Why Sell at Auction |
 |
|
 |
Q. What is AirVenture 2010? |
| |
Ans. EAA AirVenture Oshkosh serves as one of the world's premier aviation events, attracting top government officials, corporate leaders and hundreds of thousands of aviation enthusiasts. It spans the entire spectrum of aviation and attracts 10,000 airplanes each year. More than 500,000 aviation enthusiasts attend the event annually. EAA AirVenture Oshkosh is an international gathering place for aviation enthusiasts, professionals, and dreamers alike. |
|
Q. Why sell my aircraft at the Spirit of Aviation Aircraft Auction? |
| |
Ans.As the World's celebration of aviation, no where else is the dream of flight more alive. At AirVenture, the perfect storm of opportunity combines to put sellers and buyers together in one place. The EAA now brings to AirVenture a first in the form of the Spirit of Aviation Aircraft Auction. As a seller, you will have the ability to gain the marketing value of not only the pre-event media but also have your aircraft on display at AirVenture. Couple this with onsite financing, insurance and a world class aviation event, and you have the perfect storm of opportunity to sell your aircraft to the highest bidder |
|
Q. Why buy my aircraft at the Spirit of Aviation Aircraft Auction? |
| |
Ans.The Spirit of Aviation Auction at AirVenture 2010 promises to host almost any aircraft that you can think of. If your dream is to own an aircraft, then the combination of auction pricing, onsite financing, insurance and inspection opportunities gives ground to arguably the best opportunity to fulfill your own aviation spirit. Auction prices, low interest rates, and the aviation world as your stage, make buying your first aircraft, or stepping up to your next aircraft, a true possibility at AirVenture 2010. |
Pre-Auction |
|
|
|
Q. What is a Pre-Auction Bid? |
| |
Ans. Making a Pre-Auction Bid provides an opportunity to present your HIGHEST and BEST bid to the seller OUTSIDE of the auction bidding process. All Pre-Auction bids will be submitted to the seller for consideration and are subject to Seller acceptance. Remember, this Pre-Auction Bid will NOT be entered as an auction day bid. |
|
|
|
Q. What types of aircraft will be sold at this auction? |
| |
Ans. Whether you are a first-time buyer, someone looking to step up to that dream aircraft, someone looking to slow down a bit and get more fun out of your flying, or someone looking to step into the world of Jets, the Spirit of Aviation Aircraft Auction offers a wide variety and attractive selection of aircraft, all at auction prices! These aircraft span the entire spectrum of aircraft ranging from Cessnas, Pipers, and Beechcraft to light twins, twins, jets, collectibles, warbirds and more. |
|
Q. Who owns the aircraft that are being offered at the auction? |
| |
Ans. These aircraft are all owned by individuals, corporations, trusts, and other ventures. The owners are motivated to sell their aircraft, so this is an incredible opportunity. Be sure to register and attend the auction to take advantage of this event. |
|
|
|
Q. Should I inspect the aircraft prior to bidding at the auction? |
| |
Ans. Yes, yes, yes! The only way for you to make an informed decision when it comes to bidding and buying is to not only view and inspect the aircraft prior to the auction, but also satisfy yourself as to the aircraft's registration and read and review its maintenance records. Do your investigation. Make your inspections. By registering and bidding at the auction, you are representing that you have not only viewed the aircraft prior to bidding, but have also inspected, reviewed and accepted all relevant aircraft information you deem necessary to make an informed decision. All aircraft submitted for the auction must be present at the auction and available for inspection 48 hours prior to the event. Auction aircraft will be parked in a specially designated area and made available for pre-inspection as well as the opportunity to meet the owner/broker prior to auction day. |
|
Q. Can I bring an Airframe and Powerplant Licensed Mechanic with me during inspection? |
| |
Ans.Yes! |
|
|
Auction Process – Live Auction Bidders |
|
|
|
Q. What do I need to bring to the Spirit of Aviation Aircraft Auction? |
| |
Ans. If you plan to bid and purchase an aircraft at the auction, you must have:
- A $2,500 cashier's check (made payable to yourself) [$5,000 cashier's check for any additional aircraft purchases]
- A personal check to pay the balance of the required 10% Earnest Money Deposit due on auction day [15% for any additional aircraft purchases].
