Avoid 7 Common Mistakes That First-Time Aircraft Buyers Make

But with the exception of stories about wasting time and money with the wrong-for-you flight instructor, there is perhaps no more painful tale than that of the first-time aircraft buyer who made a poor (and costly) purchase decision simply because they were not aware of the pitfalls associated with buying a used aircraft.

Caveat emptor is Latin for “let the buyer beware,” especially when it is a big-ticket item like an aircraft. Depending on the fluctuations in the market, you could spend as much on a used aircraft as you would for a three-bedroom house in certain parts of the country. It pays to take precautions and get expert assistance in the process. 

We’ve taken the liberty of creating a list of seven of the most common mistakes first-time aircraft buyers make—and how to avoid them.

The escrow agent is a neutral third-party holding the funds and the documents required for the transaction until both the buyer and seller have authorized the closing of the sale. Using an escrow agent is beneficial for both the buyer and seller.

For the buyer, the escrow agent will order a title search that includes records for the aircraft and will help verify the ownership. This is huge, because there are some unscrupulous people who will “sell” an aircraft for a relatively low price for cash then disappear. When the buyer tries to take ownership of the aircraft, they find out that the seller was not the legal owner.

In addition to verifying the owner, an escrow agent ensures there are no outstanding liens or encumbrances on the aircraft. They will also assist with the details of the transfer of ownership such as making sure the bill of sale or additional documents needed to provide clear title are found and delivered.

Buyers benefit from escrow as it keeps their funds in a secure account until they have provided their registration documents and authorized closing and disbursement of funds. For the seller, the escrow agent ensures the seller receives payment via wire transfer rather than waiting for a check to clear.

When purchasing a pre-owned automobile, you are often inheriting someone else’s problems—aircraft can be the same way. To protect yourself from potentially purchasing an aircraft with a variety of known or unknown conditions that could be costly to repair, or even worse, may render the aircraft unairworthy—such as an AD that has not been addressed—insist on a pre-buy inspection from a qualified aviation mechanic who has not performed maintenance on the seller’s aircraft.

You don’t want to be the person who thought they were getting a deal on an aircraft for $36,000 only to learn after the fact that it will take $50,000 (or more) to make it airworthy. Perhaps the previous annual inspections and maintenance were perfunctory at best, and there are gaps in the maintenance logbooks. Or, worse yet, the logbooks are missing, and there is no record of damage history, AD compliance, etc.

The mechanic who has never worked on the aircraft before brings fresh eyes to the airframe, engine, and propeller logbooks. They may catch issues that someone who regularly maintained the aircraft missed or dismissed as quirks.

If you can, find a mechanic who specializes in that type of aircraft. If it has a type club or organization, reach out to see if there is a mechanic it recommends who has a great deal of experience and knowledge about the aircraft in question.

This can be tricky. Aircraft need to be in compliance with the requirements of an annual inspection to be legally flown. If you need to fly it to another airport for maintenance, you will need to get a special flight permit (SFP), commonly referred to as a ferry permit. The ferry permit is issued by the Flight Standards District Office geographically responsible for the area from where the flight will originate. 

There is an online form that asks basic questions about the aircraft—why it needs to be flown someplace else, any issues that need to be addressed for safe flight (such as “retractable landing gear need to remain down and locked”), along with information on who will pilot it. The form notes the “ administrator may require the applicant to make appropriate inspections or tests necessary for safety,” which means the FAA can require an A&P to inspect the aircraft before the ferry permit is issued. Depending on how busy the FAA is, it can take awhile for the permit request to be processed. 

Also note that aircraft need to be flown on a regular basis to stay healthy. If the aircraft has been out of annual for more than a month, find out why. Is it because the shop or the AP/IA has a waiting list and the airplane turned into a pumpkin before it could get in for the annual? Is there an expensive AD that grounded the aircraft that the owner decided not to address? Did the mechanic disappear mid-project? Did the owner of the aircraft die and their family is now trying to sell it? 

Go through the maintenance logbooks very carefully to see if the delayed annual is a pattern.

It is not uncommon for aspiring pilots with money to buy a turbo-something, multiengine something, or complex aircraft (and I do mean retractable gear) with the intent of learning to fly in it. But they are hamstrung when they can’t find an instructor who has experience in that make and model.

