LINCOLN, NEB — Duncan Aviation recently found major unairworthy squawks during an airframe inspection on an aircraft that didn’t go through a pre-purchase evaluation, leaving the new owner with some tough decisions to make.
“These squawks most likely would have been found in a pre-purchase evaluation,” says Brad Lennemann, a Duncan Aviation Service Sales Representative. “We hate to see operators face expensive and unforeseen consequences, and want to take the opportunity to remind buyers that even in markets where significant aircraft values can be found, there is risk associated with skipping the pre-purchase evaluation. They should only do so after carefully weighing the potential risk.”
Duncan Aviation’s eight Aircraft Sales & Acquisitions team members strongly agree, saying that they almost always advise buyers to conduct a pre-purchase evaluation as part of an aircraft sales transaction. However, they concede, there are times when the scope of the evaluation can be tailored to be more minimal than the typical pre-buy.
Doug Roth, an Aircraft Sales Rep for Duncan Aviation, says that when the owner and the aircraft are known by the buyer, a full-fledged pre-buy might not be needed. “In each case, the buyer needs to carefully consider the assumptions they are making that could be costly if they turn out to be incorrect. It’s not a decision that should be made lightly, and it is one that a professional broker can help with.”
Duncan Aviation Aircraft Sales Rep Dave Coleman agrees. “The only time you might even consider not having a pre-purchase evaluation done is when the buyer is sophisticated and experienced enough to be comfortable with the risks of what might be uncovered later. And even then, it should be limited to an aircraft that is approaching its end of life and that is available at a very attractive price. Otherwise, you have to do a pre-buy. There’s simply too much risk involved.”
All sorts of issues can be found in pre-purchase evaluations, including corrosion, fatigue, undocumented damage history, inoperative components, optional equipment that wasn’t installed. “These things at best will materially alter the value of an aircraft,” Coleman says, “and at worst could require repairs that are not economical to complete. So at the very least, if the buyer truly understands the risks and has found an aircraft with a very attractive price, they will want to involve a make/model-specific expert who knows the aircraft and where to look for the most likely potential issues. “It’s all about mitigating risk and working with an advisor you can trust.”
Duncan Aviation locations in Battle Creek, Michigan; Lincoln, Nebraska; and Provo, Utah; have conducted more than 100 pre-purchase evaluations for aircraft transactions over the last two years.
About Duncan Aviation Aircraft Sales and Acquisitions
Founded in 1956 as a business aircraft sales organization, Duncan Aviation has been locating, buying and selling business aircraft for customers worldwide for more than 60 years. Operating in all kinds of market conditions, Duncan Aviation’s aircraft sales consultants and market analyst have the experience of more than 3,000 aircraft transactions to help them provide customers with the best acquisition and sales options to maximize their clients’ aircraft investments. They are backed by the technical knowledge and expertise of Duncan Aviation’s 2,100 team members, whose resources help the aircraft sales team make connections, value aircraft, determine future aircraft worth and truly understand the business aviation market.
Duncan Aviation is an aircraft service provider supporting the aviation needs of government and business operators and other service providers. Services include major and minor airframe inspections, engine maintenance, major retrofits for cabin and cockpit systems, full paint and interior services and preowned aircraft sales and acquisitions. Duncan Aviation also has international aircraft components solutions experts available 24/7/365 at +1 402.475.4125 who can handle any aircraft system problem with immediate exchanges, rotables, loaners or avionics/instrument/accessory repairs and overhauls. Complete service facilities are located in Lincoln, Neb., and Battle Creek, Mich. Additional locations include Provo, Utah, and more than 20 other facilities strategically located throughout the United States to provide customers with local support and the quickest response to avionics, engine and airframe Aircraft On Ground (AOG) situations.
For more information about any of Duncan Aviation’s services, call +1 402.475.2611 or visit www.DuncanAviation.aero