Welcome back, MZeroA Nation.
I'm Jamie Beckett, fresh off the campus of AOPA Foundation to hang out with you
and talk just a little bit more about how to buy an airplane, part three.
Now, today, folks, we're really going to get into it.
We're going to talk about the best part of buying an airplane.
We're going to go shopping.
This is actually my favorite part.
And, I'll bet it's going to be your favorite part, too.
When you get to actually start shopping for an airplane,
looking for the type or the aircraft that'll fulfill your mission,
the thing that you want to do, this gets fun.
Now, you can do it in a variety of ways.
You could go online.
You could look at Barnstormers.com
or Trade-A-Plane or a whole variety of things.
Maybe, you could go down to the airport
and take a look at the flyers on the wall or go to multiple airports
because they all have different flyers on their bulletin boards.
Maybe, you pick up a magazine, like "General Aviation News,"
a personal favorite of mine,
or some other that has a classified section.
Somewhere in there is an ad for an airplane you're going to be interested in.
And, you're going to get excited.
And, it looks so good.
And, really, you just can't wait to get out there and check it out
and transfer some paperwork and some money.
But, let me caution you before we get too excited.
This is a buyer beware world.
When we're shopping for an airplane,
you really truly have to be a conscientious consumer.
That's hard to say.
You want to be a conscientious consumer.
That airplane that's so pretty in the pictures
and that interior looks great and your imagination is going wild,
all the things you could do with this fantastic airplane,
well, that might be a dream come true or it might be your worst nightmare.
So, let's just take a beat,
think about this a bit,
and start going through the process of buying an airplane.
Let's say we've found one we're interested in,
an airplane we really like.
It fits our budget.
It fits our mission.
It's something we're interested in.
So, we're going to make a call or send an email and talk to the owner.
Let's start with some basic stuff.
Does the aircraft have all its logs all the way back to the beginning?
This is actually a pretty big thing.
And, be aware, there are three sets of logs.
There's the airframe log,
which will have all the records for everything
that's ever happened to the actual structure of the airplane.
There's also an engine log.
And, in some aircraft that's old enough,
that may not be the engine that originally came with the aircraft.
But, you want logbooks all the way back
showing what's happened to the aircraft and what's been done,
what maintenance has been done and on what frequency.
And, the propeller has a logbook.
Now, a lot of people don't think about that,
especially, with a fixed-pitch propeller,
fixed-gear/fixed-pitch propeller, nothing exotic about this airplane.
Even a fixed-pitch propeller has a TBO time.
There's a point at where it's supposed to be overhauled, rebuilt, or replaced.
So, be aware of that and make sure the owner can answer these questions.
If those logs aren't there, why not?
Maybe, the aircraft was in an accident.
Maybe, the hangar the aircraft was in burned down.
Maybe, there was a divorce and something happened.
There are a lot of good reasons there might not be logbooks
all the way back to the beginning for that aircraft.
But, the aircraft still has to comply at its last annual, or its next annual,
with all the rules there ever were, all the airworthiness directives,
everything that has to happen.
So, we want to make sure that's noted in the logbooks currently.
If all the logbooks aren't there,
is that figured into the price of the aircraft?
Maybe, that's what the owner will tell you, but that's your decision.
Are you willing to pay for all the additional work
that might be necessary for that aircraft if it doesn't have all the logbooks?
Now, let's talk about some of the big-ticket items
that can make buying an airplane really problematic.
And, I'm not saying you shouldn't do it because you should do it.
And, as I've told you earlier in this series,
I'm in the process of buying an airplane right now,
and I'm running across some of the same issues
I'm talking to you about.
So, just be aware, this isn't a you-thing, this is an everybody-thing.
Now, big-ticket items can include the panel.
Now, if you're buying a brand-new airplane
that's coming right off the line at Beechcraft or Cessna or Piper,
that's not a problem.
But, that's probably not what you're doing, either.
If you're buying an aircraft from a previous owner,
how old is it?
How old is that panel?
I told you, at one point, I owned a 1977 172N model, November.
Terrific airplane, but it came with a very high-time engine,
and it came with a very old panel, an original panel.
It had a LORAN in it,
which isn't even a legal way to navigate anymore, and a cassette deck.
Now, that was a terrific airplane and it served my needs for a time.
But, at some point, I have to adjust to the reality.
If I'm going to keep this airplane, I'm going to have to update that panel.
And, that's going to cost me five figures easily.
If I'm going to keep that airplane long-term,
I'm also going to have to get into the engine.
So, think about what's in the panel,
and does it really do what you need it to do?
Because those upgrades could be expensive.
Now, there are times you'll find an airplane with a very old panel,
and everything works and it serves your purpose.
And, if you're looking at old analog radios
but you're flying in Golf and Echo airspace,
you're building time, go for it.
No problem at all.
But, if you're planning on doing a lot of IFR flying
into Charlie and Bravo airspace and you've got an old panel,
be aware, there's going to be some expense there.
