Sales & Purchase

How To Buy And Sell Used Aircraft

Impulsivity is one of the most common mistakes in purchasing a used aircraft. Buying an aircraft without fully considering the effects of your decision can be costly. You should take the time to analyze your requirements carefully and be realistic. Consider your typical flight load, trip distance and conditions of flight, and then compare aircraft. To avoid the trap of buying more than you need or can use, ask yourself if you really need all the fancy bells and whistles. If possible, go rent or lease the particular aircraft make and model you are interested in. This allows you to get a feel for how well it meets your requirements.
Find a good insurance company and discuss your plans. Be sure you are buying an airplane that you can get insured to fly without too much trouble. The insurance company may require you to have more hours in make and model. You need to know this up front, so you can get the experience or choose a different make / model. Often times, you may qualify for insurance after you meet a minimum requirement such as five hours of instruction in a similar make and model. By knowing these things ahead of time, you can be one step ahead of the game.
GET FINANCING APPROVAL EARLY IN THE PROCESS. The reason for this is simple: the ability to act quickly. Whether buying new or used, it’s important to know what you can afford and what the bank will lend you (assuming you’re getting a loan for the purchase). There are many aircraft lenders that can pre-approve you over the phone in as little as fifteen minutes, or you can apply online. Once you have been pre-approved, you are under no obligation to use the loan; it will just be there for you if and when you need it. This will allow you to concentrate on finding the right aircraft, and enable you to immediately make an offer when you do find it. A great buy can slip through your fingers if another buyer comes along while you’re busy trying to find financing.

Factors that affect Aircraft Value

OBTAIN THE MOST INFORMATION POSSIBLE BEFORE GOING TO SEE AN AIRPLANE. The following will be questions to ask your seller:
This will be a major factor on resale value of your aircraft. The closer an engine is to its recommended time between overhaul (TBO), the less its value. Equally important is a record of consistent use coupled with a good maintenance program. Regular use helps keep seals and other engine components lubricated and in good shape.
Be careful of the terminology used to describe engine condition. A top overhaul involves the repair of engine components outside of the crankcase. A major overhaul involves the complete disassembly, inspection, repair and reassembly of an engine to specified limits. If an engine has had a top or major overhaul, the logbooks must still show the total time on the engine, if known, and its prior maintenance history.
such as avionics, air conditioning, deicing gear and interior equipment. The big item here is usually avionics that can easily double the value of some older aircraft. Also, older equipment is generally more expensive to maintain.
ADs are issued by the FAA for safety reasons and are a fact of life for most every aircraft. Once issued, owners are required to comply with the AD within the time period allotted. It’s important to look at the AD history of an aircraft. Check the nature of the ADs and whether they are recurring or one-time compliance. Make sure the logbooks show compliance with all applicable ADs. You can search for ADs on AOPA’s Web site or you can have a list prepared by Aircraft Title and Escrow Service.
Major repairs can affect the value of an aircraft significantly, but may be hard to pin down. A damage history will decrease the value of an aircraft, depending on the type of accident, nature of the damage and the degree to which major components have been involved. Any aircraft with a damage history should be closely scrutinized to make sure it has been properly repaired in accordance with the applicable FAA regulations and recommended practices.
Check new paint jobs carefully for evidence of corrosion under the surface. Interior items should be checked for proper fit and condition. Done properly, both items enhance the value of the aircraft. Be sure to inspect the aircraft wing surfaces for hail damage which can severely affect your resale value.

Pre-Purchase Inspection

Before buying, have a mechanic you trust give the aircraft a thorough inspection and provide you with a written report of its condition. Choose a knowledgeable individual who has no fiscal interest in the airplane or selling you any other airplane!

A pre-purchase inspection should include a thorough mechanical inspection of the aircraft, an inspection of the aircraft log books and other records such as FAA Form 337 (Report of Major Repair or Alteration) and AD compliance. Ideally, the mechanic you select to do the inspection should have experience and be familiar with the problems that may be encountered on that type of aircraft.

A pre-purchase inspection is not an annual inspection, although the buyer and seller could agree to such an arrangement. It is very important to insist on inspecting the ‘deal breaking’ items first, as the aircraft may be found to be un-airworthy and be grounded. IMPORTANT: Be very careful to specify to the shop or mechanic performing the inspection that the ‘pre-purchase’ inspection will come BEFORE the annual inspection!

Poor annual inspections or improper repairs could cost a new owner thousands of dollars if not more. Be aware that 100-hour inspections are not annual inspections. It indicates only that the aircraft was found to be in airworthy condition at the time of inspection.

We at Aeronishi Aviation services help you guide to purchase and sale aircraft in smooth flow and take all the effort to make it best option successful.

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