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Tips on Buying Your Own Airplane

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It's every pilot's dream to own an aircraft of their own—no matter how new they are to learning. But it's worth stopping to consider whether you actually need an airplane before making the leap to buy one. For those who clock up hundreds of air miles a year—either as a passenger on commercial airlines or in some other pilot's chartered plane—it's probably a wise investment. But that's not the only consideration pilots are advised to make before buying their own airplane. Here are five others.

Can You Afford the Private Airline Cost?

Obviously the price for an airplane itself is the first consideration here, but it's certainly not the last. Many pilots tend to underestimate the ongoing costs associated with owning an aircraft of their own. Liability insurance is one of the essentials and, while not all that expensive on its own, may be combined with hull insurance. The latter type is calculated as a percentage of the airplane's value. It also depends on the pilot's flight time, not just overall but also in an airplane of this type. Maintenance is of course another ongoing cost. The annual inspection is unavoidable, whether you fly the plane or not, and may cost $1,000-4,000 or more.

Can You Share Some of the Cost?

Most pilots don't fly that many hours per year. It's sensible to consider how much you're going to use your airplane before buying it and considering going into partnership with others. This can help to cut down on the initial cost, as well as the ongoing maintenance fees. Be warned, though: You're better off not partnering with show-offs.

Another option is to put the airplane into a limited liability corporation or to set up a 'fractional ownership' scheme. This is a kind of timeshare whereby a managing agency takes care of the maintenance, insurance and so on. All pilots need to do is pay a buy-in fee, service fees and hourly rental fees to use it. Obviously, this cuts down on the overall cost and helps to ensure you're paying a fair share based on actual use.

Where Are You Going to Look?

Needless to say, used airplane sales are bound to be cheaper than buying new. So an obvious place to start looking for an aircraft is your local airport. Even if they don't have a dealer on site, they'll probably be able to point you in the right direction. Some other outlets to consider include Trade-A-Plane and Controller, two websites specializing in aircraft sales.

Wherever you look, it pays to keep resale in mind. It's not uncommon for pilots to change their mind after buying, or simply to use it less and less over time. Different types of airplanes hold their value better than other long-term; some always have a market to snap them up. If you opt for a cheaper model, to begin with, however, you may end up being able to sell it for less later on.

Hire an Aviation Attorney

Don't underestimate the nuanced complexity of the aviation industry. Purchases generally require a Letter of Intent and a Purchase Agreement that outsiders may not understand. So unless you're spending only a small amount on home built airplane kits, for example, you would do well to hire a specialist attorney to help make it a smooth transaction. Your Letter of Intent should identify the buyer and seller, as well as the specific aircraft and any other equipment included in the sale. It will also list the purchase price, deposit arrangements and other details of the sale, such as the rights and obligations of the buyer. The Purchase Agreement will include many of the same points. But it should also cover tax details, governing laws and default triggers and remedies among other things. Your specialist attorney will know all of this, but it pays to know what's expected yourself.

Get an Inspection

When it comes to buying a used airplane, you should consider an inspection essential. Ideally, it should be independent of the seller too. You can ensure an in-depth, expert evaluation of an aircraft before making a purchase by arranging an inspection at a reputable facility. Importantly, don't waive your right to reject the purchase of an aircraft before doing so.

A related tip is to make sure you get sufficient test flight time to determine whether an aircraft is right for your needs before agreeing to buy it. Purchases of new aircraft may also benefit from a thorough, expert inspection.

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