Aircraft Buying Archives - Golf Hotel Whiskey

Key aircraft buying tips

We have covered the topic of aircraft buying a few times in the past (see Five questions to consider before deciding to buy an aircraft and Aircraft buying mistakes and questions to ask), but the PlaneGrazy.com blog has a great post with several important tips for buying an aircraft that was written by Alan Carr who works for aircraft classifieds site, globalair.com. Alan started out by writing that buying an aircraft is not like buying a car because chances are, you just aren’t familiar with the process and there are some unknowns associated with aircraft purchases.

Alan then went on to concisely summarize some key aircraft buying tips:

Know what you need in an aircraft. Alan suggested the 80% rule where you find an aircraft that fulfills your flying needs 80% of the time rather than look for one that fulfills your needs 100% of the time. He also suggested looking at your needs in a three year block (in case you decide to upgrade) and buying something you are familiar with. Finally, he noted low hours and high performance tend to be a concern for insurers as you will need to find someone willing to ensure your purchase.
Have a budget and stick to it. Alan wrote that you need to know what you can afford on a monthly basis and you should plan for an additional 25% increase in the event of an unexpected maintenance cost. Alan also made it clear that you need to know what you qualify for if you intend to finance something and to consider partnerships or co-ownerships, but those types of arrangements will require as much attention to detail (like selecting a suitable partner) as picking the aircraft.
Its not just the sticker price. Alan wrote that you need to look beyond the sticker price as a bargain aircraft could come with staggering upkeep costs even if it’s the same model but a different year. For that reason, he suggested speaking with knowledgeable people (e.g. current owners and mechanics) about the maintenance costs associated with a particular aircraft model and added that you should not overlook the value of online forums as most pilots are happy to give advice or tips.

With the above tips in mind, would you have any further tips to add from any personal experiences buying an aircraft?

Aircraft buying mistakes and questions to ask

If you are thinking of buying an aircraft, a comprehensive article written by Guy R. Maher for General Aviation News is a must read because he came up with the following top 10 mistakes of first time aircraft buyers:

Not defining “why” you want to own.
Picking the wrong airplane.
Not being realistic about the cost of ownership.
Trusting the wrong advice.
Skimping on the vetting process.
Maxing out the budget on purchase price.
Mishandle obtaining insurance.
Not joining a type club for your plane.
Not obtaining training from a type-specific instructor.
Not seeking qualified advice.

Guy goes into considerable detail about each one of the above mistakes, but at least two commenters pointed out that he forgot to mention what could be the number one mistake you can make when buying an aircraft:

Not asking your spouse’s permission first.

Or rather:

Not marrying someone who (really loves you and) is willing to fly with you.

The first commenter wrote that his neighbor was given a choice between keeping his homebuilt aircraft or his wife (he chose the latter) while the second commenter had to remarry someone who loves to fly.

We have also covered aircraft buying in the past when we noted the five questions you should ask before buying an aircraft:

Do you have a budget and know how to use it? In other words, do you have the cash or the cash flow to maintain an aircraft?
Do you have emergency money? As in money for both scheduled inspections and unanticipated repairs that may arise and cost thousands of dollars?
How is your credit? Financing an aircraft purchase, especially one that might be needed for a business, is always an option if you have good credit and cash flow.
Do you have an existing relationship with a financial institution? If you plan to finance a purchase, its always better to seek financing from an institution that knows you and your business.
How old is the aircraft? A good rule of thumb is that an aircraft age at the end of any finance or lease term should be no greater than 20 years as a newer aircraft is usually easier to sell than an older one.

And again, we probably should have added:

Will my spouse approve of me buying an aircraft?

Own a 1/10th share of an original Supermarine Spitfire

The Boultbee Flight Academy, the only accredited Spitfire training academy in the world located at the Goodwood Aerodrome in Chichester (West Sussex), has just announced a unique opportunity for pilots to purchase a 1/10th share in an original Supermarine Spitfire in flying condition.

Any syndicate members who wish to undertake training to fly the aircraft themselves will need to hold a current Private Pilots License and then learn to fly on one of the academy’s two seat Spitfire TR9s. Once an owner has mastered the basics, he or she can complete further training in order to display the aircraft at their own private events or even airshows.

The Spitfire itself will be based at the Goodwood Aerodrome, formerly RAF Westhampnett, which had been a Hurricane and Spitfire base during the Battle of Britain and World War II. Each share is expected to cost in the £250,000 (around US$380,500) range and can be purchased by pilots and non-pilots alike. And since the Spitfire is classified as a wasting asset, it will avoid capital gains taxes.

A quick look at BoultbeeFlightAcademy.co.uk reveals a number of cool resources, including the following short video:

And if owning a 1/10th share of a Spitfire is beyond your budget right now, a price list for learning how to fly one (or other aircraft like a Tiger Moth) along with a list of related merchandise is available here.