- Valid photo identification for all parties involved in the transaction, issued by a government agency (driver's license, passport, etc)
- We also recommend you bring the last 2 years of tax returns, last 2 years of W-2's, and last 30 days of pay stubs to help the process move more quickly if you intend to secure financing on site.
|
|
|
|
Q. What is the difference between a cashier's check and an official check or bank check and why must I have a cashier's check on auction day? |
| |
Ans.. The terms "cashier's check," "treasurer's check," and "official check" are often used interchangeably. A cashier's check is a draft where the drawer bank and the drawee bank are the same. In other words, where the check is drawn by a bank on itself. If so, and if it is not captioned "expense check" or "dividend check" or "payroll check" or in any other way that makes it a special-purpose payment, consider it as fitting the definition of a cashier's check and making the funds available accordingly. A cashier's check has availability requirements defined under Reg. CC. and that is why a cashier's check is required as part of the Earnest Money Deposit. |
|
|
|
Q. Do I need any experience to bid at one of your auctions? |
| |
Ans.No... bidding is simple and registering as a bidder is FREE! Whether you are a first timer or an auction veteran, come to the auction, explore and ask questions. Our staff will be happy to assist you in any way they can. After a few aircraft are auctioned and sold, you will see for yourself how easy the process is and be ready to bid yourself. We also conduct a "Bidder Seminar" about half hour prior to the start of the auction to help familiarize you with the method and pace of bidding that the auctioneer will utilize. |
|
|
|
Q. Do I need to register to bid at the auction? |
| |
Ans.Yes! But registering is free and easy. We recommend that you register at least 48 hours prior to the auction day in order to receive information relating to the event. And remember, it's totally FREE! There is no obligation on your part! |
|
Q. May I attend to just watch? |
| |
Ans. Yes. However, Registered Bidders will be granted access before the general public. If we are nearing room capacity, we will have to restrict attendance to Registered Bidders only. We cannot violate fire and safety codes. |
|
|
|
Q. Can I purchase more than one aircraft at this auction? |
| |
Ans. Yes, however, if you are planning to purchase more than one aircraft, you must register as a "Multiple Bidder" and do the following:
1. . Be prepared to make an Earnest Money Deposit of 15% ($5,000 must be by cashier's check) for each aircraft purchased after the first; and
2. Agree to be pre-qualified by the designated lender
Or
3. Show the ability to purchase the aircraft for cash by means of current bank statement, CD statement, stock portfolio statement, or retirement account statement. Your documents must be dated within ten (10) days of the auction event. |
|
|
|
Q. How can I pay the Earnest Money Deposit? |
| |
Ans. The first $2,500 of the Earnest Money Deposit must be paid by cashier's check ($5,000 cashier's check for each additional aircraft purchase). The remaining balance can be paid by personal check. You will be provided with a receipt on auction day showing that the escrow/closing agent received your Earnest Money Deposit. There are no exceptions to this requirement. |
|
|
|
Q. What if my Earnest Money Deposit required is less than the required cashier's check? |
| |
Ans. There is a minimum Earnest Money Deposit of $2,500 that must be paid in the form of a cashier's check ($5,000 cashier's check for each additional aircraft purchase). |
|
|
|
Q. What if I buy more than one aircraft, what is my Earnest Money Deposit requirement? |
| |
Ans. If you buy more than one aircraft and it is not your first aircraft acquired at auction, then your Earnest Money Deposit is to be 15% of Total Purchase Price or $5,000, whichever is greater. The first $5,000 Earnest Money Deposit must be paid in the form of a cashier's check and the remainder with a personal check or additional cashier's check. |
|
|
Auction Process - Online Bidders |
|
|
|
Q. I am trying to register to bid online for the auction…why won't it let me? |
| |
Ans. Registration for online bidding is available up to the auction ending date. Please contact customer service at (888) 740-3840 for assistance if you are having any problems registering. |
|
|
|
Q. I registered, but it didn't ask for a credit card, how do I put in my deposit?? |
| |
Ans. You may have created your profile, but did not register to participate in online bidding for the auction event. Please ensure that you are registered for online bidding by clicking on the "REGISTER NOW" button. |
|
|
|
Q. Can I use my ATM/debit card for the deposit? |
| |
Ans. No. You must use a credit card. We place a "hold" but do not charge the credit card. A debit card does not recognize this transaction, so it may either reject it or pull funds from your account.
