After the manufacturer and model, there are nine basic "Value Factors" that are the most influential in affecting both the worth of the plane and it's later resale value. These are:

• Production year
  
• Total Airframe Time
  
• Engine Time
  
• Avionics (and other equipment)
  
• Interior: Appearance and Condition
  
• Exterior: Appearance and Condition
  
• Damage History
  
• Logbook Status
  
• Annual Inspection Status

The "Average" Aircraft is considered to include:
• Average airframe time
• Complete and Original logs
• Average paint and interior
• No damage history
• Annual inspection six months old
• All AD notes in compliance.
• Average engine time (more on this later)

Some pricing guides assume an "average" avionics package, but our experience shows that this is definitely an inaccurate approach. As the fleet ages, and older aircraft are equipped with the latest avionics, the "average" package has become the exception rather than the rule. The modern avionics package now represents a significant percentage of the aircraft value, and should be properly calculated as such.

Production years are obviously important, but with most of the general aviation fleet over twenty-eight years old, the distinction in values between model years is less important than it used to be. Even so, a 1980 Warrior is worth more than a 1979. Once you have decided on a specific aircraft, do some further research to determine the differences between different models and production years. (The Aviation Consumer's Used Aircraft Guide is the best source of this information-see the link at top left). In most cases, the next years' model carries a bit more, or goes a little faster, or was produced with a nicer interior. However, this is not always true, and sometimes earlier model years are more desirable than later ones.

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If you purchase a high-time aircraft, keep in mind that it will be a higher-time aircraft when you sell, and you will be forced to discount it accordingly. While your initial investment will be lower, your annual inspections will be more costly, and the aircraft is more likely to require expensive replacement parts as the airframe ages. Unless you're an experience aircraft owner, it's best to avoid these aircraft if possible.

Scanning a few pages of Business Jet Classifieds will not give you a reliable average airframe time for the year/model you're considering- the sample size is just too small to produce any meaningful results. Also, in our analysis of these averages, we found that they sometimes differ dramatically depending on production year! )

While you should strive to locate, and be willing to pay a premium for, a "low-time" aircraft, there are cautions to be observed here also. Aircraft that sit idle for long periods of time are more susceptible to corrosion, rubber rot, and pitting of the cylinder walls and camshaft than those which are flown on a regular basis. If you locate a "low-timer", find out why. Was the airplane flown only a few hours per year on a regular basis, or did it sit idle for years (as in an estate settlement)? Examine the logbooks- the airframe time is (almost) always entered at each annual inspection. Simple subtraction will tell you how many hours this plane flew each year.

Total time is one of the items you should specifically ask your pre-purchase inspection mechanic to verify, as errors in addition are quite common in aircraft logs. Check the books for the installation of a new (or used) tachometer or hour meter, and cross-check the engine log entries with the airframe log.

Your engine is the single most valuable part of your aircraft in more ways than one. For appraisal purposes, average engine time is considered to be 45% of the recommended TBO. Added value is awarded for lower time, and deductions made for higher time. Additional value is added for new, factory overhauled and remanufactured engines, and for those engines overhauled by nationally recognized facilities.

There are, however, other factors to be considered when examining engine time and value. For practical purposes, an engine approaching TBO is considered to be "runout" by most buyers. (No matter how enthusiastic the seller, he is probably the last person to buy an aircraft with similar engine time!) There is nothing wrong with buying an aircraft with a "runout" engine, as long as it is appropriately priced. In fact, some people prefer to do it this way in order to start with an engine that they, and they alone, have operated.

At the other end of the engine spectrum are those units that are "0 SMOH." The question to ask here is "By whom?" An overhaul by a shop with a good reputation is your best (and only) guarantee against future problems and will make your aircraft easier to resell. Find out what the warranty is, and whether it is transferable to a new owner.

You may also find an engine that has been overhauled by an individual mechanic or a small, unknown shop. While this in itself should not be grounds for refusing the aircraft (especially if everything else meets your requirements), you should pay special attention to its examination during the pre-purchase inspection. Find out if the engine was overhauled to "new" or "serviceable" specs. (Some "field" overhauls can be better than the big shops.) If you go with such an engine, you may wish to choose one that has a few hundred hours on it, and have your mechanic scrutinize it and the appropriate logbook entry. Any time an engine has been overhauled prematurely, look in the airframe log during the same time period for any major repairs that could indicate a hidden damage history.

