high levels since the Great Recession.

The percentage ‘For Sale’ has dropped from 11.0% in January 2017 to 10.4% at the end of September 2017. Indeed, most aircraft business jet dealers and brokers today would tell you that the pristine used jets that were on the market a few years ago have become more challenging to locate.

 

 

Used Full Sale Transactions (Including Whole Sales & Leases)

Further analysis of January-September 2017 shows mixed results for the six segments reported by JETNET in the September 2017 YTD Market Information release that included full sale transactions increase for business jets (5.9%), turbine helicopters (5.7%) and Commercial Airliners (8.8%) in YTD numbers (YTD September 2017 versus YTD September 2016).

The remaining three segments reported double-digit decreases in transactions with piston helicopters (-14.1%) showing the largest drop in YTD 2017 vs 2016.

Charts B & C depict the 12-Month used business jet and turbine helicopter moving average, displayed for the full retail transactions from January 2012 to September 2017.

From January 2012, used business jet transactions steadily increased until 2014—from 2,300 to over 2,800. A leveling-off followed in 2015, and 2016 produced mixed activity (while remaining well above the 2,800 line of transactions).

Since dropping to 2,652 transactions in January 2017 the used business jet market segment has shown a sharp recovery through September 2017 (2,833). This could be a result of built-up demand in the US after the newly-elected government administration finds its footing and the stock market continues to climb to record highs.

 

 

Since reaching a low point in January 2017, the used turbine helicopter market segment has shown a very rapid recovery leading into September 2017 (see Chart C). This is great news, and could indicate better days ahead for the turbine helicopter market.

 

US Jet-A Fuel Price

As of November 6, 2017, US Jet-A average price was $4.76/gallon and appeared to be on the rise. This fuel cost increase could have a negative impact on some of the progress we have been making in business aircraft flight activity. Nevertheless, today’s price is still around $2.00 less than the 2012 record fuel price of $6.84/gallon, as shown in Chart D.

 

The past 12 months of flight operations from September 2017 have been running 2.3% ahead of last year. Flight operations have not reached the peak of 2007 yet, but the trend is a positive sign nonetheless.

 

 

In Summary

Historically, the fourth quarter of the year reflects the most sales growth over the other quarters. We expect to see further growth in Q4 2017 to round out a very good year for used business jets and turbine helicopters. ‘For Sale’ inventories are slowly coming down and sales transactions continue to trend in a positive direction. We keep our fingers crossed and will continue to monitor business aircraft activity through future articles.

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Aircraft Sales | GlobalAir.com | Aircraft For Sale | News

Leading Edge Aviation Solutions - Teams up to provide key benefits to clients

by GlobalAir.com 16. October 2017 13:19
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KEY PLAYERS IN THE AVIATION INDUSTRY COLLABORATE WITH BROKER/DEALER LEADING EDGE AVIATION SOLUTIONS TO PROVIDE BENEFITS TO LEADING EDGE CLIENTS

Some of the most prestigious aviation firms in our industry--Argus, FlightSafety International, Marsh, and MedAire—together with broker/dealer Leading Edge Aviation Solutions announced at the National Business Aviation Association Exhibition and Convention in Las Vegas on Wednesday, October 11, 2017 that they have collaborated with Leading Edge Aviation Solutions in an exclusive benefits program. All were present at MedAire’s booth at the NBAA convention to make the announcement.

This program will offer discounts or other benefits for certain of their products or services to Leading Edge Aviation Solutions’ clients who are buying or selling their aircraft through Leading Edge and/or utilizing Leading Edge technical or consulting services in the buy/sell process. Leading Edge calls this benefits opportunity for their clients “THE EDGE – Benefits”

Leading Edge Aviation Solutions

THE EDGE® is Leading Edge Aviation Solutions’ complete suite of services for buying, selling, technical services, and consulting for aviation. We couldn’t be prouder to now include “THE EDGE-Benefits” in our service offering.

Joe Carfagna, Jr., President of Leading Edge Aviation Solutions said, “We are proud of THE EDGE-Benefits program for our clients, and most especially we are delighted and privileged to work with some of our industry’s key players in effecting and maintaining the program.“

“MedAire is excited to offer industry-leading travel safety solutions to THE EDGE--Benefits program,” said Vice President Strategic Partnerships, Jeffrey Dickey. MedAire has over 30 years of expertise providing medical and security advisory services, medical kits, and first responder training to give you the resources to take the best possible care of passengers and crew members — wherever you travel, whatever may happen."

“ARGUS is proud to be part of this exciting program”, said Joe Moeggenberg, President & CEO of ARGUS International. “THE EDGE--Benefits will continue to provide value added products and services to Leading Edge clients long after the transaction is completed.”

Dave Davenport, Executive Vice President, Commercial said “FlightSafety International is pleased to serve as the preferred training provider for THE EDGE--Benefits program . We look forward to providing Leading Edge customers with the highest quality training, outstanding service, and value they deserve and expect from FlightSafety.”

Joseph Braunstein, General Aviation Practice Leader, for Marsh, said: “Marsh is proud to be the preferred insurance broker for Leading Edge and assist its clients in the placement and servicing of their aircraft hull and liability insurance.”

Leading Edge Aviation Solutions is one of the aviation industry’s premier private aviation broker/dealers with over 28 years of experience in the aviation marketplace. Leading Edge is a leading expert in the sale, purchase and valuation of corporate, business and private aircraft with over $10 billion in total aircraft sales,acquisitions and new aircraft deliveries and acceptances in that period. We also offer consulting and technical services where we advise some of the world’s most successful people and companies in various aspects of private aviation.

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Aircraft For Sale | Press Release

Residual Values To Drop for Non-ADS-B-equipped Aircraft

by GlobalAir.com 12. June 2017 17:05
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Owners of business aircraft that are not ADS-B-compliant or in the queue to have equipment installed risk seeing already depressed residual values fall even further in advance of FAA’s Jan. 1, 2020 deadline, according to GAMA president and CEO Pete Bunce. “The value of your asset is going to start dropping even before 2020—this is for rotorcraft and fixed-wing—if you don’t have a slot to upgrade,” he said last week during a panel at the National Air Transportation Association’s Business Aviation Conference. “If you’re in the business aviation category and you hit 2020 [without an upgrade], the price [of your aircraft] is going to just plummet.”

While the FAA is adamant that the ADS-B deadline will not be pushed back, Bunce said that too many operators are holding out hope that the date will slip. “Because of that belief, right now, we are not on pace to get the fleet equipped by the 2020 mandate,” he warned.

GAMA is working with the aircraft-valuation community to collect data that will help quantify the problem, Bunce said. The association plans to make the data available to encourage equipage while there is still time to shift momentum. “We have the industrial capacity to get the fleet modified,” Bunce said. But, he cautioned, “If everybody waits until 2019, then it’s not going to happen."

By Sean Broderick – June 8, 2017
AINOnline

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