Introduction

A single dent can erase seven figures from a jet’s value. In this episode, Jason unpacks one of aviation’s most misunderstood—and expensive—topics: damage. Drawing on decades of appraising, federal litigation experience, and a personal war story (a Lear 45 tail strike in a hangar), he explains why damage isn’t a checkbox or a one-size deduction. It’s a nuanced blend of market psychology, documentation, repair quality, and timing—and getting it wrong can cost millions.

Topics Covered

1) Why Damage Matters (and What It Isn’t)

• Diminution of value ≠ airworthiness. Returning an aircraft to service doesn’t erase market stigma.
• Emotional and reputational effects drive real pricing outcomes—especially with high-value business jets.
• Comparables from other asset classes (exotics, vintage instruments): pedigree and history reshape demand.

2) Core Valuation Criteria for Damage

• Dynamic vs. static incidents: under power/motion typically carries larger deductions than at-rest/tow events.
• Repair method & provider: OEM/authorized facilities and factory parts are rewarded by the market; third-tier or vague repairs increase stigma.
• Workscope & records: completeness, clarity, and no “pencil-whipped” entries; missing logs create pedigree risk and amplify buyer scrutiny.
• Searchability & publicity: online news/photos can permanently brand an airframe, regardless of technical repair quality.Asset & market context: age, cycles, engine programs, fleet size, buyer demand, and inventory levels influence how much discount the market demands.

3) Market Cycles & Stigma

• Tight inventory = more forgiveness. Hot markets (e.g., COVID era) moved damaged aircraft with smaller discounts.
• Soft markets = bigger discounts. When buyers have choices, stigma costs more.

4) Science vs. Art

• Science (measurable): equipment list, repair invoices, sales history, fleet behavior.
• Art (buyer psychology): two identical aircraft—only one with a damage entry—rarely trade for the same number.

See full show notes at .... https://vref.com/news/episode-4-how-does-damage-effect-aircraft-value/

Closing & Next Episode

Episode 4 demystifies damage—what actually drives value hits and how to recover them. Next up: real-world damage war stories, deeper dives on documentation pitfalls, and how to price stigma over time. Subscribe on your favorite platform and reach Jason at Jason@vref.com if you want a case discussed (anonymized) in a future episode.

Podcast theme music by Transistor.fm.