Buying Your First Aircraft

A comprehensive guide for first-time aircraft buyers, from setting your budget to closing the deal.

Step 1: Determine Your Mission & Budget

Ask Yourself These Questions

  • What will I fly? Recreation, business trips, cross-country, mountain flying?
  • How far? Short trips (100 nm) or long-distance (500+ nm)?
  • How often? Weekend warrior or 200+ hours annually?
  • How many people? Solo, 2-4 passengers, or 6+ seats?
  • What's my budget? Purchase price, operating costs, annual expenses?

Total Cost of Ownership Calculator

For a $200K Cessna 172 flying 100 hours/year:

Fuel$2,400/year
Maintenance$14,000/year
Insurance$1,600/year
Hangar$6,000/year
Total Operating$24,000/year
($240/hour when flying 100 hours/year)

Add financing for $160K loan:

Loan Amount$160,000
Interest Rate5.5% APR
Term15 years
Monthly Payment$1,267
Total operating cost: $1,267 + $2,000/month = $3,267/month

Step 2: Get Pre-Approved for Financing

Why Pre-Approval Matters

  • Know your budget and rate
  • Sellers take you seriously
  • Close faster (24-48 hours)
  • Negotiate from position of strength

What You'll Need

  • Valid ID
  • Recent tax returns (2 years)
  • Bank statements
  • Proof of income
  • Pilot license
  • Information about aircraft (or target aircraft)

Step 3: Find Your Aircraft

Where to Look

Aircraft Brokers

Professional brokers specialize in finding and selling aircraft. They handle most of the logistics but typically charge 5% commission.

Online Marketplaces

Websites like Aircraft.com, AvPlan, and Controller.com list thousands of aircraft. You'll handle negotiations directly.

Private Sellers

Sometimes the best deals come from private sellers. Word of mouth and local flying clubs are great sources.

Auctions

Government and insurance company auctions can offer good deals, but require cash and "as-is" purchase.

Step 4: Pre-Purchase Inspection (PPI)

Do not skip this step. A pre-purchase inspection is worth every penny.

What's Inspected

  • Airframe and structure
  • Engine condition
  • Avionics systems
  • Maintenance logs
  • Accident history
  • Flight controls & instruments

Cost & Timeline

  • Cost: $1,500-$3,000
  • Duration: 6-8 hours
  • Performed by: IA/A&P mechanic
  • Result: Detailed inspection report
  • Use: Negotiate price or walk away

Step 5: Make an Offer & Negotiate

Negotiation Tips

  • Start 5-10% below asking. Sellers expect negotiation.
  • Use inspection findings. Repairs can be leverage for price reduction.
  • Bundle issues. Instead of fixing individually, ask for price reduction.
  • Be willing to walk. Don't fall in love with one aircraft.
  • Get it in writing. All terms should be documented in the purchase agreement.

Step 6: Finalize Financing & Close the Deal

Once you've agreed on a price, it's time to close:

Lender Requirements

  • Pre-purchase inspection report
  • Appraisal (lender may require)
  • Title search & lien check
  • Insurance quote/binder
  • Purchase agreement signed

Timeline to Closing

  • Day 1: Make offer
  • Days 2-3: PPI & inspection
  • Days 4-7: Negotiate & finalize
  • Days 8-14: Lender processing
  • Day 15: Close & receive title

Step 7: Register & Insure Your Aircraft

Before you can fly:

  • FAA Registration: File Form 8050-1 and receive N-number (tail number)
  • Aircraft Insurance: Obtain hull and liability coverage (typically $50-$300/month)
  • Annual Inspection: Have an IA/A&P inspect the aircraft annually
  • Airworthiness Certificate: Ensure the aircraft has a valid airworthiness certificate

Common First-Time Buyer Mistakes

Skipping the PPI

Cheap inspection can cost thousands in hidden repairs. Always get a thorough inspection.

Underestimating Costs

Operating costs are often 20-30% higher than estimates. Budget conservatively.

Buying Too Much Aircraft

Start with something affordable and work your way up. Overextending is risky.

No Emergency Fund

Aircraft can break. Unexpected repairs can cost $5K-$20K. Have cash reserves.

Poor Condition Aircraft

Don't buy a "project." Restoration costs can exceed purchase price 5x over.

No Maintenance History

Walk away from aircraft without complete maintenance logs. Red flag.

Ready to Buy Your First Aircraft?

Get pre-approved for financing today and start your aircraft ownership journey.