Host: Jason Zilberbrand, President of VREF Aircraft Value Reference & Appraisal Services

Introduction

Jason pulls back the curtain on aircraft valuation—what it is, what it isn’t, and how bad inputs (or bad actors) can warp the number you’re relying on. Building on Episode 2 (bonus depreciation myths and popularity traps), this episode shows exactly how to value an aircraft and how the new VREF software makes the process transparent, defensible, and repeatable for buyers, sellers, brokers, lenders, and insurers.

Topics Covered

1) Why Aircraft Valuation Is Harder Than Cars, RVs, or Boats

• Small fleets, unique histories, and limited public sales data.
• “Comps” without context are dangerous—closing numbers rarely reveal the real configuration, condition, or concessions.

2) The Good: A Correct, Defensible Valuation Workflow

• Enter the fundamentals correctly: airframe time, engine time since overhaul, accurate TBO (now fully editable in VREF), program status (on/off), paint/interior condition, avionics, and STCs.
• VREF outputs multiple value types: Fair Market (Retail), Wholesale, Orderly Liquidation, Forced Liquidation, Inventory, Scrap—with clear use cases.
• What each means (plain English):
  • Fair Market (Retail): USPAP/IRS/ASA-defined “willing buyer/willing seller” in open market—this is the everyday benchmark.
  • Orderly Liquidation: distressed sale, broker has time to sell post-default/repo.
  • Forced Liquidation: auction-level distress—sell fast, get what you can.
  • Inventory Value: dealer carry-cost perspective (e.g., ~90 days).
  • Wholesale: multi-unit discount or special-use/soft markets; use sparingly for common aircraft.
  • Scrap (not Salvage): raw metal value if no productive use remains; salvage/parting-out is too variable for software (consulting required).

3) The Bad: Common User Errors That Skew Values

• Missing overhaul status or using “top overhaul” in the major overhaul box (don’t).
• Forgetting to toggle engine program coverage.
• Over-crediting avionics or double-counting options (e.g., Cirrus SR22 GTS options applied twice).
• Skipping the condition tab (leaving $50–60k on the table on pistons with fresh paint/interior).
• Not crediting factory reman, hot sections, or midlife on turbines.
• Confusing asking prices with actual market (throw out the extremes; many listings are aspirational or strategic).
• ...

NOTE: you can see full content description at https://vref.com/news/episode-3-the-good-the-bad-and-the-manipulated-how-aircraft-valuations-really-work