|
|
|
|
Q. How much is the credit card deposit? |
| |
Ans. $2,500. |
|
|
|
Q. How is the hold on my credit card removed following the auction ? |
| |
Ans. . If you are a successful bidder, the hold on your credit card will be removed within 24 hours of receiving the required earnest money deposit. If you did not purchase, the hold will be removed within 24 hours following the conclusion of the auction. |
|
|
Auction Process - General |
|
|
|
Q. What if I have a buyer’s broker? |
| |
Ans. Brokers working on behalf of buyers are welcome. While there is no additional commission paid to a buyer's broker, their participation in the auction process can greatly help a buyer. Buyers' brokers are welcome to register on the registration page however any commissions earned are strictly paid by the buyer. EAA and Auction.com will not be liable for any amounts due to a buyer's broker. |
|
|
|
Q. How long will each auction last? |
| |
Ans. Generally, we are able to auction between 15 to 20 aircraft per hour, so things will be moving at a rapid but manageable pace for our bidders. The length of each auction is dependent upon how many aircraft are for auction that day. You may refer to the auction day line listing in the brochure for estimated arrive-by times. Please allow yourself sufficient time to attend our auction event so that you are able to take advantage of all the opportunities presented on auction day. |
|
|
|
Q. What is the Buyers Premium and? |
| |
Ans. The Buyer's premium is an amount added to the winning bid to result in the "Total Purchase Price" or total price and should be factored into your bidding. The Buyer's Premium is usually a percentage of the winning bid. The Buyer's premium, or "BP," is normally an amount that is considered consistent with industry standards and is used to help pay for the costs of putting the auction on, marketing, and other event costs.
|
|
|
|
Q. What is the Earnest Money Deposit? |
| |
Ans. The Earnest Money Deposit is the amount of money you are required to put down on auction day. On auction day, you must deposit with the escrow/closing agent an Earnest Money Deposit equal to 10% of the Total Purchase Price, regardless of the amount you finance. A 15% Earnest Money Deposit is required for each additional aircraft purchased. This is not the financing deposit or down payment, but rather the amount required as the Earnest Money Deposit on auction day. For example, if the Total Purchase Price is $220,000 (the Winning Bid Amount PLUS the Buyer's Premium), then the Earnest Money Deposit required on auction day for your first purchase is $22,000 (10% of $220,000).
|
|
|
|
Q. If I am the winning bidder, can I assign my contract to someone else? |
| |
Ans. No. The purchase agreements are not assignable. All parties who wish to buy must be present on auction day so that they can register for the auction and execute the necessary documents if they win. |
|
|
|
Q. What if I change my mind? Can I cancel the transaction after the fact? |
| |
Ans. No! Once the auctioneer has announced "Sold!," you have agreed to purchase the aircraft. There is no rescission or "cooling off period". That is it why it is important for you to conduct all of your due diligence and inspections prior to auction day and bidding on the aircraft. Please review the auction terms and conditions for further information.  |
|
|
|
Q. Do you publish auction results? |
| |
Ans. No.
