One of the most important decisions that you will have to face is the aircraft meeting your personal standards of style and taste, as well as your budget.

One of the most important questions you need to be asking yourself is, what will you be using your aircraft for?

Think about what is important to you in an airplane and make a list, arranging it from the most important to the least important. This will help you determine which plane is right for you.

You must consider the cost of operating and maintaining the aircraft. The purchase price of the aircraft is only part of the affordability.

Once you know what your budget and basic needs are, you can start to compare aircrafts to see which the right choice is for you. Performing a cost comparison for the different types of aircraft you are interested in will help you narrow down the market.
Once you have chosen a make/model be sure to read through the specification and performance details thoroughly as this will give you a good idea of what you can expect as an owner and what to look out for when buying your plane.

Your experience level as a pilot greatly determines which types of aircraft you qualify for insurance in, as well as your yearly premiums. A good idea would be to begin contacting insurance companies. A quick conversation with an insurance company may save you from wasting time looking at aircrafts that you can't get insured on. You may qualify for insurance after you meet a minimum requirement such as five hours of instructions in a similar make and model that you are look to buy. By knowing these things you can be one step ahead of the game.

Knowing how similar aircraft have been priced can be very helpful in determining if the price of a specific aircraft seems fair. Remember, each aircraft is different so you will have to consider all the variables when making your comparison, keeping in mind those factors that are most important to you.

Factors That Effect Price

Engine Time: Engines have a limited life expectancy or TBO (Time Before Over). This number is based on when the average engine needs to be overhauled. If you purchase a plane that has 1500 hours on an engine with a 2000 TBO, you will have approximately 500 before you need to overhaul the engine. You should know it may be harder to sell your plane as it approaches TBO. If you purchase a plane that has 1150 hours on an engine with a 1200 TBO, you should make sure you have enough money to perform an overhaul.

Exterior Condition: Painting an aircraft is very time consuming and can be quite costly so an aircraft in above average condition is worth several thousand dollars more than one that requires paint. Corrosion is another thing to consider. Many aircrafts have it, especially if they come from humid areas near salt water. Depending on the severity, it does reduce the value of the plane. It is always a good idea to get a mechanics opinion on this matter.

Interior Condition: Like painting, refurbishing the interior also requires a fair amount of time and money. Seat covers can always help extend the life of an interior, but a new interior adds a few to several thousand dollars depending on the number of seats.

Avionics: Radios play a major role in determining the value of the aircraft, adding more than $20,000 in some cases. Aircraft Blue Book has a formula for calculating this value. Vref also has a system for considering avionics upgrades. A qualified aircraft broker can help you put these figures into perspective.

Options/Modifications: Many airplanes have after market modifications that enhance the beauty or performance of the plane. It's important that these mods all have the proper FAA paperwork and log book endorsements. Some modes increase the value of the plane, while others improve the marketability.

Location: Always consider the aircraft's location when determining value. You should always calculate the cost involved in getting to the aircraft as well as what it will take to bring it home.

Research Your Aircraft

Gather all the information related to your aircraft including, a complete list of specifications, photos, maintenance history, etc. Knowing the history of an aircraft is essential. All maintenance should be complete and well documented. Aircraft with missing records or major damage may still be good, but they are usually worth less and you may want to speak with a broker to determine value in a situation like this.
When buying a plane, the owner/seller should be willing to provide you with all the information you request.

Put a Deposit Down on the Aircraft

After you have review all the available information about the aircraft and you feel comfortable that this aircraft is the one you want, you should now put down a deposit; this will remove the aircraft from the market. By doing this you have secured the aircraft while you make arrangements for a pre-purchase inspection.

This tells the seller that you are serious about the aircraft. This give you first rights to the plane. A purchase agreement should be signed by both parties, outlining the terms of the sale. Before sending your deposit money, you should trust the seller, make sure you understand and agree to the terms of the sale, and be sure you understand and agree to the terms of the sale, and be sure your deposit is refundable. It is common for the seller to retain a small portion of the deposit, if there were expenses involved, but this should be clearly outlined beforehand.

Escrow Services

If you find a plane you like but you are not comfortable sending a deposit to the seller, you can enlist the services of an Escrow Company. For a fee, an escrow service will hold the money and the aircraft documents until both parties give authorization for release. Then the money and documents are disbursed to the appropriate parties.
Most Escrow companies that charge for their services are insured by the FDIC. This is not always the case, so it is a good idea to verify this before you send your money to a third party.

Pre-Purchase Inspection

The pre-purchase inspection is the financial responsibility of the buyer and money well spent. If there is anything wrong with the aircraft you want to know about it before you become the one responsible to fix it. A mechanic of your choice will be hired to be your "technical guru". He or she will be your eyes and your advisor at this point. To minimize the expense, we recommend you find a mechanic near the aircraft to perform the inspection. We can help you locate a respectable mechanic or give you a list of names in the local area for you to review.
In order to assist the mechanic in thoroughly examining your aircraft, we will supply the list of aircraft specifications along with a pre-purchase inspection checklist required by many of the financing institutions. Your mechanic will verify the spec list plus inspect the aircraft, its engine, avionics, equipment and documentation. Afterwards, you will talk to your mechanic on the phone about the condition of your aircraft, both mechanical and cosmetic. It is your responsibility to make sure you fully understand the results of the inspection. If something doesn't make sense to you, ask questions or get a second opinion. As long as the aircraft is found to be in the same condition as advertised, the sale will proceed.
If something undesirable does comes up in the inspection, it doesn't necessarily mean the sale can't happen. It just means both sides need to come to an agreement on a solution. The seller may opt to fix the problem or renegotiate the price, either way; a solution is often possible that will make both sides happy.

Verify the aircraft has a clean title

If there is an old lien on the aircraft, you cannot get financing and worse yet that person could have a claim to your airplane. Finding this out ahead of time could save you time and the expense of costly attorneys' fees.

There are companies with access to FAA records that can perform a title search for you. It will list any liens against the aircraft or site that there are none. Any old liens must be released by filing the correct release of lien paperwork with the FAA, signed by the original lien holder.

Get a Quality Insurance Policy

When it comes to insurance, ask questions and shop around, it could end up saving you a lot of money!

Arrange Final Payment

At this point you will wire transfer the remaining balance due on the aircraft.
If you are using an escrow service, you will have to send them all the required documents including the signed bill of sale and they will be waiting for your final authorization to transfer funds.

Closing Paperwork

You will be responsible for the release of the lien and register of your aircraft to the FAA, as well as any additional necessary payments and taxes.

Bill of Sale: A signed copy of the Bill of Sale should be retained by both the buyer and the seller for their records and another copy must be sent to the FAA for filing.

Federal Aircraft Registration: A signed copy of the registration must be sent to the FAA along with a check for $5.00 to cover the filing fee. The pink copy of the registration will serve as your temporary federal registration and must remain in your plane until you receive your permanent registration in the mail.

Release of Lien: If there is a lien on the aircraft, the proper release of lien paperwork must also be filed with the FAA.

Pick Up Your Plane or Make Delivery Arrangements

You are now the proud owner of your new plane. You will need to find a hangar or tie down space to store your plane and you will be responsible to get it to its new home. Many buyers enjoy the adventure of flying their plane, sometimes across the country, to get it home. Others don't have the time or the experience and prefer to hire someone to deliver the plane. There are several options for delivery. You could hire a commercial pilot to bring you the aircraft or you could hire a flight instructor to fly with you. We can help you make an arrangement that will accommodate your needs.