Buying an aircraft at an AvBid auction is simple and easy.
Three Ways to Bid: On-Site, Telephone or Online Absentee
Bidder Registration Highlights
To Bid On-Site:
Step 1: Register to bid by filling out a Bidder Registration form. By registering to bid, the buyer acknowledges that they have reviewed and understand the information in the bid packet and the Contract of Sale agreement. The bidder also acknowledges that immediately following the auction, they are prepared to execute the Contract of Sale agreement and pay the appropriate deposit at that time in a form that has previously been deemed acceptable to AvBid.
Step 2: Determine how much you are willing to pay for the aircraft. Since your needs and desires are unique, your evaluation of the aircraft will be different from anyone else’s.
Step 3: As the auctioneer progresses in his call for bids, simply raise your hand when you want to bid. If you’re not sure if you’re in or out, raise your hand again and the auctioneer will keep you in. He will not let you bid against yourself. The auction will be conducted under the total control of the auctioneer.
Step 4: If you have any questions, motion for one of AvBid’s auction team members. These men are here to help you understand the process completely.
Do I need to pre-qualify?
No. We normally do not require any pre-qualification to bid. However, if you intend to use bank financing, the bank will require you to qualify for their loan. The deposit you make on auction day is not contingent upon financing. For this reason, it is important that you finish your evaluation and inspections of the aircraft and be qualified by the bank with no contingencies prior to bidding.
If I win the auction, what happens to my deposit money?
The deposit will count as a credit towards the purchase price of the aircraft and be placed in an escrow account.
What is a buyer’s premium?
A buyer’s premium is a percentage that is added to the bid price to determine the total purchase price. In most auctions there will be a 4% buyer’s premium added to the successful bid amount on piston and a 3% buyer’s premium added to the successful bid amount on turboprop/turbine aircraft. In addition online (internet) bidders pay an additional convenience fee of 1.o%.
How much money do I need at the auction?
If you are the winning bidder, your ten percent (10%) earnest money deposit will be non-refundable and due on the date of auction. In most cases a $2,500 credit card or cash payment and a personal or business check to make a total deposit of ten percent (10%) is sufficient, however, it is best to check with our office to make certain that certified funds are not required. The balance of the contract purchase price shall be due at closing, which is ten (10) business days after the initial deposit.
What does the term “absolute” mean?
In an absolute auction, the property will be sold to the last and highest bidder regardless of price.
Are auction sales contingent on inspection?
All sales are on an “as-is” basis. There are no warranties as to the condition and/or the fitness of the aircraft for a particular use. We do our very best to provide ample documentation about the auction aircraft, but AvBid Aircraft Auctions encourages all buyers to do their due diligence and a pre-buy inspection, including examination of all log books, prior to sale day for their own protection.
When can I inspect the aircraft?
AvBid schedules previews on most aircraft at least 24 hour prior to the auction date and will make every effort to afford ample access to assist in your purchase decision. AvBid can provide access to licensed Airframe and Aircraft Engine mechanics to aid in your pre-purchase inspection.
What are the advantages to a buyer in an auction situation?
The buyer knows he is getting the aircraft at a fair price. A buyer feels committed to the purchase knowing that there is a contending bid just one increment under the purchase price. A buyer can withdraw from the bidding at any time prior to the final gavel. Buyers see many offerings in the same place at the same time, which enables them to make market comparisons quickly and easily.
Other benefits are:
- Buyers set their own purchase price.
- Auctions eliminate long back and forth negotiation periods.
- Auctions reduce time needed to purchase an aircraft.
* Buyers do not have to worry about contingencies because purchasing and closing dates are known in advance of the sale.
* Due diligence is performed in advance of the sale.
I’ve never been to an auction before. This sounds confusing.
First, you are not alone. Many people who attend our Aircraft Auctions are there for the first time. Second, you will never be tricked into buying something that you don’t want. The most important thing to do at an auction is relax and have fun. If you have a question, ask it. We strive to insure that all of our customers are fully informed and educated.