Here’s how to buy an airplane, once you have decided to buy rather than lease an airplane. Simply put, the buy or lease decision for an airplane is similar to that for a vehicle.
How long do you plan to own? How much do you plan to use it? How much money do you have or want to use as a down payment?
If you buy a brand new airplane there is less you need to know in advance. Since it comes with a warranty, you are protected from major repair surprises.
You will get better fuel consumption than you would on an older model. You will get the latest bells and whistles inside. That means a glass cockpit and a first class navigation system. Another advantage of buying a new airplane is that you get to choose the colors and fabrics. That way you buy an airplane that looks exactly like you want it.
When you buy an airplane your initial cost consists of several items. You will have your purchase price or, more likely, your down payment. If the airplane is used, you will need some fix-up costs to put it in the condition you want. You also have to plan on your closing costs. Registration is required. Set aside a reserve for repairs, since they can come at any time.
If you are going to buy a used airplane, how old a plane are you willing to buy? You can figure on a lower purchase price for a used airplane. Generally, the older it is, the cheaper it is. That is, unless you are talking about a classic airplane or antique airplane. The older planes will require more maintenance. You may want to buy an airplane with a common engine, like Continental or Lycoming. Their airplane parts are easier to obtain, especially when it’s buy airplane propeller time.
When you buy an airplane your initial cost consists of several items. You will have your purchase price or, more likely, your down payment. If the airplane is used, you will need some fix-up costs to put it in the condition you want. You also have to plan on your closing costs. Registration is required. Set aside a reserve for repairs, since they can come at any time.
You also have ongoing costs. If you have a loan you will have your financing cost. Buyers use banks, finance companies, and lines of credit not secured by the aircraft. You need aviation insurance to cover the airplane and your potential liability. After you buy an airplane you will have storage costs for your parking space or hangar. As you use your airplane you will have fuel costs and airfield fees. Be ready for maintenance and your annual inspection. Oh yes, you also can expect property taxes. If you’re not going to fly the plane yourself, you must budget for the cost of an airplane pilot.
What are your intentions for your airplane? Is it for business or pleasure flying? What range do you require? Do you feel the need for speed? Remember that speed costs.
You have several options when you buy an airplane. You can get a jet or single or twin engines. Do you want turbocharged or aspirated? What seating capacity do you need? How do those seats need to be arranged?
There are many sources of airplanes for sale. You can buy a new airplane direct from the manufacturer. There are aircraft dealers. Word of mouth is a great source for buying a used airplane. You can read classified ads in newspapers. There are several popular magazines and websites with ads and photos. You also can buy an airplane at an auction.
Your aircraft purchase process starts with phone screening. That will save you time when you buy an airplane. After narrowing your prospects, do a buyer inspection. You want to check the condition, engine hours, and airworthiness directive (AD) compliance. If you like what you see, go on a test flight.
Once you narrow your choices to one airplane, get a mechanical inspection by a professional. Follow that with an aircraft title search and your closing and you will buy an airplane the right way.
May the wind always be at your back, except when you are taking off or landing your airplane.
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