Broker / consignment test flights

[alaskaflyer]

So here's a question: I'm still pontificating over what to do with my plane which is still in Fairbanks. For the heck of it I contacted a couple of brokers. For my plane they both want 8%. Ok. Maybe. But neither will assist with demo/test flights with prospective buyers nor will they make any arrangements for a third party to do so. Totally my responsibility.

Yes I know there are insurance issues to be worked out, but that isn't insurmountable. So what exactly do I get for several grand in these days of electronic advertising much of which is free? A free tie-down space?

Is this typical?

 

[alaskaflyer]

Let's not forget those cool "for sale" prop covers. That should be worth at least 2% of gross sale alone

 

[wabower]

Is it advertised now? Is the phone ringing?

 

[bbchien]

Why can you not fly it back to the lower 48 for 1/4 of that 8%?

 

[alaskaflyer]

Why can you not fly it back to the lower 48 for 1/4 of that 8%?

I may. But if I choose to sell it instead of keeping it I believe the better market for this particular make, model and example is where it is now. But I need an agent not a professional marketer Surely some brokers demo planes?

 

[craigvince]

Wow. Interesting post.

I am the president of a large aircraft consignment brokerage and dealership. When we take in a plane on consignment, our standard commission is 6% or less, depending on the value of the airplane. This is collected at the time of sale. We don't collect fees up front, with the exception of doing a title search.

As for demo flights, it is a little tricky. First of all, airplanes are not like cars. You don't need to "test drive" an airplane. If a customer comes to me and wants to put down a deposit and sign a purchase agreement, we will certainly arrange for a demo flight as part of the pre-purchase inspection. There is no reason to waste flight hours, time and fuel for tire kickers.

That said, we carry a blanket insurance policy that covers our customers' planes for the purpose of conduction demo flights, ferry flights and post-maintenance flights (we also have a service shop). Most brokers smaller brokers do not have this kind of coverage, but there are a few that do. When choosing a broker, be sure to ask if your plane is insured.

Logistically speaking, if you keep your plane at your home airport in your hangar, it would be very difficult for your broker to show the plane. You would have better luck selling your plane if you take it to your broker's airport and leave it there.

Sorry for the lengthy post, but trying to give a different perspective.

Craig Vincent
The Plane Exchnge

 

[marcoseddi]

Sounds about right.. They do have to make their money as well, I'm sure selling a plane and dealing with the tools that approach a for sale plane is probably worse than a car. I was selling my Jeep 4 door and every creapy crawler zombie in the world wanted to low ball and come drive it.. I'll give you half cash!!! Like I'm going to buckle because it CASH.. Throw it on ebay I've done great on ebay and its a great marketing tool. Leave your number and you'll get calls if its a good plane, or even if its not. TAke some time take pictures and you'll be great on there.

 

[alaskaflyer]

Wow. Interesting post.

I am the president of a large aircraft consignment brokerage and dealership. When we take in a plane on consignment, our standard commission is 6% or less, depending on the value of the airplane. This is collected at the time of sale. We don't collect fees up front, with the exception of doing a title search.

As for demo flights, it is a little tricky. First of all, airplanes are not like cars. You don't need to "test drive" an airplane. If a customer comes to me and wants to put down a deposit and sign a purchase agreement, we will certainly arrange for a demo flight as part of the pre-purchase inspection. There is no reason to waste flight hours, time and fuel for tire kickers.

That said, we carry a blanket insurance policy that covers our customers' planes for the purpose of conduction demo flights, ferry flights and post-maintenance flights (we also have a service shop). Most brokers smaller brokers do not have this kind of coverage, but there are a few that do. When choosing a broker, be sure to ask if your plane is insured.

Logistically speaking, if you keep your plane at your home airport in your hangar, it would be very difficult for your broker to show the plane. You would have better luck selling your plane if you take it to your broker's airport and leave it there.

Sorry for the lengthy post, but trying to give a different perspective.

Craig Vincent
The Plane Exchnge

Interesting, thanks. I agree that demo flights for every pilot who walks through the door are neither necessary nor desirable. But most pilots I know would not purchase an airplane (nor necessarily lock themselves into any agreement) without either getting it in the air, or having someone else evaluate it in the air on their behalf. Whether this is sensible is almost beside the point

Then add the point that you brought up -the plane may need to be ferried somewhere for an inspection etc. and then you might see my wonderment that someone would want any percentage above, say, 2-3% if all they are providing is simple marketing and paperwork assistance. I need someone to shepherd a sale through, not just advertising and FAA doc processing.

But Alaska is special in many ways, one of which being that it is a hostage market despite its size.

 

[N747JB]

Is there someone at the field where the airplane is that will help you? Maybe the local FBO, your trusted mechanic or a pilot friend? I can't comment on broker's commission, I think it varies on the price of the plane, I sold my Citation in 2007 for a very low %, actually a flat fee, plus I paid for the ads, it all ended up under 2%. If it's a plane that's popular in AK, and you think it will bring more, it's better to sell it there with some help, I don't think it has to be a broker if you have someone you can trust to oversee it for you. Just about everything is done via email these days, except the actual showing and delivery.

 

[alaskaflyer]

Is there someone at the field where the airplane is that will help you? Maybe the local FBO, your trusted mechanic or a pilot friend? I can't comment on broker's commission, I think it varies on the price of the plane, I sold my Citation in 2007 for a very low %, actually a flat fee, plus I paid for the ads, it all ended up under 2%. If it's a plane that's popular in AK, and you think it will bring more, it's better to sell it there with some help, I don't think it has to be a broker if you have someone you can trust to oversee it for you. Just about everything is done via email these days, except the actual showing and delivery.

Yeah, both had a sliding scale percentage based on the likely sale value of the airplane. They both wanted 8% on something that would likely sell under $40k.

I'm looking into getting help from someone else. Prepping and flying in winter complicates the issue - need someone who I can really trust.

This is probably all karmic influence to have me simply keep it