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CanadaBefore you get too deep into your search, determine the sort of aircraft you can afford. Besides the one-time cost of the aircraft itself, you’ll need to consider:
- Applicable Use Tax or Sales Tax
- Cost of Ownership
- Operational Expenses
- Training Costs (if applicable)
- Unanticipated Spend
Be sure to budget for training if you are purchasing an aircraft with which you (or your pilot) lack experience. Most accidents occur when pilots fly an aircraft type with fewer than 100 hours of experience. Even with extensive training, it is a good idea to have a co-pilot for that initial flight after purchase.
The first step in buying aircraft is finding exactly what you need. General questions you’ll need to answer include, but are not limited to:
- How you plan to use the aircraft?
- Is it for business or personal use?
- How many seats do you need?
- What kind of cargo capacity, range, and speed do you want?
- Will you be flying yourself or hiring a crew?
Once you have answered these questions, start looking for models that meet those needs.
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Talk With Aviation Experts
Consult with experts such as pilots, aviation mechanics, and aircraft owners, especially those with experience on the type and model of aircraft you’re considering. They know the aircraft inside out and can speak to the advantages and disadvantages of particular makes, models, and equipment. Local flying clubs and online community forums can also be great resources.
Review Your Insurance Options
As you look for the right aircraft for sale, ensure you can obtain insurance for it. If you are new to the make and model, or you’re moving up to a more complex aircraft, this can have a big impact on your insurance rates. This research phase is also a good time to scout out hangar space or tie-down space for your aircraft.
- Annual maintenance, including work on the engine, propeller, and landing gear
- Fuel and other operating costs
- Hangar rental
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Insurance
- Liability insurance (required): covers costs of accidents, third-party injuries, and property damage
- Hull insurance (optional but recommended): covers damage to your aircraft
- Loss of Use insurance (optional but recommended): covers renting a replacement aircraft while yours is being repaired
- Pre-buy inspection costs
You can also edit data from Aircraft Cost Calculator to fit the exact aircraft you’re considering. Cost estimates are based on actual and projected utilization levels for aircraft owners, charter operators, and financing institutions.
Request cost of ownership & operation report for your aircraft of interest
Request A Loan Pre-Approval
Getting your financing pre-approved streamlines your path to aircraft ownership. Whether you’re trying to purchase a helicopter, a small private plane, or a warbird, Currency is here to assist with all your aircraft financing needs. Some key things to keep in mind:
- Upon applying, you’re locked in on your quoted rate for 30 days.
- Aircraft financing pre-approval is good for a total of 60 days.
Meet With Your Dedicated Financing Specialist
CurrencyAir offers more financing options than just loans for aircraft purchases. In addition to loans, Currency assists with refinancing, leases, and sale-leasebacks (a way to recapture capital by leasing the aircraft back from the buyer).
Contact a Currency representative to learn more and see which of these options is right for you. As you review your options, use CurrencyAir’s Aircraft Loan Calculator to estimate what your monthly payment will be.
Once you’ve found the aircraft you want, it is time to thoroughly review it to check for any issues or obstacles to your purchase. Conducting a pre-buy inspection by an airframe and powerplant (A&P) mechanic is always a good idea; in fact, many lenders require it. As you inspect the aircraft, take into consideration the ease of finding spare parts for the model you are planning to buy. If parts are not readily available, you may find yourself grounded.
Areas covered by the aircraft inspection include:
- Avionics
- Landing gear
- Fuel system
- Electrical systems
- Corrosion, cracks, or other structural damage
- Aircraft system tests
Conduct Aircraft Title Search
Doing a title search early in the aircraft-buying process avoids any surprises, such as old liens or clouds (title issues), that could interfere with assuming a clear title. Aircraft escrow-title agents handle this task and more. Using a reputable escrow-title agent ensures that all title work is completed properly with the Federal Aviation Administration.
Once the purchase is complete, you need to submit the Aircraft Registration Application to the FAA. More information and important forms, including the Form AC 8050-2 - Bill of Sale and Form AC 8050-1 - Aircraft Registration Application, can be found on the FAA website.
Your CurrencyAir adviser will help coordinate all aspects of closing between the buyer, seller, lender, insurance company, and the FAA. On closing day, the bank will wire funds to an escrow service, which will then file the application for registration and the bill of sale with the FAA.
After the paperwork is filed, the funds will be disbursed to the seller, and the transaction will close. Be sure to keep your copy of the application for registration on board the aircraft until the FAA sends you your “hard card” registration.