Welcome to this week’s edition of Clearance To Fly, your trusted guide for buying your first aircraft. I’m a pilot who’s spent years in aircraft financing and purchases, and I’ve seen how small details can make or break a deal. One question I hear all the time: “How do I avoid mistakes when buying an airplane?” The short answer? Work with a broker, know your mission, get financing in place, review the logbooks, understand engine times, never skip a pre-buy, and know the real cost of ownership.
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Start with a Seasoned Broker
Purchasing an aircraft is a significant venture that requires careful navigation through a maze of details and decisions. Engaging a seasoned broker can be the key to a smooth experience, providing invaluable guidance and expertise. Much like a skilled co-pilot, a knowledgeable broker can pinpoint potential pitfalls and steer you away from costly errors. Their deep understanding of the market intricacies transforms the daunting task into a manageable process, breaking it down into clear, actionable steps that align with your priorities.
Select the Right Aircraft for Your Needs
Understanding your flight mission is essential when selecting an aircraft. It’s easy to be captivated by a model that is overkill for your requirements. Define your primary usage, whether it’s short flights with minimal passengers or extensive family journeys and choose accordingly. While the Cirrus SR22 boasts cutting-edge tech for seasoned adventurers, a versatile Cessna 182 might more practically suit a solo flyer with an emphasis on utility over luxury. Rely on your broker to help you make these decisions. They have been around the block a time or two and understand what aircraft are best fit for certain missions.
Secure Pre-Approval for Financing
Diving into the world of aircraft acquisition without pre-approved financing is akin to embarking on a voyage without a map. At FLYING Finance, we streamline the pre-approval process, which is crucial for setting a clear budgetary framework. Pre-approval not only sharpens your focus by establishing financial parameters but also strengthens your position as a serious buyer, elevating your chances of securing the aircraft that meets your needs swiftly and confidently when the opportunity knocks. You can use this handy finance calculator to understand your buying power and monthly payments that will fit your budget.
Conduct a Meticulous Logbook Review
A comprehensive logbook review is an essential part of the due diligence process and should never be overlooked. These records are the aircraft’s autobiography, chronicling its airframe hours, engine hours, and any significant repairs or modifications. Uncovering a history of intensive flight school use might indicate higher maintenance demands, contrasting with the wear patterns of a more privately owned aircraft. Identify any anomalies early to anticipate future maintenance issues, saving you from unexpected burdens post-purchase.
Prioritize Engine Condition Over Appearance
When evaluating potential aircraft, it is crucial to prioritize the mechanical condition, particularly engine hours, over cosmetic appeal. The allure of a shiny exterior can sometimes mask substantial mechanical shortfalls. Engines nearing their time before overhaul (TBO) translate to impending financial outlays, while engines with too few hours may suffer from lack of use, leading to costly surprises. Thus, focus on the engine’s lifecycle to ensure it aligns with your operational expectations and financial readiness. If your seller doesn’t have a spec sheet filled out, visit our website here and have them fill out our online spec sheet. This can be extremely useful to write out all the pertinent aircraft features, hours, and upgrades in one place.
Insist on a Pre-Purchase Inspection
A pre-purchase inspection is non-negotiable and serves as your airborne assurance policy. It uncovers hidden defects that may not be visible even to the trained eye skimming through spotless logbooks. Just as you wouldn’t buy real estate without a structural survey, this inspection acts as a safety net, protecting you from the unforeseen turbulence of unexpected repairs or discrepancies, which could otherwise skyrocket your ownership costs. If you need a pre-buy from, feel free to email me and I will provide you our template. Its easy and mechanics love it!
Understand True Cost of Ownership
Beyond the initial purchase, the true cost of ownership extends into routine expenditures like maintenance, storage, and fuel, which can affect the sustainability of your investment. A less expensive aircraft might impose unexpected long-term financial burdens if prone to inefficiencies or higher maintenance needs. Reconciling these ongoing costs with your budget will ensure that your ownership journey remains as joyful as the initial acquisition. Keep in mind that you might want to understand how much an overhaul will cost you down the road. If you plan on keeping the aircraft for an extended period of time you will benefit from this financial planning. Think about setting up a separate savings account and anytime you fly the aircraft, put some “reserve” aside for unexpected maintenance. Trust me, it will happen.
Take Your Time
Slowing down the acquisition process allows a comprehensive exploration of all variables. Each step from research to final purchase is an opportunity to gather information and validate choices with thoughtful deliberation. With patience and the right professionals, such as those at FLYING Finance, guiding your way, you are far more likely to find the perfect aircraft, ensuring not just a successful purchase but a fulfilling ownership experience.
Finally, FLYING Finance is here to navigate you through the financial maze of buying an aircraft. We offer resources like our pre-buy form to ease your journey into aircraft ownership.
P.S. Got questions about aircraft financing or the purchasing process? Drop us a line at FLYING Finance. We’re always happy to chat about planes and how to get you into the cockpit of your dreams! 423-402-8982
Keller Laseter, Chief Commercial Officer, FLYING Finance
Bringing over 10 years of aviation experience and multiple years in finance, Keller Laseter combines both of those skills to be FLYING Finance’s CCO. His leading knowledge in all categories and classes of fixed wing aircraft helps guide you through the finance process with ease and will leave you knowing you’re in great hands. Keller holds type ratings in the Beechjet 400A/XP/NXT, Embraer E-175 and has many hours in King Airs, along with other high-performance aircraft. Throughout his career, he’s had the opportunity to enjoy the world of aviation and many different operations. As an ATP, CFI, and CFII, aviation is in his blood.