If the aircraft you're examining has a "first-run" engine that has never been overhauled, beware! All engines deteriorate when they're not operated on a regular basis- in fact both Lycoming and Continental consider their engines need an overhaul every 12 years, whether they've been run or not! That 1400 hour Skyhawk may not be such a bargain when it needs a major overhaul 100 hours later!

In 1975, it was a snap to determine the average avionics package. However, as the fleet ages, and older aircraft are equipped with the latest avionics, the "average" package has become the exception rather than the rule. The modern avionics package now represents a significant percentage of the aircraft value, and should be properly calculated as such.

Be wary of any price guide that includes an "average" avionics package in the average retail value. First, you'll have to determine exactly what that package consists of. Secondly, if you've replaced that old Cessna nav/com with a new digital KX-155, you'll need to first subtract the value of the old unit, then add for the 155. If the entire original package has been upgraded, the odds of an accurate appraisal are slim indeed.

A note here about avionics: most buyers are looking for an IFR radio package, even if they're not instrument rated. If you're one of these, avoid the temptation to buy a plane with VFR radios (for a lower price) and then add your own. Remember that the instant you install that brand new KX-165 in the airplane, you now own a USED KX-165. (Just like driving a new car off the lot!) The person who eventually buys your plane will care little about the age of the radio- his major concern will be "Does it work?". Be patient and keep looking until you find what you want- it will be easier to re- sell, and save you lots of money in the meantime. (We recommend you review the page "Avionics Values" in the library list above).

One note of caution in regard to GPS units- many owners do not understand the difference between "certifiable" and "certified". When you install that WhizBang 500 IFR certifiable GPS in your aircraft, you may not use if for IFR flight until it is certified in that aircraft. This certification requires either an STC or FAA form 337, as well as an FAA approved flight manual supplement specifically for this unit in a particular aircraft (as designated by N number in the supplement). The cost of doing this can run from $2,000 up, and adds considerable value to the panel. Don't be fooled by paying too much for an installed "certifiable" unit- ask to see the paperwork.

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Airframe mods and equipment can add significant value to any aircraft. Such things as long range fuel, engine pre-heaters, speed brakes, air conditioning, intercoolers and 3-blade props all add value. Equally important, however, are the financial repercussions of lacking equipment usually considered as standard for that aircraft. For example: if most 1978 Cessna 414's have full de-icing equipment, and yours lacks boots, it will result in a very substantial deduction in value.

Often the seller will emphasize the fact that he just installed new mags, new battery, etc. Don't get carried away by these items- a new battery or magneto may be nice to have, but replacing these items is really only routine maintenance, and a normal part of the cost of ownership. A wise buyer might deduct value for a magneto that needs replacing, but would never add value for one that works- it's supposed to!

If you're faced with assigning a value to a mod or equipment item without a guide, here's the acid value test: Picture two identical aircraft on the ramp. They have the same airframe & engine times, avionics, paint and interior. The one without the widget is priced at $35,000. How much extra would you pay for the one with the widget?

If you were buying a used car, you would hardly expect it to look like it did when it rolled off the assembly line. The same is true of a used aircraft. It can cost anywhere between $5,000 and $9,000 to re-paint the average four-place plane, and if you want one that looks like new, you'll have to pay the price.

One of the most common buyers' blunders is to believe that the appearance of an aircraft is an indication of the overall care of the previous owner. While there are seemingly logical reasons to make this assumption, and it may be true in certain cases, it ain't necessarily so! Just as in the used car business, a smart seller will "Puff up" his airplane for the sale- this may include a quick and cheap paint job for the purpose of covering up defects.

The base "average" aircraft is assumed to be in average condition both inside and out. This means the aircraft will show the same signs of normal wear and tear that similar aircraft of its age and flight time will. Most individuals and dealers use a 1-10 scale to rate the paint and interior, with a quot;10" being the way it looked when it rolled out the factory door. Over the years the "1-10" scale has been so seriously corrupted as to be meaningless.(When was the last time you saw a plane represented as a "3"?)
At BJC we like to use the 1-5 Scale. 1 being the best and 5 being the worst.

In today's market, using the 1-5 Scale. a "3" is more likely to reflect the average. Financial adjustments are made over or under this average condition.

Older aircraft have often been re-painted. If yours has been, look closely- did they paint over the screws because they were rusted? Were all rubber seal strips masked off? Were the control surfaces rebalanced? And finally, is the paint job entered in the logbooks? A logbook painting entry shows conscientiousness on the part of the owner and the paint shop.

