Ready to Upgrade Your Aircraft? Read These 5 Helpful Tips
We’ve heard from numerous business jet owners that 2018 is the year to replace your aircraft. The business jet market is skewing towards buyers with lower prices and more variety. Because of this, many current jet owners are upgrading to larger, newer pre-owned jets. However, when you’re considering replacing or upgrading your aircraft – there are quite a few important factors to keep in mind:
Consider the Ownership of the Aircraft – You probably analyzed the ownership structure when the aircraft was first purchased. These decisions were based on regulatory rules, tax concerns, and liability factors. So, when purchasing the replacement aircraft, it is wise to assess the ownership structure and see if anything needs to shift or change. Has the usage of the aircraft changed so that the original ownership roles no longer apply? Have there been changes in state or federal tax laws so that a different ownership structure would be applicable? These are all important
Consider Taxes – If selling your current aircraft will result in a taxable capital gain, then your should definitely consider the possibility of structuring a like-kind exchange or a reverse like-kind exchange. Not to mention, both the sale of the current jet and the purchase of the replacement jet can generate sales tax liability in the state where the sale is closed and in the state where the new aircraft is hangared. If property taxes are collected on the aircraft where it’s based, property tax should also be addressed in your considerations before the purchase of the replacement aircraft.
Consider the Timing – Take a moment to decide if it is more important to have the proceeds of the sale before making the purchase for a replacement aircraft or if it is more important to never lose access to either the current aircraft or the replacement aircraft. Of course the ideal scenario is that you don’t need the proceeds from the sale in order to purchase the replacement. So, if that’s the case, the right replacement aircraft can be purchased whenever you come across the perfect fit for your needs. But, if you need the proceeds in order to purchase the aircraft, you should understand the time it takes to sell your current aircraft. But If you choose the best aircraft broker and your current jet is in great condition you might not have to wait very long at all. At Miami Jet, we specialize in getting your business jet sold for the highest dollar in the shortest amount of time possible!
Considering the Timeline – You know that there are tons of factors that go into buying and selling aircraft, so having a strict timeline isn’t always a possibility. It’s important to understand this and remain flexible in order to make the entire process much less stressful. There’s no way of knowing exactly how long it will take for your current aircraft to sell or when you’ll find a perfect replacement or upgrade aircraft. Then there are also contract negotiations and inspections to consider. So it’s best to go into the process without and hard deadlines and keep in mind that things can vary greatly from case to case.
Consider Costs and Financing – If your current aircraft is being financed, will the proceeds of the sale cover the amount of the loan? If your new aircraft is going to be financed, does the buyer want to stay with the same lender or take a look at other options? Does the lender charge any early termination fees for the current loan? If so, you’ll need to plan accordingly.
Consider the Aircraft Broker – It’s important to find an aircraft broker or agency that you can trust because usually, aircraft owners use the same broker to both sell their current aircraft and help them purchase their replacement aircraft. At Miami Jet, our dedicated full-time sales team will help you sell your aircraft in the shortest amount of time for the highest possible price! We actively market and promote our inventory, so you can expect to receive only the most serious offers.
Once all of these points are considered, you should be one step closer to deciding whether or not you’re ready to replace or upgrade your current business jet! Miami Jet offers the most trusted, comprehensive aircraft acquisition and sales services, and we’re ready to help you buy or sell your used aircraft! We do it all from initial consultations, to pre-purchase inspections, to closing the deal! Contact Us today to find out how to get started!