Maximize Your Fractional Aircraft Purchase
Whether you are an existing fractional owner, or you are a first-time perspective owner, you should be aware that you have many ways to improve the terms of boilerplate contract sent to you by the fractional provider. Existing owners can improve their terms during the re-enrollment process and during an extension. First time owners are in the best position, if savvy, to obtain their best possible terms.
Fractional programs offer a good solution for your aircraft needs without the headache and administrative burden of managing your own aircraft, however this benefit does come at a premium. Fractional providers will seek to maximize their margin and profit as most businesses do. Reducing the margin and making a better deal for the purchaser comes from knowledge and experience with the process and negotiating points. Fractional providers will negotiate on certain deal points which can financially benefit a perspective purchaser.
Key areas in the fractional documents set which offer opportunities for the savvy include the following:
Fractional share acquisition cost,
Scheduling/operational considerations,
Fixed and variable costs, and
Legal term and conditions.
Prior to finalizing your acquisition, make certain you are getting the best value for your specific needs. You have one significant chance to obtain your best deal and that is prior to signing on the dotted line.
By Andrew Joran - AJ Aviation Consulting, LLC (former lead fractional sales representative)
Edited by Forrest Owens, Esq.
NOTE: This information is provided for educational purposes only and should not be construed as legal advice or a consultation with regard to any general or specific matter.