One of the best places to buy a quality, almost new plane at a price well below retail value is at an auction. Brand name and premium aircraft (Cessna, Beechcraft, Piper, etc.) are often converted to state or bank aircraft.
property when its owners cannot pay debts and must be sold quickly to avoid substantial storage and maintenance costs. Because of this, it is sometimes possible to get quality near-new aircraft for 80-90% off the retail price.
Buying an aircraft is an important investigation and should be done with due care. This is especially true if you are an inexperienced and/or first time buyer. The sums involved are close to what a country
for a home, so just like real estate, getting an expert appraisal is the safest way to go. However, that is quite expensive and not everyone feels that they want to do that research, especially when they are just buying a used plane.
In order to help first-time buyers, I’ve put together the top 10 things to consider when buying a plane at auction. Many of them are similar to recommendations for buying a used car, and in fact experienced pilots basically approach airplane purchases in a similar way. Still, there are some aircraft-specific points to pay attention to.
10) Obtain a copy of the FAA Type Certificate for the aircraft you are interested in. You can get one on the Internet at http://www.faa.gov/aircraft. Here you will find all aircraft specifications – applicable
engines, propellers, gross weight, curb weight, speeds, etc. Also, get information from the AOPA (Aircraft Owners and Pilots Association). They have lots of detailed information, forums, and guides on buying used aircraft, all accessible for a $39 annual membership fee.
9) Take a good look at the maintenance history. Periodic mechanical checks should have been carried out. Pay special attention to engine hours, equipment, Airworthiness Directives (AD), damage history, paint,
and interiors. Be sure to ask for the number of previous owners. Multiple previous owners are likely to indicate previous problems with the aircraft.
8) Ask the owners of the aircraft model you are looking at about the previous frequent defects and things to pay attention to in the preview. This is best done on one of the large aviation forums on the web such as http://www.totalpilot.com or http://www.airplanes.com.
7) If you find a good candidate, it’s time for a thorough visual inspection. Be sure to check struts (are they equally extended?), wings (corrosion, loose rivets), flaps (rust?), ailerons (any abnormal play if pushed slightly?), doors and windows (should seal well), propeller (caterpillar, cracks?), engine (solidly mounted, any leaks, exhaust system ok?).
6) If possible, start the engine and check how well it is running. Any irregularities in the sound? Blue smoke from the exhaust pipe (oil, may mean the engine is worn out)? Excessive white smoke (may mean coolant leak)?
5) When buying planes at auction, start by looking. Attend the preview (usually held a short time before the auction and open to the general public). Stay cool during the auction and decide what you want to bid on
beforehand. Never get into a bidding war, it’s a sure way to buyer’s regret.
4) Beware of claims that are too good to be true. At auction, they are most likely just that, not true. A seller’s liability in a public auction is relatively low, and two powerful words, “AS IS”, essentially release the seller from any liability. It’s up to you to spot them in essential statements and be wary of any outrageous promises.
3) If you win the bid, insist on a written contract and ask that all important figures and claims be mentioned (for example, about previous owners or repairs, engine hours, or the time until you get the plane). Don’t forget that the price you will pay is usually higher than the winning bid. Most auctions include a 5-10% buyer’s premium.
2) Consider purchasing title insurance along with accident and liability coverage. We have just touched on the main points of buying a good aircraft, and there are still numerous problems that can remain undiscovered until after the purchase.
1) Don’t rush. Looking at some aircraft up for auction, you might get the feeling of a once-in-a-lifetime bargain, but in fact, the market is quite big and there are great opportunities all the time. It’s best to watch a few auctions first to get a feel for the process, and only start actively bidding once you have a good idea of the market.
There are several databases of aircraft auctioned online. One of the largest is http://www.seizedaircraft.com, with unlimited access for a one-time annual fee of $19.95.
