Buying an Aircraft on AvPay

The cost of an aircraft varies significantly, depending on a multitude of variables. With this in mind it’s always best to seek the advice of an Aircraft Broker when considering buying or selling an aircraft, as they have access to tools that help determine the value of an aircraft (such as Aircraft Bluebook and JetNet) as well as tools for calculating the expected operating costs of an aircraft (such as Conklin & de Decker). In addition to this they generally have the experience and network in place, to be able to deal with any issues you may encounter throughout the buying/selling process.

Factors that affect an aircraft’s value include:

• Airframe
  • When was the aircraft built?
  • How many hours are on the airframe?
  • Are there any programs on the airframe?
  • What’s the condition of the airframe?
    • Has the aircraft been left out in the sun for long periods of time and does it require a re-paint?
    • Has the aircraft flown through adverse weather conditions such as hail and has this damaged the surface of the airframe? Aircraft require laminar flow to fly efficiently and any airframe deformations will have an impact on the aircraft’s performance. This can have a detrimental impact on the aircraft’s fuel burn, speed and range.
    • Does the aircraft have any damage history?
      • If the aircraft’s wingtip has been damaged in the hangar, has the damage been repaired by an approved organisation and is the paperwork in place, to prove the work was carried out correctly?
    • When is the aircraft next scheduled to be in for routine maintenance?
    • Is the aircraft’s logbook up to date? If an aircraft doesn’t have a complete logbook, how can you prove that maintenance work has been carried out correctly (if at all)? Missing logbooks can lower an aircraft’s value by as much as 25%.

• Engine
  • How long has it been since the engine had its last inspection and when is the next scheduled maintenance due? Different engines require different maintenance. Some piston engines only require an annual, while jet engines can require more detailed inspections at more regulated intervals. Specialist equipment may be required to carry-out certain inspections (such as borescopes for jet engine Hot Section Inspections), which will cost a lot more to complete and will therefore have a bigger impact on the aircraft’s asking price.
  • Are the engines registered on any programs, to protect the future owner against any repair work?

• Propeller
  • What’s the condition of the propeller? While taxying on the ground, small aircraft pick-up stones and they damage propellers. There are limits as to how many chips there can be on a propeller, before maintenance is required. The position of the chips also determines whether remedial work is needed. Stones have a greater impact on wooden propellers as they can lead to water ingress, which can cause a propeller to warp.

• Helicopter Rotor Blades
  • Rotor blades time-out after a certain period of time and are expensive to replace. The number of years remaining on a rotor blade has a big impact on a helicopter’s market value

• Interior
  • What’s the condition of the interior? Have there been any upgrades to the interior, such as the installation of WiFi or SatCom? When was the interior last upgraded?

• Avionics
  • Has the aircraft had any upgrades since being built? Is the instrument panel analogue, or do you have a glass cockpit? Is the aircraft fitted with the right equipment to make it compliant for the intended use (is it equipped with ADS-B for charter operations etc.)?

Is the aircraft worth the asking price? To determine this, there are some very important factors that could affect the actual value of the aircraft as well as your resale value in the future.

• Total time on the aircraft’s airframe and engine hours do influence the value of the aircraft. Having low airframe and engine hours is in some cases not a good thing, especially if the aircraft hasn’t been flown regularly. Engines might not have reached their TBO time (Time Between Overhaul), but due to infrequent use seals and other engine components may have not been lubricated properly. It is important to have a record of consistent use, paired with a good maintenance history. Don’t be afraid of considering high time engine and airframe aircraft. They are in constant flying condition and frequently maintained.
• Depending on the installation of additional equipment, avionics, air conditioning etc, the value of the aircraft could be considered to be of higher value. Be prepared to pay a little more for these additions.
• If the aircraft has damage history, it could affect the value of the aircraft that you are seeking to buy. Aircraft with damage history could see a decrease in value, depending on the type of accident, the damage on the aircraft and which major components were affected. Repairs to the aircraft should have been done properly and in accordance with the regulations and recommended practices.
• Be aware of aircraft that have recently been resprayed. Make sure the exterior paint is not superficially covering possible signs of corrosion under the surface. Recently refurbished interiors should be closely examined to determine the condition of the interior and should fit properly as designed.