|
|
|
|
Q. Can I put it in my corporate name? |
| |
Ans. Yes, you can put it in the name of a Trust, partnership or corporate entity. To do so , you much fax in your entity formation documents to (800) 618- 3007, prior to bidding on the aircraft. |
|
|
|
Q. What documents are required for Corporations? |
| |
Ans. Articles of Incorporation, By Laws, and Resolution authorizing the Corporation and party signing Purchase Agreement to act on behalf of Corporation in this transaction. |
|
|
|
Q. What is required for Limited Liability Companies (LLC)? |
| |
Ans. Articles of Organization, Operating Agreement, and Resolution authorizing the LLC and party signing Purchase Agreement to act on behalf of LLC in this transaction. |
|
|
|
Q. What do I need to put it in a Trust? |
| |
Ans. Declaration of Trust and evidence that party signing contract is Trustee of the Trust. |
|
|
|
Q. What is required for a Partnership? |
| |
Ans. Partnership Agreement and evidence of authority of party signing contract. |
|
|
Aircraft Registration |
|
|
|
Q. Are there any liens on the aircraft? |
| |
Ans. There may be existing liens. Any known liens will be made public however it is the responsibility of the buyer to conduct all necessary due diligence to make an informed decision. |
|
|
|
Q. When will transfer of ownership occur for any aircraft I may purchase? |
| |
Ans. The closings are expected to occur within 5 business days following the auction event. At closing, and upon payment of the purchase price, a bill of sale will be finalized and you will take ownership under the name you designated to the closing agent. Please review the purchase agreement for additional information. |
|
|
Finance |
|
|
|
Q. How do I get financed if I'm the winning bidder? |
| |
Ans. Financing is available through Air Fleet Capital. Bidders should pre-qualify by going to the attached link: http://www.airfleetcapital.com/
|
|
|
|
Q. What if I want to use my own lender? |
| |
Ans. You are free to use your own lender…BUT, you will be requested to take an application with the onsite lenders at the auction should you be a successful bidder. We encourage you to utilize the designated lenders due to their experience as large, national lending companies who specialize in helping everyone, from first-time buyers to sophisticated investors. Please see the auction terms and conditions and review the purchase agreement so you are fully informed. |
|
|
|
Q. Can bidders provide their own financing? |
| |
Ans. Yes, but the sale will not be contingent upon financing, escrow closing will not be contingent upon financing, nor will escrow closing be extended for that purpose. Winning bidders using their own financing must at time of auction provide a written unconditional lending commitment from their lender. Failure to provide at auction will result in the winning bidder being required to use Seller's lender, subject to qualification. Bidder must fill out loan application for their lender allowing Seller to confirm credit status. |
|
|
|
Q. What does it mean when the aircraft is listed as "Cash Only"? |
| |
Ans. . It means that the buyer must qualify as a cash buyer without using a lender, as some categories of aircraft are non-financeable or difficult to finance. |
|
|
|
Q. When the aircraft is listed as "Cash Only", do I have to have the cash at the auction? |
| |
Ans. You must have the required cashier's check for the Earnest Money Deposit (10% for first aircraft, 15% for second or subsequent aircraft) on auction day, and be able to fund without financing within the 5 business day closing period. |
|
 |
|
Q. What do we need to bring if we are paying for the aircraft in cash? |
| |
Ans. On auction day, you will need the 10% Earnest Money Deposit (15% for each additional aircraft purchase), plus proof of the ability to obtain the cash within 5 business days. Documents of proof include 30 days of paycheck stubs, a recent bank statement or mutual fund statement or IRA statements…wherever the funds are coming from. Also a current government-issued photo ID. |
|
|
|
Q. What are the closing costs? |
| |
Ans. The closing costs are dependent upon the complexity of the sale but generally amount to about 1% of the total purchase price and often times are less than that. The costs cover title searches and FAA recordation, documentation preparation fees (loan-related), documentation review fees (I.e. trusts, LLCs, etc), escrow fees, International Registry fees (for larger aircraft), any charges for lien releases (title preparation). Title insurance, if elected by the buyer may also be included. For the purpose of the auction, the standard appraisal and collateral evaluation fees if executed may be included here. |
|
|
Bidding Process |
|
|
|
Q. What is a Pre-Auction Bid? |
| |
Ans.Making a Pre-Auction Bid provides an opportunity to present your HIGHEST and BEST bid to the seller OUTSIDE of the auction bidding process. All Pre-Auction bids will be submitted to the seller for consideration and are subject to Seller acceptance. Remember, this Pre-Auction Bid will NOT be entered as an auction day bid. |
|
|
|
Q. Can I bid on more than one aircraft? Bidding Limits? |
| |
Ans. Yes. You determine your bidding limits, and as long as you have enough funds you can bid on more than 1 aircraft. Make sure that the sum of your bids does not exceed your bidding limit. |
|
|
|
Q. What if I want to bid on back to back aircraft? |
| |
Ans. You may bid on as many aircraft as you like. In the event you are the winning bidder on more than 1 aircraft you will be required to submit a separate earnest money deposit for each purchase. |
|
|
Winning Bidder Process |
|
|
|
Q. How will I know if I am the Winning Bidder? |
| |
Ans. If bidding on your aircraft ends and you hear (at the live auction) or see (for online bidders) "SOLD!", then you are the winning bidder (some aircraft may be sold subject to seller confirmation and require further approval of the seller to have an actual sale). Online bidders will receive a winning bidder confirmation via email in very short order. That email will be followed up as soon as possible within 24 hours by a phone call from one of our online sales representatives, who will walk you through the contracting process.