Finally, unless you're buying an acrobatic or racing aircraft, avoid the custom paint scheme. An upgraded scheme is common and usually acceptable to most buyers, (A 1980 scheme on a 1970 airplane, for example), but the majority are very conservative. Even though the scheme may be striking and well executed, it may cause you grief and delay when reselling.

Expect an average amount of wear on most aircraft. Do a complete and careful interior inspection- inspect not only the seats, but the carpet, side panels, and headliner (this is one part of the interior you do not want to replace!).

Besides normal wear, look for fading -- aircraft parked in sunny climates will frequently show serious color discrepancies on one side of the interior. Examine all of the plastic mouldings and parts, as they tend to become brittle, discolored and cracked over time. Look for water stains on the headliner and rug -- these could be a sign of a leaky window or door seal. While you're inside looking out, check each of the windows, front and back, for hazing, crazing and cracks. It's best to do this outside on a sunny day. Inside a hangar, all glass looks good.

The condition of the avionics and instrument panel should also be closely inspected. While it is possible to replace avionics face plates and panel covers, it is very expensive. Pay particular attention to the glare shield, as it is difficult to replace without removing the windshield on most aircraft.

Everyone has his/her own level of comfort with the appearance of an aircraft, and after you find one that suits you, be sure it's fairly priced. Bear in mind that typical rug replacement for a four seat aircraft will cost around $300-$500 (without installation), and complete interiors can go as high as $4,000. The cost of interior work tends to vary greatly from state to state, and if it's inexpensive at your airport, you may want to take advantage of the discount a seller will give for a shabby interior, and have it re-done to your taste. Refurbishment costs are one of the few costs usually returned at the time you sell the aircraft.

So much of an aircraft's value is contained in its' logbooks that courts have ruled logbooks to be an integral part of the aircraft. Unless you have experience in the marketplace, you should probably avoid any aircraft without logs that are original and complete. Beware the logbook that begins "Original logs lost, total time (or engine time) certified to be...", or "reconstructed from work orders." No matter how complete the records might be, they are still not original. Think long and hard before buying an aircraft without complete and original logs (with even one missing page): no matter what price you pay, it will take much longer to find a buyer later on.

If the aircraft logs are not complete, you can no longer be sure of the total time. Worse still, an aircraft with missing airframe logs may have been the victim of a major damage accident. And if the engine log is missing, you must assume the engine to be in need of a major overhaul.

Have your mechanic examine the logs during the pre-purchase inspection: it's what you pay him for. You will want to verify the airframe time, engine time, engine and airframe serial numbers, production year, and damage history (or lack thereof). In addition he should check the annual date, static and/or transponder checks, and AD notes. Close examination can also reveal something of the aircraft's history: where it lived, whether or not it was used as a trainer, etc.

Damage history is probably the second most misrepresented item of an aircraft's' specifications (airframe/engine hours are first), and while you should make sure to ask the seller if his aircraft has ever been damaged, you may or may not get a correct answer. Often the current owner may honestly not know of a previous accident, and his mechanic has never noticed the repair. And sometimes the repairs are "hidden" in technical terms in the middle of a scribbled annual inspection entry.

Damage repairs are supposed to be entered in the logbooks, but it is a rare entry that reads as clearly as "Left wing leading edge repaired after bird strike." The cause of the damage is usually not apparent, and an entry may say as little as "R&R Piper part #28- 675732". Unless you know that this part number is the entire wing, and that "R&R" means Removed and Replaced, you may unknowingly buy a damaged aircraft.

The repairs required to fix major damage, such as a serious landing accident, requires the filing of FAA form 337- "Major alteration or repair"- with the FAA. A copy of this form is supposed to be kept with the aircraft records. If you become aware of a damage history from the logs, look for the accompanying 337, as it will usually contain a more complete detailed description of the repairs involved. (You can also check the NTSB dtabase for accident reports- see the FAA Forms in our BJC library).

The amount of a damage deduction is dependent upon several factors, including the severity of the damage, the type of aircraft (it's usually more important to an A36 owner than a J-3 owner), and the age of the repairs. As the years and airframe hours accumulate, the curse diminishes, but for a major damage incident it never dissipates entirely.

Your mechanic should be looking for signs of damage when he examines the logs during the pre-purchase, and should examine the aircraft with this in mind as well, as there are occasions when repairs are made with no entry.

If this aircraft gets a clean bill of health at the pre-purchase, you could feel very comfortable paying even the full asking price. Of Course negotiating never hurt anybody !

We hope you've enjoyed this short aircraft evaluation course.