VREF | The Truth About the Aviation Market

← VREF | The Truth About the Aviation Market28 Jul · 24 min

The Jet That’s Worth More Dead Than Alive | EP 49

The Jet That’s Worth More Dead Than Alive | EP 4928 Jul24 min

<p>In this mailbag episode of <i>The Truth About the Market</i>, Jason answers a question from Paul Bordeaux, Chief Pilot at Hargrove Engineers and Constructors:</p><p></p><p>How should a buyer evaluate future demand for an out-of-production business jet?</p><p></p><h3>In this episode, we cover:</h3><p>• The most important question buyers almost never ask before purchasing a used business jet</p><p>• Why today’s aircraft value tells you very little about your eventual exit</p><p>• How to evaluate future demand for an out-of-production aircraft</p><p>• What buyers should consider when comparing older Citations, Hawkers, Learjets, and other legacy jets</p><p>• Why some discontinued aircraft remain desirable while others become effectively orphaned</p><p>• What must remain true for buyers to still want your aircraft five years from now</p><p>• Why the engines become the central story as a business jet ages</p><p>• How two engines can eventually become worth more than the airframe, avionics, paint, and interior combined</p><p>• Why the value equation often begins changing once a business jet reaches approximately 15 years of age</p><p>• Why engine condition and program enrollment become the first questions asked by brokers, appraisers, lenders, and informed buyers</p><p>• How engine maintenance programs such as MSP, ESP, CorporateCare, TAP, and JSSI work</p><p>• Why an engine program is not necessarily about saving money</p><p>• Why the house still prices the maintenance risk correctly</p><p>• What engine programs actually provide: budget stability and protection from catastrophic surprises</p><p>• What it feels like to receive a hot-section or overhaul bill on an aircraft that is not enrolled</p><p>• How engine programs allow aging engines to be treated financially as though they have zero time remaining</p><p>• Why the airframe depreciates while fully enrolled engines can remain financially frozen in time</p><p>• Why engine program status can determine whether an older jet is desirable, difficult to sell, or destined for part-out</p><p>• Why a low acquisition price does not necessarily mean a low-cost airplane</p><p>• Why the cheapest aircraft in a model fleet may carry the greatest long-term financial risk</p><p>• Why future engine events must be included in the purchase decision—not treated as someone else’s problem</p><p>• Why parts availability, maintenance expertise, and manufacturer support can matter more than performance specifications</p><p>• How lawsuits, service disputes, manufacturer decisions, and support interruptions can affect an entire aircraft type</p><p>• Why lenders become more cautious as maintenance uncertainty increases</p><p>• How insurance availability and operating restrictions can change an aircraft’s buyer pool</p><p>• Why a technically airworthy aircraft may still become commercially undesirable</p><p>• How the number of active buyers affects liquidity and eventual resale value</p><p>• Why a strong aircraft today can become difficult to exit when the next generation of buyers wants something different</p><p>• Why installing an expensive upgrade does not guarantee that the market will repay you</p><p>• How to distinguish a genuine value opportunity from a depreciating maintenance liability</p><p>• Why buyers should study fleet trends, transaction volume, days on market, and support infrastructure before signing a purchase agreement</p><p>• Why your exit strategy should be part of the acquisition strategy from day one</p><p></p><p>For accurate, defensible aircraft valuations, residual-value forecasts, operating-cost data, and market intelligence trusted by lenders, insurers, attorneys, operators, and aviation professionals worldwide, visit <a rel="noopener noreferrer nofollow" href="http://VREF.com" target="_blank"><b>VREF.com</b></a>.</p><p>Make decisions based on facts, not feelings.</p><p>Fly safe. Stay smart.</p>