Coordinate two aircraft transactions without assuming the first sale will fund the second on schedule. Compare gross trade allowances with actual net equity, financing obligations and interim operating needs.
Separate the two prices
Record the existing aircraft sale or trade allowance and replacement price independently. Identify payoff, broker or dealer fees, agreed work, taxes and any linked contract conditions. A large trade allowance does not establish a better economic outcome if the replacement price or other obligations differ. Request comparable cash-flow statements rather than evaluating one headline number.
Calculate usable equity
Subtract actual payoff and costs from proceeds and identify any retained holdback. The remaining amount may still be unavailable until the first transaction closes. Do not count gross trade value as down payment or assume the replacement lender will credit expected proceeds before receiving evidence. Ask how any bridge arrangement changes debt and collateral.
Plan a timing mismatch
Show cash required if the replacement closes first, the existing sale is delayed or an inspection issue affects either aircraft. Include overlapping hangar, insurance, debt, crew and operating costs. If retaining the old aircraft temporarily, confirm the liquidity and actual lender conditions rather than relying on a hoped-for immediate exit.
Coordinate legal and tax review
Have advisers examine linked obligations, title transfers, security interests, deposits and delivery facts for each aircraft. California purchase-tax analysis should not be inferred from net cash exchanged. Tax outcomes and lender underwriting follow their applicable rules and evidence, not simply the parties describing the arrangement as a trade.
Illustrative seller scenario
Illustrative only: a $3 million trade allowance with $1.8 million payoff and $100,000 selling obligations creates $1.1 million modeled equity before taxes, timing and holdbacks. If the replacement requires $1.4 million cash, there is at least a $300,000 funding gap before other commitments. These assumptions do not establish an accepted valuation or available bridge loan.
Your next-step checklist
- Independent transaction prices
- Net equity
- Overlap cash scenario
- Separate adviser reviews
Sources & further reading
Primary sources support the relevant facts. Our planning questions and illustrative exercises are editorial analysis; they do not replace transaction-specific advice.
- AOPA original selling-an-aircraft resource · accessed 2026-10-28