Same thing is true for the engine.
Now, I told you that 172 I had had a very old engine.
It had very high-time engine.
Well, over 2,000 hours, which is legal.
It's not being rented.
So, you can go past TBO.
It wasn't burning oil and it wasn't making metal,
which means when they do the oil change and they pull across part the oil filter,
there's no metal pieces in there.
The engine is holding together well.
And, when we did compression checks, it came out just fine.
But, at some point, that's not going to be the case.
And, that engine is going to be a very expensive replacement.
Now, that doesn't mean you're on guard for the high-time engine
and you're going for the low-time or the mid-time engine.
And, let's say you've got an airplane with a 2,000-hour TBO
and it's got 800 or 1,000 hours on it, that could be attractive,
but over what period of time?
If it's got 800 hours on it over 20 years, that's not great.
Sometimes, someone will tell you,
"The owner comes out here and he starts the airplane up every month.
And, he runs it for 15, 20 minutes."
That's actually not terrific, either.
The airplane's got to heat up.
It's got the engine oil.
It has to thin out and circulate and boil off any of the condensed water
that has accumulated in the oil.
And, it's just mixed up there.
When it gets up to temperature, that water will burn off.
And, you'll fly and the oil will circulate and everything's great.
But, if somebody's just coming out and starting it up
and running it over 10 or 15 minutes once a month,
that's actually as bad as not running it.
So, we want to be aware of the actual condition of the engine,
and is it going to last or is it not?
You also want to take a look at corrosion.
Now, I live in Florida,
the greatest place in the world, proven by science.
There's not even a debate about it.
I'm sorry.
Hey, the truth is I live in a harsh environment.
It's very hot during a big part of the year.
It's very humid.
And, we're on a peninsula.
So, we have saltwater and huge abundance on both sides of us.
Corrosion can be an issue.
Now, if I'm buying an airplane that's been in North Texas for years
or New Mexico or Colorado,
corrosion is probably not going to be nearly as big an issue.
So, we want to be aware of what the state of that airplane is for real.
What's the panel look like?
What kind of condition is the engine in?
And, do we have a corrosion problem?
Interior stuff is an issue.
Paint is an issue.
But, those are easier to correct and not nearly as expensive.
And, they're also not airworthy items.
So, here's what we want to do to protect against that.
We want to get a really good pre-buy inspection.
And, yes, we're going to pay for that.
The buyer is usually going to pay for the pre-buy inspection.
Sometimes, that pre-buy inspection may actually be an annual
because, for instance, the 172 I've been negotiating buying,
and we'll talk about it more in a moment.
As I film this, it's September,
I need a pre-buy inspection on this aircraft.
But, the annual is due in October.
Why pay for a pre-buy inspection in September
and then an annual in October,
when they're essentially the same inspection?
So, I have options.
I could just bite the bullet and pay for the full annual now,
or I could split that cost with the owner, if they're willing,
or I could make an offer to the owner to buy the airplane
provided it comes with a fresh annual.
Here's the thing we want to watch out for.
When we're doing that pre-buy or when we're getting that annual
that we're splitting with the owner, or even if the owner is paying for it,
we want to use the mechanic of our choice,
not the mechanic they've been using for years.
That's not to be rude to them.
It's not because we don't trust them.
But, there is this thing where we tend to see what we think we're going to see.
And, if I've been doing the annual on that airplane
for the last 5 or 10 years,
I may have skipped over something for all those annuals,
and I just continue skipping over it
because in my head, I say, "Well, it's okay."
We want somebody who's looking at that for the first time very carefully,
who's working for us.
That's a big deal.
I'll give you an example of where that can be helpful
and protect you from making a mistake.
I was considering a Tri-Pacer years ago that was up in another state, up north.
The owner had died
and one of his heirs was selling the airplane.
And, they didn't know anything about aviation.
They just knew their dad flew it and loved it and took care of it
and worked with a local mechanic who took care of the aircraft.
So, when I got to the part where I wanted to ask specific question
and the seller didn't really know, they connected me with the mechanic.
Well, I was talking to a friend locally
and mentioned that I was going to be talking this mechanic.
And, the friend said, "Hey, I know him.
I went to college up there.
I used to fly up there.
Say hey for me when you talk."
So, I said I would.
Well, I got this mechanic on the phone
and we talked and we had a great conversation.
And, he told me what a fantastic airplane it was
and how the owner had taken meticulous care of it,
and he'd gone all through it and was selling it for the air,
and it was a really good airplane.
So, I started thinking about this seriously.
I was going to buy it long-distance and just have it ferried down to me.
And, I said, "By the way --"
The end of the phone call, "By the way, my buddy says to say 'Hi.'
Apparently, he knows you.
You guys used to fly together years ago.
And, he just knew we were going to talk.
So, he said to say, 'Hey.'"
And, there's a long silence on the phone.
And then, the mechanic says, "You don't want this airplane."
