Banks that finance general aviation aircraft look at many factors when determining aircraft values.  Banterra Bank utilizes the two primary industry price guides: Aircraft Blue Book and/or Vref. Subscribers  simply locate the year, make and model of a desired aircraft, add the airframe total time and engine time(s) along with options and upgrades (i.e. updated avionics, new paint & interior, airframe modifications and updates). Items that lower aircraft values include prior damage history, missing logbooks, poor paint and interior condition, prior or current non-USA registration in some cases, major maintenance events, FAA airworthiness directives and inspections coming due, and general demand for particular makes and models. The “Average Retail Price” prior to adds and deducts within the price guides is based on an aircraft have a “Fleet Average” total airframe time and mid-time engine(s) with excellent paint & interior already factored in.  Adjustments as noted will add or subtract to base values.  Price guides are just that, a general guide.

Due to recent spikes in older aircraft values, because of manufacturing slowdowns, fewer general aviation being produced, and higher than usual historic demands, lenders have noticed many, once less desirable and/or older aircraft being refurbished with items such as upgraded avionics, new paint and interiors, upgraded engines, etc.  In general, the total cost for an avionics panel upgrade includes anywhere from 30% to 40% of labor costs which generally is deducted from recent installations.  After a few years pass, the values of such upgrades may be approximately 50% of initial costs.  Similarly, new paint & interior s depreciate in total initial cost value by approximately 10% annually as they age. Engines, however, hold their value upon overhaul and depreciate more predictably by an hourly rate as they are flown and build time.

In summary, the Banterra Bank experienced aircraft lenders look at price guides, industry and economic market conditions, comparable aircraft listings and recent sales data if available, age and desirability of collateral, maintenance issues, damage history, depreciation scenarios and historic market fluctuations as part of their final value determination.