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New:  Price Matching - Check out the details!


Aircraft Financing Made Easy!

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Aircraft Financing Articles

InsideBanking is publishing three articles that I have written about aircraft financing and the importance of appraisals.

Select the links below to read them.

Article 1

Article 2

Article 3


A Question for the Appraiser:

 

Are Damage History and Missing Log Books Serious Concerns When Appraising Aircraft?

 

Would you like to see one of YOUR questions answered?  Send us your question and you may see it in the next cycle!


 

Need Immediate Assistance?

 

 

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Desktop Appraisal reports

Desktop Aircraft Appraisal Reports are popular and requested from time to time by prospective clients.  Before ordering a Desktop Appraisal Report, consider the objectives and how a desktop appraisal may or may not meet your needs.

 When thinking about the aircraft appraisal industry, understand what constitutes a "desktop" appraisal report because reports are NOT clearly defined in the aircraft appraisal industry which is unregulated.  The term "desktop appraisal" has been taken from the real estate industry and those real estate reports may have some degree credibility due to the wealth of publicly available information easily obtainable on-line.  In the aircraft appraisal industry however, there are no public databases of aircraft selling prices and there are far more variables to consider on each aircraft all of which impact that specific aircraft's market value.

For the purposes of this website and Plane Data, Inc. the term "desktop appraisal" is taken to mean that the appraiser of record, who is being asked to sign the report, has not physically examined the aircraft, reviewed the log books and maintenance records, nor has there been any inventory of the aircraft and equipment other than by a third party.  Those critical aspects of the analysis have been left to someone else who may or may not have a direct interest in the outcome of the appraisal results.  The third party in question may have never visited the aircraft in question or reviewed any of its records.  Furthermore, they may have inadequate training and experience to do so.  As a result, the "desktop appraisal report", when applied to aircraft, means that the appraiser's analysis and conclusions will be based on unsubstantiated data.  Therefore, the "model" being evaluated may have little or no relationship to the subject aircraft and any resulting conclusions.  Others may have a different definition of course.

Let's now focus on what the purpose or objective of the appraisal report might be?  In many cases, the objective is to use the report as the primary basis for a lending decision.  If this is the case, the bank/banker needs a credible, reliable opinion of value that can be supported by the appraiser of record if questions arise (and they do).  There should also be an analysis of the risk the bank is undertaking with the collateral in question.  This credible, reliable opinion of value is extremely important on older aircraft.  However, when the source information is provided by a third party, the final results of the appraisal report can neither be credible or reliable for aircraft financing purposes.  Nor will this type of report identify any risks that may be present because of the unreliable nature of the third party information being provided.  As a result, the desktop appraisal report by its very nature does not meet the objective as an instrument for making a key lending decision.

In other cases, the objective is to keep the charges to the customer low or to proceed with the financing project as quickly as possible.  In these situation, credibility and reliability become secondary concerns because this may be a "good customer".  If cost is the key concern, there are individuals and websites which offer desktop appraisal reports for $25 and possibly less.  Of course, these reports contain one or two pages and skip over critical pieces of information but regardless, they are cost effective and those individuals or websites should be sought out as Plane Data, Inc. is unable and unwilling to provide reports for that price point.

The last case involves the bank's need to develop a predetermined or specific number so that the deal may move forward or to misrepresent the collateral in some manner.  Desktop Aircraft Appraisal Reports can certainly meet this objective but doing so begins to border on bank fraud or fraudulent reporting.

Objectives of plane data, Inc.

Since 1992, Plane Data, Inc. has built its business around ethical behavior and providing clients credible, reliable Aircraft Appraisal Reports.  To meet this objective, field visits are required to complete the necessary research and obtain data essential for the report.  Simply stated, there are NO shortcuts which meet the standards of providing a credible, reliable opinion of value.  ANYTHING less is unprofessional.  Plane Data, Inc. will certainly discuss "preliminaries" with clients to help them understand if the subject aircraft is valued reasonably but any preliminary discussions should not be used as the sole basis for a lending/purchasing decision nor should any discussions be considered to be a formal appraisal of a specific aircraft.   To obtain the assistance you need, call us or use this link


latest news


New:  Price Matching - Check out the details!


Aircraft Financing Made Easy!

View the Slideshow


Aircraft Financing Articles

InsideBanking is publishing three articles that I have written about aircraft financing and the importance of appraisals.

Select the links below to read them.

Article 1

Article 2

Article 3


A Question for the Appraiser:

 

Are Damage History and Missing Log Books Serious Concerns When Appraising Aircraft?

 

Would you like to see one of YOUR questions answered?  Send us your question and you may see it in the next cycle!


 

Need Immediate Assistance?

 

 

View Mike  Simmons's profile on LinkedIn  

other information

Call 800-895-1382

Plane Data, Inc.
P.O. Box 1414 Denver, NC 28037
Phone: 800-895-1382 Website: http://www.planedata.com