Purchasing an Aircraft and Due Diligence

When purchasing an aircraft there are several levels of due diligence that one should consider taking.

First make sure you get a value on the aircraft from a reputable source such as AOPA’s VREF.

The second and possibly most important is to get a pre buy inspection done by a third party not associated with the transaction. The pre buy inspection should identify any outstanding condition issues with the aircraft. This will cost you on a single engine aircraft between $500 and $1500, however it can save you tens of thousands of dollars in the long run. This should identify not only any previously unaddressed maintenance issues, but any potentially hazardous safety issues with the aircraft. During this inspection a thorough examination of the aircraft logbooks should be done. The logs should be complete and cover the life of the aircraft.

The third step I would recommend is having a proper damage history and title search conducted by an agency. Many sources can be found on the AOPA website. This should identify any liens or encumbrances with the ownership status of the airplane. The last thing you want to do is purchase an aircraft that money is owed on. This report should also include any damage history of the aircraft. While there is nothing wrong with purchasing an aircraft that has been properly repaired you do want to make sure this is investigated in great detail during the pre-buy inspection.

I would also recommend hiring a commercial pilot with time and experience in that airplane to conduct a test flight of the airplane. They should text all functions of all equipment in the airplane. They should also make sure the aircraft preforms to the manufacturers specifications.

If all of this checks out and you decide to move forward with the purchase of the aircraft have a title agency handle the transaction. This ensures that all the paperwork is done correctly, and that the transaction is completed as agreed to. My personal recommendation is that all funds are escrowed through a third party until the transaction is finalized. This means that the buyer takes possession of the aircraft and logbooks, and all terms of the deal are satisfied.

I would also check the reputation of the person you are purchasing the aircraft from. The aviation community is small. We all know one another. Chances are if someone does not have a good reputation in the industry it is deserved.

Do not be scared to walk away from a deal. If something does not check out move on. There is no such thing as a great deal in aviation. If it sounds too good to be true it is.

Signs to watch out for: new pant and interior. If a plane is being sold at a “great price” and it has newly upholstered seats and or a freshly painted exterior, it is most likely lipstick on a pig. Folks get excited about a great looking plane, but many times this is a distraction and is hiding serious deficiencies in the maintenance department. You do not fly the seats you fly the airplane.

This can be a stressful process, but with a machine that you are putting your life on the line and possibly the lives of your loved ones and the public you want to make sure you are safe physically and financially.

Nick Sanderson is a Commercial Pilot with instrument and multi-engine ratings. Nick is also a member of the FAA’s FAASTeam. For more information on the wings program and aircraft ownership please visit www.faasatety.gov This writing is not legal advice and the author is not a representative of the FAA or any other agency.