NAFA member, Adam Meredith, President of AOPA Aviation Finance Company, discusses the benefits of using an aircraft broker.
We’re often asked, “If there’s no licensing requirement for an aircraft broker, why bother? After all, I’m a pretty good negotiator.”
Two words: market knowledge. A good broker not only will have good inventory but should also know who else has good inventory, and they’ll have knowledge about the market. Market knowledge extends to understanding the correct set of aircraft for your specific mission.
A broker can be useful in helping you evaluate whether the make and model you’re looking at is truly the best one for you, or whether there are alternatives you should be contemplating. For example, you might be interested in a Mustang, but perhaps the Phenom 100 is better because the payload, range and avionics make it a better choice for your mission, or vice versa.
Another benefit is specialization. A lot of brokers specialize and become quite expert in one area, such as Mooneys or TBMs or very light jets. As a result, a broker can advise on what to look for in the specific make and model you’re considering.
Specialization also leads to off-market or pocket listing options. In pocket listings, sellers will use brokers to sell their planes without listing them. Brokers rely on their relationships to connect you with sellers and planes you would otherwise not know about.
You may be a great negotiator on your own, but why not add someone to your team who brings extra knowledge and insight to the table and who can be your advocate in the negotiation process? International Aircraft Dealers Association brokers must go through initial certification training, a competitive process adhering to rigorous standards that ensure only the most respected and experienced dealers become IADA members.
Bottom line: Spend some time choosing a good broker. While having a broker isn't required, adding one to your team only puts you in a better position overall.
This article was originally published by AOPA Finance on April 27, 2021.