Although CFIs must hold a commercial pilot certificate (with the exception of light sport aircraft), the 2018 change in cFAR 61.129 resulted in many pilots earning their commercial tickets in aircraft that meet the FAA’s definition of technically advanced aircraft (meaning glass cockpit equipped with an autopilot) rather than complex aircraft (as defined as an aircraft with a controllable pitch propeller, flaps, and retractable gear). 

Additionally, the insurance company may require the CFI to have a specific amount of time in the make and model before it will cover them because a no-time or low-time pilot candidate is also a risk. If the insurance company wants the CFI to have at least 500 hours total time and 25 hours in the make and model, it may be a challenge to find this instructor. And if you get into a situation where your airport is an hour away from a qualified instructor, your training is likely going to cost more and take longer than expected.

Here again, before you buy that aircraft, seek advice from the members of a type club for the model as it often has a cadre of experienced instructors who can help you train.

Before you buy an aircraft, determine how it will be primarily used. This is one of those times where form, function, and finances go hand in glove.

If you want something to fly around the pea patch for giggles and grins by yourself or one other person, a light sport might be just the ticket. If you want something that can easily take your family and vacation luggage across the country, you’ll probably want to get something a little larger than a two-place trainer with a high-time engine. If you are looking for an inexpensive aircraft to build your time, a slower, two-place model may be perfect.

If you aren’t sure what the mission will be, or you are looking for versatility, it behooves you to research multiple aircraft and talk to the owners who fly them. You might even be able to persuade the owner to take you up on a test flight in what for you will be a typical mission.

You will also want to think carefully about how many hours you will be flying a month. If it is less than 10, will you be getting a return on your investment? If the answer is no, you might want to consider finding partners to share the cost of the aircraft.

Buying the aircraft is not the only expense. Would-be aircraft owners need to factor in operating costs, such as routine maintenance, unscheduled maintenance, annual inspection (even 100-hour inspections in commercial applications like flight training if leased back to a flight school), and the big kahuna—insurance.

According to aircraft insurance brokers, they get phone calls daily from potential aircraft buyers who want to know the cost of insuring a particular aircraft. This information should go into the decision making.

Once again, a type club can be a great font of knowledge and resources when working out operating costs. Type clubs often have CFIs in their groups who can provide specialty training in the particular aircraft to the delight of the insurance companies who want the pilot/owner to be well trained rather than a statistic.

Type clubs can also help the aircraft shopper determine what they can expect  for the cost of the first annual. Many new aircraft owners walk into the situation blind and are surprised when the bill comes for the first annual and then the aircraft goes back up for sale because they can’t afford to keep it.

Buying a fixer-upper with the intent of quickly returning it to airworthy status can be a recipe for disappointment. The word “quickly” is relative, but unless you are an A&P/IA and have a great deal of time and money on hand, there won’t be anything quick about it.

You are buying a project, not an almost-ready-to-fly aircraft. Manage your expectations. That is not to say working on a project aircraft can’t be fulfilling. Every year at EAA AirVenture, you hear about multigeneration aircraft restoration projects—many of which become award winners.

You just need to be realistic about how long it may be before you actually fly it rather than an almost-ready-to-fly purchase. Another area that can take you down the maintenance rabbit hole is the aircraft panel. This is another place where you must carefully consider the mission. While it would be cool to have period-correct instruments in the panel of the 1940 Spartan Executive, it probably wouldn’t be the best choice for an aircraft you intend to fly single-pilot IFR at night. It can also be a challenge to find period-correct instruments and aircraft components still supported by a manufacturer. If the manufacturer has gone out of business and the components are no longer supported, if something fails (and it will), you are on your own.

We’ve walked through the challenges. Now let’s talk about the joy of buying an aircraft. 

According to people who have done both, becoming an aircraft owner is very much like becoming a parent. You know it is a big responsibility. You’ve thought about it your whole life, and weren’t sure you were ready. You know it will (likely) bring you great joy, along with (possibly) some moments of distress, but it will absolutely change your outlook. You suddenly have a whole new set of friends (aircraft owners are a gregarious lot), you will share stories, and there will be so many photographs taken of “the new baby.” Enjoy the experience.

This feature first appeared in the January Issue 954 of the FLYING print edition.