Plane Sense
Factors Affecting Resale Value
Know the major factors that affect resale value.
Generally speaking they are:
• Engine hours—perhaps the most common in-
fluence on resale value. The closer an engine is to
its recommended time between overhaul (TBO),
the lower the value. There are many factors that
affect engine health, and a high-time engine is
not necessarily bad. Regular use helps keep seals
and other engine components lubricated and in
good shape.
• Installed equipment—such as avionics, air condi-
tioning, deicing gear and interior equipment.
The most valuable equipment is usually avionics,
which can easily double the value of some older
aircraft. The newer the technology, the higher
the value of the aircraft.
• Airworthiness directives (ADs)—issued by the
FAA for safety reasons. Once issued, owners are
required to comply with the AD within the time
period allotted. It is important to look at the AD
history of an aircraft and ensure the logbooks
show compliance with all applicable ADs. ADs
are discussed in greater detail in chapter 9.
• Damage history—it may be difficult to locate
a complete damage history for an aircraft. Any
aircraft with a damage history should be closely
scrutinized to ensure it has been properly
repaired in accordance with the applicable Title
14 of the Code of Federal Regulations (14 CFR)
parts and recommended practices.
• Paint/Interior—as is the case with homes, paint
can be used to give “tired” aircraft a quick face-
lift. Check new paint jobs carefully for evidence
of corrosion under the surface. Interior items
should be checked for proper fit and condition.
Overhauls
Be careful of the terminology used to describe
engine condition. Do not confuse a top overhaul with
a major overhaul, or a major overhaul with a factory
remanufactured “zero-time” engine. A top overhaul
involves the repair of engine components outside of
the crankcase. A major overhaul involves the com-
plete disassembly, inspection, repair, and reassembly
of an engine to specified limits. If an engine has had
a top or major overhaul, the logbooks must still show
the total time on the engine, if known, and its prior
maintenance history. A “zero-time” engine is one
that has been overhauled to factory new limits by the
original manufacturer and is issued a new logbook
without previous operating history.
Aircraft records
Aircraft records maintained by the FAA are on file
at the Mike Monroney Aeronautical Center in
Oklahoma City, Oklahoma. Copies of aircraft records
are available for review in CD format or paper. For
information on ordering and costs, contact the FAA
Civil Aviation Registry Aircraft Registration Branch
(AFS-750). Copies of aircraft records may also be
requested online. Visit www.faa.gov and select the
“Aircraft Registration” link. There may be other
records on file at federal, state, or local agencies that
are not recorded with the FAA. AFS-750 contact
information is in the FAA Contact Information
appendix on pages A1–A2 of this handbook.
Make sure the following documents are available
and in proper order for the aircraft:
• Airworthiness Certificate
• Engine and airframe logbooks
• Aircraft equipment list
• Weight and balance data, placards
• FAA-approved Airplane Flight Manual (AFM)
and/or Pilot’s Operating Handbook (POH)
m CAUTION: Missing documents, pages, or
entries from aircraft logbooks may cause significant
problems for the purchaser and reduce the value
of the aircraft.
Aircraft title
The Federal Aviation Act requires the FAA to main-
tain a recording system for aircraft bills of sale,
security agreements, mortgages, and other liens.
This is done at AFS-750, which also processes
applications for, and issues, aircraft registration
certificates. The two systems are linked together
because you must prove ownership in order to
be entitled to register an aircraft.
“Clear title” is a term commonly used by aircraft
title search companies to indicate there are no liens
(e.g., chattel mortgage, security agreement, tax
lien, artisan lien) in the FAA aircraft records. Title
searches for the aviation public are not performed by
AFS-750; however, the aircraft records contain
all of the ownership and security documents that
have been filed with the FAA.
AFS-750 records acceptable security instruments.
In addition, some states authorize artisan liens
(mechanic liens). These also need to be recorded. Be
sure to check your state’s statutes regarding liens.