Aircraft Digest (Blue Book)
What you need to know
Have you ever wondered about the market value of your aircraft – or one you are considering purchasing?
Years ago, as an aircraft sales manager my copy of the “blue book” was my most important sales guide as we took a diverse collection of aircraft as trade-ins on factory new machines. Back then, the guide could only be purchased by bona fide aircraft dealers and some government officials. Things have changed as the general public can now acquire copies.
Although there were some differences in market pricing between Canada and the USA with varying exchange rates and tax considerations, the price ratios were all relatively accurate and the guide was invaluable in establishing market and wholesale values.
But the guide provides much more. This “blue book” is chock-a-block full of equipment data that advises prospective purchasers of typical avionics, factory options, serial numbers for applicable production years, engine specifications and thereby allows readers to determine the true value of a specific aircraft offering.
Incidentally, this guide also includes the most popular models of helicopters!
Although the blue book doesn’t show data on my Diamond Xtreme motorglider, this is likely due to the fact they are scarce in North America, it does include most types including rarities such as the: Melex M18 Dromader, Zlins, Varga Katchina’s, Tiger Aircraft and Ayers Thrush.
Interestingly, there is a value trend for some aircraft that tells readers whether values are changing rapidly on various aircraft types. This can lead to increased profit or decreased losses to prudent readers.
OTHER USEFUL DATA
Appendices provide extremely useful information that can protect blue book owners from making expensive mistakes. For instance the “Technical Information” appendix lists: Airworthiness Directives, Engine Prices and Aircraft Specifications and Performance Figures (including helicopters).
Another appendix comprising 112 pages details supplemental pricing information that includes: airframe time, avionics pricing with respect to depreciation, conversions and modifications, deicing equipment, engine maintenance programs, floats, paint and interior pricing and calculations to consider aircraft in prime condition or those with damage history.
The directories and glossaries section shows contact information for manufacturers of: aircraft, engines, avionics, propellers and service providers. Additionally a glossary of aviation terms maximizes utilization of the guide and interest rate charts allow purchasers to assess the true cost of financed purchases.
There’s much more, but, suffice to say, the blue book is essentially a one-stop shopping guide into the world of aviation. As our dollar stretches towards par value, (with continuing fluctuations), knowing aircraft values in American dollars is especially useful now because we can find relative bargains south of the border with our growing Canuck buck.
Why you can’t live without the guide
We’ve all seen folks pay far too much for a high time aircraft and still others “give away” pristine planes because they didn’t know current market values. There is no better tool to take to a bargaining session than a blue book (cash works well too)!
Sellers often “overprice” their planes and it doesn’t hurt to educate them to realistic market prices because the guide considers every variation likely to be encountered in a sale. Similarly, purchasers often try to scoop an aircraft and might need a wake up call from a guide-equipped seller in order to fetch a fair price.
The blue book brings truth to the table and is completely non-biased when it comes to closing sales between opinionated parties. If you don’t have a blue book you may be weaponless during pricing battles. The price? The $319.95 U.S. rate includes four quarterly issues per year (You could always share an annual subscription with others.). The cost may seem high for some readers; however, one must consider the massive amount of research and tabulation the company performs to ensure accuracy.
For further information, contact the company with the data below or visit their website at:
A sample pricing evaluation from The Aircraft Bluebook Price Digest
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1980 Piper Warrior II, 9225 TT, 240 SMOH, dual KX-170B, IIIB a/p, strobes, super nice paint, recent interior
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1. Calculate the value of engine time.
1000 (SMOH) – 240 (Warrior’s engine hours) = 610 (hours below midtime) x $6.50 (value of each hour, shown in this model’s Add for line) = $4,940 (amount to be added to the value of this warrior for low engine time).
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2. Calculate the
value of airframe time. - Determine the number of hours this Warrior has flown per year: 9225 hrs (AFTT) / 25 (age of this Warrior) = 369 (hours flown per year by this Warrior). - Now determine the fleet average for this model by glancing at the “Average Hrs Per Year” chart in Appendix A. This figure will be compared with this Warrior’s total time to determine how much the Warrior’s airframe/total time deviates from the fleet average. Remember, airframe time is allowed to vary from the average by 10% (higher or lower), so no calculation is required for variances ranging from 1% to 10%. 369 (number of hours this Warrior has flown per year) – 272 (number of hours flown each year by typical Warrior, as shown in “Average Hrs Per Year” chart in Appendix A) = 97 (number of excessive hours logged per year by this Warrior when compared with the typical Warrior). - Calculate what percentage this excess represents: 97 hrs / 272 hrs = 35.6% - Therefore,
this Warrior has flown an average of 36% more than the typical Warrior
built between 1977 and 1994.
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3. Determine the value of this Warrior’s avionics and equipment. No value is added for the dual KX170B (nav com) or strobes since this equipment already has been factored into the values shown in the Bluebook. The (Century) III B a/p (2-axis autopilot) is considered a supplemental piece of avionics, and its value, both retail and wholesale, is found on this model’s Add for line.
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4. Account for other factors that may affect the value of this
aircraft. Also, we do not know whether this plane has been damaged in its 25 years of flying. Some dealers say that no mention of damage history (DH) is nearly a sure bet that the plane has been damaged; otherwise, they say, the ad proudly would declare that the plane never has been damaged (NDH). The buyer definitely should raise the question of damage before agreeing to purchase an aircraft.
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5. Calculate the
value of all factors above.
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Aircraft
Bluebook - Price Digest
9800 Metcalf Ave
Overland Park, KS 66212
Phone: 800-654-6776
Fax: 800-633-6219