What You Need to Know About Pre-Buy Inspections for Aircraft

Purchasing an aircraft is a significant investment, and ensuring that you’re making a sound financial decision requires careful due diligence. A critical step in the process is the pre-buy inspection (also known as a pre-purchase inspection, or PPI), a thorough evaluation of the aircraft’s condition. 

An inspection by a neutral third party not only protects buyers but is also a requirement for most aviation lenders as a safeguard on their investment. 

If you’re in the market for an aircraft—especially if you’re planning to finance—you’ll need to get your inspection arranged as the first step before  starting the process of finalizing the sale. 

A pre-buy inspection is a detailed examination of an aircraft’s flightworthiness, maintenance history, and overall condition. Conducted by a licensed aviation mechanic or maintenance organization, the inspection uncovers potential issues that could impact the aircraft’s value, safety, or operational costs. 

Unlike routine maintenance or annual inspections, a pre-buy inspection is both a tool for negotiating and a precaution to protect your interests. The findings can highlight necessary repairs or even deal-breakers, and that’s all info you’ll want to know sooner than later. 

Aircraft financing is a unique niche in lending, and lenders take on significant risk when providing loans for aircraft purchases. A pre-buy inspection is one way to mitigate that risk.

Aircraft are generally used as collateral for aviation loans, just like homes and cars for their respective loans. A pre-buy inspection ensures that the asset’s condition aligns with its appraised value. 

It’s an investment not just for you, but also the lender, after all. 

The scope of a pre-buy inspection depends on the aircraft type, its history, and the lender’s requirements. Here’s what a typical PPI includes: 

Airframe

Engines and propellers

Avionics and systems 

Maintenance records 

Interior and exterior 

Select a certified mechanic or maintenance facility experienced in inspecting the specific make and model of the aircraft. Always be sure they have no direct relationship with the seller and no conflict of interest. 

Work with the inspector to define the depth of the evaluation. If, for instance, the listing or your surface level viewing of the aircraft raises any red flags (like rust or accident history), there might be specific components that require more attention and even disassembly.

This might also vary depending on the aircraft’s age and maintenance history. 

The seller, of course, has to give you and your chosen technician access to the aircraft, its logbooks, and other records. It’s traditional for the buyer to cover costs, and it’s worth noting that any seller who balks at the idea of a pre-buy inspection should be avoided at all costs.

There are currently no FAA regulations that apply to a pre-buy inspection, nor are they standardized nationally. Always talk to your lender before you start the process to make sure you follow its parameters and don’t waste your time and money. 

Thankfully, the FLYING Finance team is here to walk you through the process and provide details. Our financial and aviation contacts have all the resources you need to finalize your sale correctly.

Even if your situation doesn’t require a pre-buy inspection, you should always get one anyway. A small investment prior to the buying process can mitigate your risk, both financially and in the air. 

Intimately knowing your aircraft is part of being a responsible flyer.  

If you need a list of qualified specialists for your pre-buy inspection, call FLYING Finance today.