It is strongly advised that you buy aircraft through a well-established, experienced aircraft broker. Any broker worth their salt will help to lead you through the process from aircraft selection, pre-purchase inspection, documentation and after-sales service. They have knowledge of the current market conditions, experience in past sales, expertise in dealing with issues along with a network of other brokers that can help smoothen-out your aircraft purchase. Establish whether the broker requires a flat fee or a percentage of the sales price to retain their services in advance. This should eliminate unexpected commission fees that you did not equate for.

Aircraft are bound by the aviation authority to which they’re registered and must be operated in accordance with the rules and regulations of the countries’ aviation authorities through which they fly. For example an aircraft may be registered with the United States’ registry (N-reg), but operated in the United Kingdom. Each registry has its own set of rules and each have their pros and cons. Some owners pick the aircraft registry for tax reasons. Popular aircraft registries that are well known for being tax efficient include the Isle of Man Registry (M-reg), the Guernsey Registry (2-reg) and the Aruba Registry (P4-reg).

Before purchasing your aircraft, you need to have a clear idea of what you’ll be using your aircraft for. For example if you’re purchasing an aircraft for recreational purposes to fly around your local area, you won’t need to worry about the aircraft’s range. If you’re buying an airplane to visit your offices 1,000 miles away, you need to ensure the aircraft you’re considering are able to reach your destination with enough fuel reserves to divert. What types of Maintenance Facilities are available at the airports you’ll be regularly visiting? Do they have the expertise to deal with your aircraft type? If not, should you be looking for a different aircraft model, to help avoid any Aircraft On Ground issues? Do the airports you’ll be visiting have the facilities to handle the aircraft you’re looking to buy, or is the one you’re considering bigger than what they can handle?

It’s also worth having some background-knowledge of the aircraft you’re considering buying, since you don’t want to end-up with an aircraft that’s likely to have issues further down the line. Some models are known for having corrosion issues once they hit a certain age for example. The best way to find a suitable aircraft that fits your requirements is to employ the services of an Aircraft Broker.

If the airports you’re flying to are relatively remote and aren’t surrounded by other airports, where is your nearest Maintenance, Repair and Overhaul Organisation, to deal with any Aircraft On Ground issues?

Buying and maintaining an aircraft can be expensive. Naturally the amount of money you spend on an aircraft depends on several factors, a few of which include: 

• The number of aircraft on the market. If there are very few of the aircraft you’re looking to buy on the market and they’re in high-demand, this will of course increase the asking price.
• Upgrades – if the previous owner has invested heavily in interior and avionics upgrades, they’ll expect to get a better price. Sellers beware – just because you’ve spent a fortune on your aircraft, it doesn’t necessarily mean you’ll get the money back when you sell it!
• Inspection status – if an aircraft has just completed its annual or 12 year inspection, you can expect this to be reflected in the asking price

When it comes to maintaining your aircraft, the price largely depends on how complex the aircraft is to maintain. Be mindful of where your nearest maintenance facility is located. While there may be a number of facilities at your home airfield, they might not always be equipped to carry-out scheduled maintenance on your aircraft, meaning you’ll have to relocate the aircraft each time work is required.

When building-up your flying experience, it’s best to start-off with something that’s stable and non-complex. Generally speaking most aircraft you typically see at the Flying Schools will fit the bill and for fixed wing flying schools you’ll frequently see models such as the Cessna 150, Cessna 152 and the Cessna 172. These aircraft are great to learn on – their high-wing design gives the pilot optimum visibility of the ground while aloft, making aerial navigation a lot easier. Other models such as the Piper PA28 are popular as the aircraft is very stable, thanks in-part to the aircraft’s stabilator. Until you have built-up some hours, it’s advised to avoid any aircraft that have volatile stalling characteristics, such as the Slingsby Firefly, as these aircraft can prove tricky to handle at slow speeds. On the rotary-front the Robinson R22 and the Guimbal Cabri G2 have been very popular with novice pilots. Their stable flying characteristics make them relatively easy aircraft to learn on and their small size make them relatively cheap to fly.

Since most brokers usually act as the middlemen, facilitating the transaction on behalf of either the owner or the seller, part exchanging / trading an aircraft is a lot rarer than in the automotive industry for example. Unless you’re lucky enough to come across an owner who’s looking to swap with your aircraft, the only way to part-exchange an aircraft is by finding an Aircraft Broker that physically buys and sells aircraft. In Europe this is possible with Aviation Sales International based out of Germany and Wilco Aviation based in the UK.