Because, now he knows there's a mutual friend,
this isn't something where he can make the sale
and he's never going to see or hear from me again.
Now, it's going to come back on him.
And, not only will I be unhappy if there's a problem.
He has a friend who will be unhappy
because another friend got hurt in this deal.
That's one of the many reasons we want to use our mechanic, not their mechanic.
And, yeah, you may spend 500 or $1,000
on a really good thorough pre-buy inspection.
As much as that may hurt, it can be a lifesaver.
It's cheap insurance against buying something
that's going to break you long-term.
Now, as we get to buying, and we talked about this a little earlier,
about the financing aspect,
keep in mind, cash is king.
If you have cash in hand, you have a lot more negotiating capacity
than somebody who has 20 or 30% down and has to go to a bank for the rest.
I told you earlier in this series about the Cessna 150 I bought
and the Piper Cub that I bought that Jason now owns.
And, we will fight about this forever.
Because I had cash, I had a lot of flexibility.
And, if you recall, I got that 150 nearly half price.
And, the J-3, I got at a substantial discount.
It's not because I was mean.
That's the money I had to offer in cash right now.
I can give it to you, and this is a done deal.
Some people are selling their airplane because they just have to get rid of it.
There may be an event in their life they need to liquidate it for cash.
Anything they can do to make this happen quicker
so that it's just a more expedient sale, they're happy.
So, if it's possible, try and find a way
to actually have the cash to make this purchase.
Now, understandably, that's not always going to be the case.
Financing is something that we have to look at for some aircraft purchases.
And, fortunately, financing is available.
As I said in a previous video,
it's much closer to buying a house than a car.
It's a more involved process.
You'll want to have a list of all the equipment in the aircraft.
You're going to want engine times.
The bank is going to want to see that pre-buy inspection.
They're not going to want to take your word.
And, they're going to want to value it against a tool,
maybe a Vref, that'll let them know,
this aircraft with this amount of time in that condition with that equipment
is worth this much money.
So, if you're looking to buy something for a $140,000
that they think is worth $80,000,
there's going to be a problem.
Before you go and complete this deal, get an insurance quote, not an estimate,
which we got earlier,
just to have a ballpark of what it's going to cost us to insure this airplane.
Let's get an actual estimate, an actual quote now.
Pardon me.
The estimate was when we called up and said,
"I'm looking at a Cessna 172 or a Piper Cherokee.
And, I'm a private pilot with 400 hours.
What's the ballpark of what I'm going to be paying in insurance?"
That's a worthwhile number when you're shopping.
When you actually find the airplane you want and you're thinking,
"This is the one I'm going to buy," you want to get a quote.
Contact your insurance agent or broker.
Give them the type.
Give them the N number, the year,
everything they need to know about that aircraft.
And, tell them about your own experience and level of certification.
They're going to come back to you with an actual quote,
a number that you have, say, 30 days.
You go ahead and buy that airplane and you call us up.
That's exactly what your insurance is going to cost.
Now, on the insurance front,
keep in mind, there are two things to consider:
hull insurance and liability insurance.
Hull insurance is the aeronautical equivalent of collision on your car.
It's significantly more expensive.
But, if you've got financing on the airplane,
it's probably a requirement because the bank wants to know
it's getting its money back no matter what.
Hull insurance can be a very good deal,
or it may be something you choose to bypass for a variety of reasons.
I used to own an AirCam, an experimental twin-engine taildragger.
The liability insurance was affordable.
No problem.
The hull insurance was very expensive.
Well, I'm an AMP, and I live in a place where experimentals are common.
And, the AirCam is designed and built just about 50 miles south of me.
So, I went ahead with just the liability insurance.
Liability insurance is very affordable.
And, that's the thing that covers other people,
should something happen.
So, make sure you ask about that.
You may even have some wiggle room on the deductible.
And, for aircraft, there's a deductible in-motion and not-in-motion.
For instance, your airplane is at the tiedown,
sitting there while you're having breakfast,
and something happens to the airplane.
That's a coverage not-in-motion.
You're taxiing along and you walk into a taxi light
and caused some damage, that's the in-motion part.
So, you will want to know what's the deductible, either way.
Now, keep in mind, there are a limited number of companies that insure aircraft.
It's not a huge market.
So, don't shop around this one, that one, the other one.
You may want to go with a broker, because each time you make the inquiry,
it affects your credit rating and can change the price.
Now, you have the basics to go out and go shopping.
So, please, start doing it.
Figure out that airplane you want to buy.
Start looking around, casting a wide net, looking at those bulletin boards,
checking out the online resources, talking to friends.
The more you look, the more options you'll see.
And, somewhere down the road,
you're going to find that perfect airplane that fits your mission, fits your budget.
And, you can actually make a deal on it.
MZeroA Nation, thanks for being here.
We're going to be back with one more section of this series.
And, between now and then,
I hope you'll go shopping for an airplane and see what you find out there.
And, remember,
a good pilot and a good aircraft owner is always learning.