An often confusing but important factor that can affect your resale value is engine program enrollment.
Engine programs are a great retainer of value for a lot of aircraft models. (Airframe programs are more complicated in many ways, including that they often do not transfer over to the new buyer, therefore they do not provide as much value to an aircraft.) Inspections on engines are infrequent but very expensive. The program accrues a fund based upon usage which typically transfers to the buyer. As a result of this transfer, the buyer can use the program’s fund on future inspections.
For aircraft models that are typically enrolled on engine programs, the consequence of not being enrolled on one is usually a dollar for dollar deduction of the cost to enroll the aircraft on the program. For example, the Challenger 300 series are typically enrolled on MSP. If one is not on the program, the cost of MSP enrolment will need to be deducted from the sale price to entice a buyer to consider it.
However, if your model is not typically on an engine program and your aircraft is on enrolled on one, you will not see a dollar for dollar increase in your price for the enrollment fee. For example, the Beechjet 400 series is not usually enrolled on engine programs. If yours is and you have paid in $400,000, you will not see an increase in $400,000 to your asking price. It will add some value but not the matched figure you have put in.
The bottom line in regards to engine programs affecting resale value is that not being enrolled on a program for a model that is typically enrolled is what will hurt your value.
Blogs are written from real world experience by Colibri Aircraft’s individuals. If you have any questions or comments about the topic of this blog, please feel free to contact our team at enquiries@colibriaircraft.com
