Aircraft appraisal and/or valuation complexity is due to the substantial cost of both new and used aircraft, and the many variables that can affect the value of used aircraft.

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Engine Hours:  The number of hours that the engine(s) have been flown has the largest impact on aircraft resale value. Time between overhaul (abbreviated as TBO or TBOH) is the manufacturer's recommended number of running hours or calendar time before an aircraft engine or other component requires overhaul. Aircraft engines need to be overhauled at certain intervals, just like your car engine needs a tune-up. As the cost of the overhaul is significant, the closer the engine hours are to the next overhaul, the lower the value of the aircraft. A high number of engine hours are not necessarily bad if the engines have been recently overhauled.

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Use and Aircraft Maintenance Records:  Maintaining good records that demonstrate regular use and maintenance is extremely important. Regular use of the aircraft helps keep seals and other engine components lubricated and in good shape. Scheduled maintenance helps to keep the aircraft operating, and demonstrates the owners’ commitment to safety.

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Installed Equipment:  Just like optional equipment in a car, installed equipment in an aircraft affects the value of an aircraft. Some examples include avionics, air conditioning, deicing gear and interior equipment. The age of installed equipment can influence and result in higher maintenance costs. The value of installed avionics also depreciates quickly as manufacturers are constantly producing "new and improved" systems and components.

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Airworthiness Directives:  Also referred to as “ADs,” these mandatory directives are issued by the Federal Aviation Administration (FAA) for safety reasons and require aircraft owners to comply within a certain time period. Evaluate an aircraft’s AD history, not just for the number of directives, but also the nature of the directive and whether they require recurrent actions or are “one-time compliant.” Make sure the logbooks show compliance with all applicable ADs. Some ADs compliance cost can be repetitive and significant to the cost of ownership. Incomplete or missing log books can decrease value by 10% or more.

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Damage History:  Major repairs to the fuselage, wings, empennage, landing gear and other structures can significantly affect the value of an aircraft. The type of accident, nature of the damage and the degree to which major aircraft components are involved factor into valuation. Any aircraft with a damage history should be closely scrutinized to make sure it has been properly repaired in accordance with the FAA regulations and recommended practices. Damage history typically decreases the value from 5% to 10%.

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Paint/Interior:  Similar to used cars, sometimes a new coating of paint can 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, condition and operation. Done properly, paint and interior restoration enhance the value of used aircraft. The cost of painting or replacing aircraft interiors can be substantial.