When an organization or individual needs to find aircraft for sale, the question that they have to answer is whether to approach an aircraft dealer or an aircraft broker.
For making this decision, they should be clear about the meanings of these terms, and the difference that exists between an aircraft dealer and an aircraft broker. There exists a thin line between the two.
Let us understand the role and tasks that both of them do so that we can decide who is the right person to contact for the aircraft deal.
Aircraft Brokers
Aircraft brokers, working either for a company or in their own individual capacity, deal with those who are buying or selling aircraft, business jets, or turboprops. They start the negotiations from the earliest stages of the deal and are responsible for completing the transaction between the buyer and the seller, whose representatives are usually present during the process. Aircraft sales representatives are similar to brokers.
Aircraft Dealers
Aircraft dealers directly buy aircraft and the buyer makes a purchase transaction directly from them, without the interference of a third party.
When you want to buy or sell an aircraft, turboprop or business jet, you should take the advice of experts who will assist in completing the most profitable deal for you without conflicting interests.
Choosing an Aircraft Broker
A prospective buyer should seek references before using the services of aircraft brokers. These could be available from older clients. They should also verify that the broker represents a reputable firm. They should be well versed in negotiating the various detailed points of the contract.
An aircraft broker should also have good knowledge about the aircraft’s technological aspects. They should be conversant with the psyche of buyers and sellers and their agents’ teams. The experience of the broker in this particular area also counts a lot. It can help reduce some costs and time involved in the process. Our aim should be to achieve a hassle-free and transparent deal.
Duties of an Aircraft Broker
The duties of an aircraft broker differ, depending on whether the broker is working for the buyer or the seller.
The Seller’s Broker
The job of a seller’s broker is much more intricate than what appears at first glance. When they are working for a seller, they should be able to look for prospective buyers. They must also be clear about the customer’s needs. Working for the seller, they should try to get the maximum price from the aircraft for sale.
They need to make a proper evaluation of the aircraft, for which they should be aware of the latest prices of various types of aircraft. They should be able to discuss the terms and conditions of the contract with both parties and their representatives. They are also responsible for arranging the inspection of the aircraft by buyers. They are physically present at important events during the transaction process, from initial discussions to the completion of the transaction.
The Buyer’s Broker
The buyer’s broker must be fully aware of the requirements of the buyer. They should be active, right from the initial stages of the deal. They are responsible for protecting the interest of the buyer. They help in choosing the right aircraft, satisfying the needs of the customer. A broker’s expert advice can facilitate the correct selection of aircraft and a smooth transaction. For this, they should scan the market to identify all aircraft available on sale or which may be available shortly. After this exercise, they should maintain a shortlist of aircraft, sellers, etc.
Usually, some of the duties of the buyer’s broker and the seller’s broker overlap. It helps both types of brokers to have good experience on the other side too. Both types of brokers should understand and avoid the risks involved in the deal. Understanding the duties of aircraft brokers is essential for making the correct choice for ensuring a profitable deal.
Choosing an Aircraft Dealer
If you decide to bypass the services of aircraft brokers, you may have to deal with dealers directly, which may be a daunting task. You will have to perform the duties of the brokers mentioned above, all by yourself. If you feel confident about shouldering the responsibility of such a big purchase, you may contact the dealers directly. Be sure to consider the dealer’s reputation and previous track records from past clients.
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