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These days many first time aircraft buyers are being lured to what appear to be, and probably are, great opportunities. Individuals and corporations alike are slowly coming back to the idea of corporate aircraft ownership, but this in no way signifies a turnaround in the market of aircraft for sale. In fact, the market is down and buyers are scarce. This article is meant to prepare those new to the market and help you ask the right questions and understand the complex process of buying an aircraft for sale. The first thing you will need to organize is your “Mission Profile.” What is your estimated annual use, required flight range, aircraft size, and so on? While you can’t really anticipate every flight you will need to make in a year’s time, it is still possible to develop a list of destinations and trip patterns so you can focus your search for an aircraft that meets your needs. Compromises can always be made to balance with desired capital outlay, operating costs and other factors. Your next task will be to review the performance characteristics of the different aircraft you are considering. Having a grasp of the manufacturer’s product lines is vital. It will help you pick out the best from contending makes and models and help you start building a budget. Be wary of becoming intoxicated by the idea of the cheap prices of certain planes. There’s a reason some planes are so cheap, which usually means bad news for the buyer. Manufacturers will soon begin to take advantage of the FAA Aging Airframe regulations to limit parts and field support for older aircraft for sale. A cheap price on an aircraft can in no way make up for poor performance. Make sure your prospective aircraft meets the greater test of Dispatch Reliability, Field Support and Parts Support. For some, the next step proves to be too much for the first time buyer: Budget. Get realistic about price and cost up front with the help of an aircraft professional. Take the projected total hours per year to be flown, then calculate in the fixed and direct costs along with considering additional investments over time. Based on your choice of aircraft for sale, a direct cost per hour can be derived. The direct cost will include factors like fuel, maintenance, catering, engine reserves, landing fees, etc. This type of information can usually be found on the individual manufacturer’s website. After gathering hourly costs, you will need to factor in any annual costs, such as pilot’s salaries, benefits, mechanics, hangar, insurance and pilot training. Try building your budget over a minimum five-year projection. Look at a residual value component to really understand the total cost of aircraft ownership; projected inspection, modernization and refurbishment cost and tax consequences over time based on the final individual aircraft chosen for consideration. Your tax and legal advisors are critical team members to include throughout the budgeting process.
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