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Going to buy or sell an aircraft by yourself is a bit like flying in fog without instruments. You get along, but it is painfully slow and nerve-racking to not know what awaits around the corner.

And that is why choosing the right aircraft broker makes all the difference. They are your copilot from beginning to end sale.

However, brokers possess an different qualities. In this guide, I'm going to go over exactly how to choose the most ideal one for you.

What Do Aircraft Brokers Do?

Think brokers like matchmakers between aircraft buyers and sellers. They pair the right aircraft to the right new owners.

  • Finding sweet rides in your budget that match your mission
  • Arranging test flights to experience planes firsthand
  • Negotiating purchase terms and price between buyers and sellers
  • Handling tedious paperwork like contracts and title transfers
  • Marketing your aircraft smartly when you want to sell
  • Smartly market your aircraft when you are ready to sell

In other words, brokers manage every little thing from scratch to complete, thus you do not undergo the frustrations as well as headaches of purchases. In my opinion they were worth every single cent of their commission fees!

Aircraft broker selling the first G400 charter in europe at an aircraft event

Why Should I Use an Aircraft Broker?

Yes, you pay brokering companies a commission, but the fact that they are fully aware of the handling and many ties to big stakeholders in this sector means you get an easier deal.

There are some major benefits brokers provide:

Access to More Listings - Brokers draw on inventory you would never know about from public ads. The more options you have, the greater your chances of finding the aircraft for you.

Market Knowledge - Brokers know what they are talking about when it comes to pricing trends, common defects, upgrade values - you get the gist. It aids them in extracting the most advantageous deals.

Paperwork Pros - Brokers tackle all the contracts, title transfers, registrations, escrows - the dull bureaucratic things that us pilot types despise.

Save Time - Let your broker pound the pavement finding your perfect bird whilst you just enjoy flying!

How Exactly Are Aircraft Brokers Paid?

Aircraft brokers make their money by charging a commission on successful sales. Typical rates are:

  • Piston planes - 5-10% of the sales price is common
  • Turboprop aircraft - Commission of 7-10% of the sales price
  • Business Jets - 2-4% of the sales price, often with a minimum fee

Those planes with pistons also get a higher commission percentage, as they cost less dollars overall. If you own a corporate jet, prepare to pay a $15,000 fee or more.

Typically, this means the seller pays 100% of the broker commission at closing. However, on orders worth more than $1 million some brokers have begun to divide the fee between buyers and sellers in an effort to draw business.

 

How to become a private jet broker

 

Types of Aircraft Brokers - Pros and Cons

One of the things to be noted is that not every broker is like this! These are the main varieties and differences:

Independent Brokers Independent brokers consist of single agents or small boutique firms.

Pros - Fully customized service, use of technology and responsiveness

Cons - Fewer resources and no access to smaller planes than larger companies

Broker Dealers Broker dealers are essentially large brokerages with numerous agents and branch locations.

Pros- Broader portfolios and large marketing budgets

Cons - Some of the cons include more impersonal experience, to possible disputes on listings.

OEM Brokers OEM brokers sell new aircraft by working directly with the manufacturers of the aircraft.

Pros - Check Out The Newest Models Similar To Joyriding Around The Factory!

Cons - Limited to certain makes of automobiles though not previously owned aircraft

Online Listing Networks Internet listing networks link buyers and sellers without any additional one-on-one assistance.

Pros - Huge reach and networking ability

Cons − You are on your own for negotiating, paperwork, particulars

My Best Tips on Selecting The Right Broker

So here are the main traits to look for in your broker wingman;

Excellent Reputation - Look for references and reviews at length. Billion in planes changes hands. These deals are no joke!

Specialization - Many brokers specialize in one particular model, be it jets, pistons or helicopters; choose one that is aligned with the aircraft you are looking to buy or sell.

Aviation Background - Whether the broker was an ex pilot or mechanic, brokers know these complex assets inside and out.

Great Contact List - For a broker, a Rolodex of buyers and sellers is priceless.

Sales and Turnover - It is a sign of success if the sales volume is high and the product turnover takes place quickly.

Prompt Communication -‍ Aircraft transactions are fast and furious! If you are not able to get a reply from your broker immediately, then it would be better if you find one that responds lightning fast.

Thoroughly research at least three brokers before making a decision and beware of salesmen claiming to be brokers. This is one wingman pick you don't want to fuck up with!

Which Places To Seek Reputable Aircraft Brokers

Need the brokers you can trust? These associations link professional brokers across the globe:

    • NARA - National Aircraft Resale Association - United States brokers
    • EBAA - European Business Aviation Association - European brokers
    • IADA - International Aircraft Dealers Association - Worldwide network

The fact that a broker is a member of the top regulators means they are likely to follow good practices in most cases. When searching for brokers, check association sites.

 

EBAA airplane event

 

How To Work With Your Broker

After picking your broker, use the following suggestions to ensure it all goes smoothly:

  1. If you want them to find matches efficiently, share your budget and aircraft needs concisely. At least you're not wasting time by being vague.
  2. Lean on their expertise! They notice things you would never see, plane conditions, values, flight profiles - good brokers do their research.
  3. So, whilst you can only build your shortlist of aircraft with a few key components, don't hold back on asking hundreds of questions - brokers are repositories for knowledge.
  4. Transparency ensures they will represent your best interests in deals.
  5. Clarify timelines so you're on the same page for the sales process. Aircraft deals can move quickly!
  6. Check in regularly for updates so there's no gaps in communication, especially as offers progress.

Brokers are working for you, so never be afraid to use their skills for the best experience!

Take Action!

It is high time to select the best possible aircraft broker that suits you. Research, reach out and team up with a broker you have a synergy with. Your results will ultimately reflect in the deals you close.

The right broker helps you fly as high as whatever you want to buy. Now, do what you do best and get your aircraft shopping started!