Buyers Guide To Purchasing An Aircraft

What type of aircraft do you need?

What is the main reason you require the aircraft for? How often and for how long will you be using it? Will you be taking passengers or flying solo? Are you planning on buying a brand new plane or will you be looking for a used one?

Answering these questions before you physically start looking for an aircraft will help you narrow down the options available to you. Your purchase requires complete research of all its elements before you decide to make a commitment. The process of joining owner groups on aviation forums enables you to obtain detailed information about plane ownership and ask questions about specific aircraft models.

Budget

What is your budget ceiling for expenses?  Select a plane model which fits your present requirements. You might entertain the thought of having a spacious eight seater but if, on most flights, you’re only going to be carrying one or two passengers then a smaller will be more economically viable.

Remember that you must include both the first purchase price and the continuous operational and maintenance expenses. Your plane grounding during most of the year will not eliminate the need to maintain insurance payments and storage fees. You should create a costs spreadsheet which organizes your expenses by month to get ready. You should create a financial safety net by establishing emergency funds which will help you during unplanned events beyond your current budget plan.

Your accountant will help you decide if your plane usage at work qualifies for business use under tax regulations.

Storage

Your aircraft will require storage in a designated area. The cost of hangar storage exceeds outdoor storage expenses yet it provides protection against weather-related damage to your aircraft. If you need to keep your plane outside then you should apply weather-proofing wax frequently and buy a good cover and change it every few years and make sure the fuel caps block moisture entry. You need to plan your expenses carefully because the location of your aircraft storage will determine the costs you must pay.

Insurance

Every aircraft must maintain specific insurance coverage levels according to its Maximum Take-Off Mass (MTOM) and passenger capacity as required by law.

When you have decided what kind of plane you will be purchasing you should start obtaining a range of quotes for aircraft insurance. The insurance market provides two main options for coverage which include annual comprehensive aviation insurance and pay-as-you-go policies that fit better for those who fly infrequently.

Finance options

You need to secure finance approval before starting your search for an aircraft if you require financing to buy your plane. Only a small number of banks deal with the specialist area of aircraft finance so you may also wish to look for private companies that have in-depth knowledge of this.

The team will assist you in selecting the most suitable financial solution between loans with set payment schedules and end-of-term balloon payments and flexible repayment options and lease agreements. You need to reach an agreement first before you can start searching for your aircraft.

If you are planning to buy a plane via a broker then they may also be able to arrange finance for you. You need to understand the exact terms they present and any extra administrative fees that could result from these terms.

Pre-purchase inspection

When searching for an aircraft to buy you need to schedule a pre-purchase inspection. If you are buying a used plane you need to bring an aircraft engineer with you who will cost money but their inspection will reveal all hidden damages and maintenance delays (you must request the complete aircraft log book history as well).”

The engineer will verify all Airworthiness Directives and Service Bulletins compliance during the inspection while examining the engine and avionics and interior condition based on the inspection level. The engineer needs to conduct a thorough inspection for engine corrosion because the aircraft has been inactive for the past two years. The inspection team will provide an evaluation for your plane after they finish their inspection.

When you face uncertainty about your plane ownership duration you should evaluate how much money it will be worth when you decide to sell it. You should evaluate the aircraft based on its current TBO status and logbook condition because these elements will affect how difficult it is to sell the plane. The property will increase in value if it has received recent painting work or interior renovations.

You will also need to take the aircraft on a demo flight – use this time to monitor its performance and compare the cockpit readings with the manufacturer’s information. The pilot can evaluate the aircraft performance by using timed speed runs which start and stop at specific checkpoints.

Gather all possible information about the plane during the pre-purchase inspection and demo flight because this knowledge will help you negotiate a better price with the current owner when you decide to buy the plane.

Aircraft registration

All aircraft must be registered (this is with the Civil Aviation Authority in the UK and the Federal Aviation Administration in the U.S.A) so you will need to check the legal status of the plane. The United Kingdom provides aircraft registration information through the G-INFO Database while the United States operates the FAA Registry

Time to buy

You should proceed to finalize your purchase after completing all pre-purchase checklist items and confirming the aircraft meets safety standards and operational requirements.

For any inquiries about purchasing pre-owned aircraft or if you wish to sell your plane please feel free to contact us today by clicking Contact Us