|
|
|
|
Q. I'm bidding online and I received an email stating I am the highest bidder, but no one has contacted me. What do I need to do? |
| |
Ans. You will receive an email when you are the highest bidder on an aircraft. At the end of an auction, if you have not received another email indicating you were outbid, you should receive an email indicating you were the winning bidder for this aircraft. Within 24 hours, you will receive a phone call to walk you through the contracting process.
|
|
|
Closing Process |
|
|
|
Q. Can I see the aircraft after the auction? |
| |
Ans. Winning bidders are not authorized to enter the aircraft until close of escrow. Remember that all aircraft are sold as-is and there is no inspection contingency |
|
|
|
Q. I was an online bidder and I haven't received my contracts, what do I do? |
| |
Ans. If you have not received your contract documents within 24 hours of auction end, please contact customer service at 1-888-740-3840 and ask to speak with the Director of Online Sales. |
|
|
|
Q. Can I add another name on the contract after the auction? |
| |
Ans. All parties on contract must be added at the time the contracts are being drawn up. We cannot add co-buyers after the contract documents are sent out. |
|
|
Auction Fees |
|
|
|
Q. Is there any cost to register for the auction? |
| |
Ans. There is no fee to register for the auction. |
|
|
|
Q. Is there any cost to attend the auction? |
| |
Ans. There is no cost to attend the auction however due to limited seating, registered bidders and their guests will have first priority to seating. |
|
|
|
Q. What is a Buyer's Premium? |
| |
Ans. The Buyer's premium is an amount added to the winning bid to result in the "Total Purchase Price" or total price and should be factored into your bidding. The Buyer's Premium is usually a percentage of the winning bid. The Buyer's premium, or "BP," is normally an amount that is considered consistent with industry standards and is used to help pay for the costs of putting the auction on, marketing, and other event costs. |
|
|
|
Q. What is the Buyer's Premium for this auction? |
| |
Ans. The Buyer's Premium for the Spirit of Aviation Aircraft Auction is a scaled premium based on the dollar value of the aircraft sold at auction. Simply click on the Fees page at www.airventure.org/auction. |
|
|
|
Q. How does this affect my winning bid? |
| |
Ans. If, for example, your winning bid is $100,000, the buyer's premium (BP) would be 10% or $10,000. This is then added to the winning bid total and results in a total purchase price of $110,000. |
|
|
|
Q. Do I have to pay in full on auction day? |
| |
Ans. No. While this is encouraged, the requirement on auction day is only a 10% Earnest Money Deposit (EMD). The EMD in the example above would be $11,000. Winning Bid of $100,000 + BP ($100,000x10%= $10,000) = a total purchase price of $110,000. Owed Auction Day = $110,000 x 10% = $11,000 due as earnest money deposit. |
|
|
|
Q. How is Sales Tax Factored in? |
| |
Ans. The sales or use tax varies based on many factors. You are highly encouraged to consult with your tax advisor on any tax implications of your aircraft purchase. |
|
|
| We'll see you at the Auction!! |
