Ultimate Aircraft Buyers Guide 2024
Buying a general aviation aircraft is a significant investment that requires careful consideration of various factors. Whether you're a seasoned pilot or a first-time buyer, here's a comprehensive buyer's guide to help you make an informed decision:
1 Define Your Mission
Determine your primary use for the aircraft. Are you looking for a trainer, a personal aircraft, or a business traveller? Consider the typical distance you'll be flying, the number of passengers, and the payload requirements.
2 Research Aircraft Models
Explore different makes and models that suit your mission and budget. Consider factors like range, cruise speed, fuel efficiency, payload capacity, and avionics.
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2.1 Avionics Requirements
IFR or VFR only? This will be determined by the missions you aim to fly. Confirm that the aircraft avionics meets current regulatory requirements (like the 8.33kHz channel spacing requirements in the EU).
2.2 Aircraft Performance Characteristics
Evaluate the aircraft's performance in terms of speed, range, and fuel efficiency. Consider the airport and runway you are planning to use as a home base - are the take-off and landing performance requirements for the aircraft sufficient? Are avionics meeting the home airport navigational equipment and procedures?
3 Define Your Budget
Establish a realistic budget that includes not only the purchase price but also operational cost and cost for maintenance. Research the maintenance requirements and costs associated with the aircraft you're considering. Investigate the availability and cost of replacement parts(!). Some of the replacement parts might come with a hefty price tag. This is especially important if the aircraft of interest has parts that needs to be changed.
Use a spreadsheet to view all the expenses involved and work out a rough running cost for the aircraft depending on how many hours a year you might fly. An aircraft that is flown more often usually ends up costing much less as an equivalent cost per hour compared to an aircraft that is not used frequently.
- What's the TBO of the engine and propeller?
- Insurance cost?
- Fuel consumption?
- What maintenance shops are available?
- Cost for annual inspection?
- Cost for Continuing Airworthiness Management?
- Hangar rent?
- Loan payment?
- Taxes?
If you’re unsure of the running costs for a particular aircraft, contact the seller of that aircraft and ask them. Social networks and forums often has aircraft owners' groups for specific aircraft types and models – aviation is tightly-knit community, and most will often share their experience and knowledge.
Set up an engine and maintenance reserve account where you and potential partners can deposit funds for planned and unplanned maintenances. An engine overhaul can be a very expensive experience, so it's wise to have secured the funds in advance.
Find 1-3 partners to own the aircraft together with. This will lower the financial risk and cost of ownership drastically. Not less important, owning an aircraft together with friends are much nicer and more social than hanging around alone in the hanger.
3.1 Get an Insurance Quote
Obtain insurance quotes early in the process to include it in the fixed yearly costs estimates. Consider factors like pilot experience, the aircraft's value, and intended use when getting insurance quotes.
3.2 Aircraft Taxes might affect the purchase price
When buying an aircraft, there are several tax considerations that a buyer should consider. Tax regulations can vary between counties and throughout the EU member states, so it's important to consult with a tax professional who is knowledgeable about aviation transactions in the specific country where the purchase is taking place. Here are some general considerations regarding taxes when buying an aircraft in the EU:
Value Added Tax (VAT): VAT is a consumption tax that is applied to the purchase of goods and services. In the context of aircraft transactions, VAT is a significant consideration. The buyer may be liable to pay VAT on the purchase price of the aircraft. The standard rate of VAT in the EU varies by country, but it is typically applied to the entire transaction value.
Import Duties: If the aircraft is imported from another country, additional import duties may apply. The rate of import duty can vary depending on the country of origin and the specific aircraft type. Some countries within the EU may have exemptions or reduced rates for import duties on aircraft, especially if the aircraft is intended for certain purposes, such as commercial air transport.
4 Aircraft valuation, when you have found your dream aircraft
Research the historical resale value of the aircraft model you're interested in. Consider factors that may affect resale value, like:
- Engine hours
- Engines last overhaul
- Total airframe time
- Calendar time or hours left on the propeller (before overhaul is suggested)
- Magnetos last overhaul
- Avionics installed
- Other equipment installed?
- Are all Airworthiness Directives complied with?
- Damage history, check with the national accident commission and investigation websites
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Appearance and condition both interior and exterior, check:
- Seat condition
- Paint
- Windows
- Tire condition?
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Aircraft records that should be in place:
- Airworthiness certificate
- Engine, propeller and airframe logbooks
- Aircraft equipment list
- Updated weight and balance sheet
- Approved aircraft flight manual or owner's handbook
5 Pre-Purchase Inspection is a must do!
Engaging in a thorough pre-purchase inspection is a crucial step in mitigating risks and ensuring that the aircraft meets safety and airworthiness standards. It provides the buyer with valuable information to make an informed decision and negotiate a fair deal with the seller. It is highly recommended to hire a qualified aircraft mechanic or an inspection service to conduct a thorough pre-purchase inspection.
The inspection should cover all aspects of the aircraft, including the airframe, engine(s), avionics, propeller(s), and all systems. Inspect for corrosion, damage, wear and tear, and compliance with airworthiness directives (ADs) and service bulletins (SBs).
Review the aircraft's maintenance logbooks and records to ensure that all required inspections, maintenance and repairs have been properly documented.
Verify the functionality and condition of all avionics equipment and instruments.
Take a test flight! Evaluate the aircraft's in-flight performance, check for any abnormal vibrations, handling characteristics, or anomalies.
Post-Inspection Report, use the inspection report as a basis for negotiations with the seller. Address any discrepancies or issues discovered during the inspection and determine how they will be resolved.
6 Sales Contract
Be prepared to negotiate the purchase price based on your research and the pre-purchase inspection. Create a standard sales contract that also covers additional equipment which comes with the aircraft.