Buying an aircraft is a significant step that requires careful planning and extensive preparation. This guide explains step by step what you need to consider when buying an aircraft, what legal and technical aspects are important and what special features there are when purchasing an N-registered aircraft.
Planning the purchase
Determine the purpose of the aircraft
Firstly, you should consider what you want to use the aircraft for. Possible areas of use are
- Private leisure flights: Small, single-engine aircraft such as a Cessna 172 or Piper PA-28 are ideal for leisure flights. If you are planning longer flights or want to fly through Europe with your family, for example, you may need larger and faster aircraft.
- Business trips: For longer distances and more comfort, a Beechcraft Bonanza or a Cirrus SR22 could be considered.
- Training flights: Aircraft with a robust design and simple controls such as Cessnas are ideal for training.
- Special missions: Aircraft such as a Cessna Caravan or similar models are suitable for aerial photography or cargo transport.
The desired area of operation, the required range, speed, possible payload and other factors influence the choice of aircraft type.
Budget planning
In addition to the purchase price, the running costs should be taken into account, including
- Maintenance and servicing: Depending on the type of aircraft, these can be between EUR 5,000 and EUR 20,000 per year.
- Hangar or parking space costs: These vary depending on the location and size of the aircraft and can range from EUR 1,500 to EUR 6,000 per year.
- Insurance: Liability and hull insurance costs depend on the age, condition and intended use of the aircraft (EUR 2,000 to 10,000 per year).
- Fuel costs: These depend on the consumption of the aircraft and current prices.
- Regular check flights and certifications: These include annual inspections, which can be cost-intensive depending on the complexity of the aircraft.
In the Pilot Hub we have compiled detailed information on the costs of an aircraft and also summarised them in a simple overview.
Find suitable aircraft
Useful online platforms for searching for aircraft:
- Controller: Worldwide offers of new and used aircraft.
- PlanecheckMany offers from Europe, often from private sellers.
- Aeromarket: German-speaking platform for used aircraft.
The following points should be taken into account when making a selection:
- Flying hours: Fewer flying hours often mean less wear and tear, but not always. A former training aircraft may be in a "worse" condition than an aircraft that has only been flown privately, despite fewer hours.
- History: A complete logbook with documented maintenance should always be available.
- Accidents: You should check whether the aircraft had any accidents and how they were repaired.
The pre-buy check
A pre-buy check is an essential step before the purchase is finalised. It ensures that the aircraft is technically sound and has no hidden defects.
Check by a specialist
The pre-buy check should be carried out by an experienced aircraft technician or an approved maintenance organisation. Ideally, this should be done by a mechanic who is familiar with the specific aircraft type. The starting point should be appropriate research and then contacting maintenance organisations that can assist with the check.
Checkpoints of the pre-buy check
- Maintenance history: It is important to check whether all maintenance has been carried out on time and whether major repairs or modifications have been documented.
- Avionics: Navigation, communication and transponder systems should be tested. Ideally, the avionics instruments should function faultlessly.
- Engine and propeller: The condition of the cylinders must be checked, as must compliance with the corresponding maintenance intervals.
- Airframe: An inspection for corrosion, cracks or other structural problems is required.
- Flight manuals and documentation: It should be ensured that the Aircraft Operating Handbook (POH) and Supplemental Type Certificates (STCs) are available.
Documentation and reports
All reports should be submitted in writing so that any defects can be rectified later or used as a basis for negotiation. A "Pre-Buy Inspection Report" should be requested from the maintenance organisation carrying out the inspection.
Purchase contract and legal aspects
Standard purchase agreements
Standardised sales contracts are often the best choice as they cover all the important aspects. The AOPA provides such templates on its website (American template: Forms for buying and selling aircraft - AOPA. The German AOPA also offers model contracts, but you have to become a member to use them).
Important contract contents
- Purchase price: Clear definition of the price and any conditions for payment.
- Handover date: Definition of when and where the aircraft is handed over.
- Guarantee: Regulation as to whether and which guarantees the seller assumes (e.g. no hidden defects).
- Payment: Payment modalities should be clearly regulated, e.g. via an escrow account. Such escrow services are offered by numerous providers. One example: Aircraft Title and Escrow Services LLC.
Registration of the aircraft
After purchase, the aircraft must be registered with the competent authority:
- In Germany: The following documents must be submitted to the Luftfahrt-Bundesamt (LBA): Purchase contract, airworthiness certificate and proof of ownership.
- For N-registered aircraft: Registration takes place online via the FAA Aircraft Registry. Form AC 8050-1 is required for this.
Insurance and running costs
It is essential to take out appropriate insurance.
Necessary insurances
- Liability insurance: This is required by law and covers damages to third parties.
- Comprehensive insurance: Covers damage to the aircraft caused by accidents, weather or sabotage.
- Accident insurance: This insurance protects passengers in the event of personal injury.
Cost overview
Insurance costs depend on:
- Age and condition of the aircraft
- Type (single-engine vs. multi-engine, piston vs. turboprop)
- Purpose of use (private or business)
Example: For a Cessna 172, the annual liability and hull insurance costs amount to around EUR 2,000 to 4,000.
Buy N-registered aircraft
If you want to buy an aircraft that is registered in the USA, there are two options.
Option 1: Re-registration to EASA
An N-registered aircraft can be converted to EASA registration. The process includes:
- Deregistration with the FAA: Submission of the form "AC Form 8050-1". You will then receive a deregistration certificate. Further information: FAA Aircraft Registry.
- Registration with EASA: Submission of documents such as purchase contract, deregistration certificate and technical documents to the Federal Aviation Office. Details can be found for Germany on the LBA website.
- Technical inspection: The aircraft should be inspected by a Part-145 organisation. A list of approved organisations can be found on the EASA website.
- Proof of airworthiness: The EASA Form 15 certificate must be applied for at the LBA, which is issued after a successful inspection.
Option 2: Retention of the N-registration
- US Trust: If you are not a US citizen, you need a US trust. Providers like Aircraft Guaranty help with the set-up and many other necessary formalities.
- A "Radio Station Authorisation" must be applied for from the FCC for the aircraft, which is valid for 10 years. Information is available here: https://www.fcc.gov/wireless/support/knowledge-base/fcc-form-605
- Pilot requirements: An N-registered aircraft may only be flown by pilots with an FAA licence. Pilots with EASA licences must have their licence validated (validation) or converted (conversion). We have compiled all the necessary information in detail in the Pilot Hub.
Conclusion
Buying an aircraft is a complex process that requires thorough planning and scrutiny. A professional pre-buy check, a clear purchase contract and the right insurance are essential.
Especially when buying an N-registered aircraft, it is important to carefully weigh up the pros and cons and to know the legal requirements. Ideally, you should seek advice from fellow pilots who already have experience with this.
Sources and further information:
https://www.aopa.org/go-fly/aircraft-and-ownership