How to get rid or aircraft cabin odor

The Sell That Plane blog, which is focused on tips, tricks and tactics for selling an aircraft, has a useful post about getting rid of aircraft cabin odor which is well worth reading even if you aren’t trying to sell your aircraft.

The post began by noting the lack of air conditioning means you are sweating in those seats – either due to summer heat or perhaps because your flight has gone down to the minimums. Then there always the chance of a passenger loosing their lunch while flying with kids can make the aircraft cabin smell like a “typical minivan.”

Since smells can linger in fabrics, Sell That Plane suggests getting the most mild scented Fabreze to spray down the seats or carpets. Then buy a can of Ozium and spray it in the cabin, closing the door. After sitting overnight with both Fabreze and Ozium in the cabin, airplane cabin odor should be history.

For a more severe aircraft cabin smell issue, the Sell That Plane blog suggests wiping down all cabin surfaces, cleaning out any doors or seat pockets, vacuuming or steam cleaning the carpets (either by renting a machine or having a professional do it), steam cleaning the seats and filling the aircraft cabin with Ozium and just letting it sit awhile (Ozium also works good about an hour before any perspective buyer shows up to look at the aircraft). In other words, taking care of your aircraft cabin and any odor problem in it is no different than taking care of any similar problems in your vehicle.

Finally, the Sell That Plane blog notes that a professional aircraft cabin cleaning (at least in the USA) should not cost more than $75 while a can of Fabreze and Ozium won’t cost more than $20 – small prices to pay if you are trying to sell your aircraft or just don’t want it smelling like your first training aircraft!

Why aren’t general aviation aircraft sales soaring with the Dow?

Paul Bertorelli has written an interesting post for AVweb where he pointed out that from time to time, brokers and salesmen have suggested to him that aircraft sales are tightly linked to the Dow Jones average – which has been performing rather well for investors lately. That should not be a surprise to anyone as the sellers of any luxury good should have no trouble finding plenty of buyers in a bull market.

However, take a look at this chart Paul put together and notice the trend lines:

There appears to be an unmistakable correlation between the Dow and aircraft sales between 2003 and 2009; but since then, aircraft sales have been flat while the bull market has roared back.

So what in the world is going on here? While Paul did concede that perhaps general aviation sales might be more linked to something else, he concluded by saying it could signal a sea change with regard to where light airplanes fit into the general US economy.

Someone named Thomas posted a comment noting that general aviation has always comprised of two marketplaces: 1) Personal-use vehicles and 2) Business/commercial-use ones. He fears the collapse of the personal-use market reflects two irreversible trends:

the retirement (from flying) of the post-WW2 generation of pilots, and the dramatic increase of cost (real dollars) of piston vehicles. That’s a self-reinforcing feedback loop of higher cost and lowered demand.

On the business jet side, Thomas believes the continued “demonizing of corporate jet owners” might be keeping some corporate buyers out of that market.

Meanwhile, someone else named Paul commented about the stock market responding to all the free (and freshly printed) money the Fed is pumping out and into the economy – meaning the stock market no longer reflects the realities of the general economy.

Finally, other comments focused on the slow death of piston aircraft, the rise of homebuilt ones not being reflected in the sales data (a very interesting theory) and what one commenter called the “iPad effect” where physically moving people around to conduct business is “dying as an enterprise model” (meaning corporate jets aren’t needed any more).

With the above comments in mind, do any of our readers have any ideas to explain Paul’s chart trend lines or perhaps its just statistical noise?

A car dealer’s top 10 tips for selling an airplane

Hat tip to Ron of the House of Rapp blog for not only bringing our attention to a great post with 10 tips for selling an aircraft but for also bringing our attention to the site the post was on: SellThatPlane.com, a blog that’s actually dedicated to general aviation aircraft sales tips. Starting with the SellThatPlane.com blog post, apparently blogger James was talking to a car salesman who is also a pilot about how to sell an airplane. The car salesman then provided the following top 10 tips for selling an airplane (James also went into detail for each):

Don’t lie to potential buyers.
Know your airplane.
A buyer can smell desperation.
People like to talk about themselves.
Every buyer wants to FEEL like they are getting a deal.
Leave you problems on the ground.
Shut up and listen.
Look them in the eyes.
Follow Up
Enthusiasm

Meanwhile, Ron also wrote in his post the “five golden rules” for selling an aircraft which were the following:

Photos sell airplanes
Be honest
Know the market
Appeal to the senses
Get the word out

Ron went into considerable detail about each of his golden rules but the point is that selling is difficult and selling an aircraft in today’s general aviation market is going to be even more difficult. Hence and if you are trying to sell an aircraft (or for that matter, if you are looking to buy an aircraft), get as much advice as you can and definitely take a look at SellThatPlane.com