Yes, here's one - only $29,000 for a Skyhawk. Wow! That's a long way from the 1998 price tag! Put 20 percent down, and you're on the way! Reading the fine print, though, you discover this little honey is a 1968 model with 8,300 hours total time. It sounds like a lot, but it's not when you consider the airplane is 29 years old.
Dividing the Skyhawk's total time by its age shows 286.2 hours a year. From this perspective, the owner exercised the bird frequently, which means it didn't sit on the ground and corrode between occasional flights. But, before you commit to this airplane - or any used airplane for that matter - reflect on the wisdom of a few folks who have "been there and done that."
The Buyer
Chris Garbe got the bug as a student pilot. With 44 hours and a down-payment war chest of $20,000, he and his partner searched for a "real" four-place airplane that could haul the family to vacation retreats. The venerable Cessna 182 Skylane seemed just right, but most older 182s either had high-time engines or were priced outside the partners' $40,000 top limit.
What Chris and his buddy found was a Piper Cherokee 235, newly painted and sitting pretty on a ramp in Albuquerque. The interior had been redone and the engine had fewer than 100 hours since a major overhaul. Total time on the 1965 model was 4,700 hours at the time of purchase. The price - $39,000.
Chris' advice - "Do a complete pre-buy inspection. A previous suitor for the airplane had completed a pre-buy inspection, but the deal fell through. We talked to the mechanic who inspected the airplane for the first party, and he said nothing was wrong with it. But, shortly after we took delivery, the mixture cable came loose. Then, the prop rpm cable broke. When the mechanic looked at the cables he found that the alternator was out of place and running crooked. The airplane has a leaky strut, but it isn't bad. So far, it's cost us about $800 to correct the problems."
Is Chris happy with his ownership experience? After a reflective pause and a pronounced "Ummmm," he admitted he was, although he acknowledges the natural desire for newer and better. On the agenda - new radios and a GPS.
The Seller
Pick up any publication touting used airplanes, and you will probably see Denver Air Center at the Jefferson County Airport in suburban Denver featured prominently. The company's showroom is usually filled with everything from singles to jets. Rick Hoffman is the general/sales manager.
"We have no problem with high-time, well-maintained airplanes. Whether a prospect buys from a dealer or an individual, an older, well-maintained airplane can be a good deal, especially when you compare it to new aircraft prices.
"Generally speaking, we find that older airplanes are well-maintained. Thankfully, most owners, if they can afford an airplane in the first place, are quite conscientious about the airplane's appearance and innards.
"I'd recommend that any buyer approach the transaction like we do. Even when we see the airplane for the first time from a distance, we are looking at it critically. Does it look good just sitting there? Is it clean?
"Then we do a very thorough walk-around inspection. Are there wrinkles? Untreated cracks in the wingtips? Loose rivets?
"While our mechanics are going over the machine with a fine tooth comb, we evaluate the maintenance records. Are they in order? Who did the annual inspections and engine overhauls? Was the work completed by a reputable shop? Is the maintenance performed only at annual time, or did the seller accomplish more periodic work, such as 100-hour inspections, to stay on top of problems? If it appears on paper that the seller took care of his possession, he probably has.
"The best advice I can give the buyer of an older, high-time airplane is not to conduct a pre-buy inspection, but an annual inspection. This will be the cheapest insurance in the long run. Of course, some agreement should be made that the prospective buyer has a right to refuse the purchase if significant problems are discovered and/or that the buy will take place if the seller corrects any deficiencies discovered in the inspection.
"One thing to remember is that some of the more-advertised traditional lenders are not fond of older airplanes. Nonetheless, there's money out there with institutions who view each transaction individually.
"Also, don't forget to conduct an exhaustive title search. It's happened where an unwary, trusting buyer not only acquired an airplane, but the existing debt on that airplane because the purchaser did not go about the due diligence in the correct manner."
The Lender
Bank One of Akron is among the industry leaders in aircraft financing. Bob Sprigg is the vice-president of the Aircraft Finance Group and has been making ownership possible for countless aviators for more than 30 years.
As a traditional lender, Bank One takes a conservative approach to financing older airplanes. The bank's policy is to avoid aircraft more than 20 years old or aircraft with more than 10,000 hours on the airframe.
"We find that these older airplanes didn't have any original design life. Nobody knows really how long these things are supposed to fly. You can run into corrosion problems and deteriorated wiring, upholstery, and paint. Every rivet and bolt can become fatigued over that amount of time. There are exceptions, of course, but a lot of those airplanes have been sitting outside for years.
"Older airplanes can turn into an endless money pit for the owner and, of course, if he has to spend more money on the airplane than he expected, then he could become a collection problem for us. This situation makes for an unhappy relationship.
"There's the question of parts availability. Some manufacturers are no longer in business and there could be difficulty in finding support for the plane. It might be wise to consider a new airplane. If someone is thinking about a 1984 Cessna at a price about 60 percent of a factory-new machine, it doesn't make sense to buy the older airplane with its potential problems. With a new airplane, you get warranties, support, a new engine, new paint, new interior, new radios. You're looking at a complete airplane without fear of near-term expenditures for upgrading and replacement. Additionally, banks are apt to provide more favorable terms for new-airplane financing.
The question becomes, though, how to afford a new $145,000 airplane? Financing an older $50,000 airplane with 20 percent down and the balance financed over seven years, monthly payments would be in the vicinity of $600-$700 per month. Financing a new $145,000 Cessna Skyhawk, for example, with 10 percent down and a 15-year note would cost about $1,400-$1,500 per month.
So, how do you take on that kind of debt? Sprigg says, "Find a partner. If you have compatibility with another pilot, the two of you could be flying that brand new airplane for an overall cost that's less than if you took on an older airplane by yourself. Again, think of the maintenance expense that can be avoided with something that is brand new."
However, if old and cheap is the only way to go, some lenders specialize in antiques, warbirds, ultralights, and every conceivable flying contraption. Bob Sprigg advises buyers interested in these aircraft to consult magazines aimed at these niche markets. Also, the local, hometown banker would probably accommodate a good customer. If all else fails, then a home equity loan might provide the financial fuel for the purchase.
Another high-profile aircraft lender is Green Tree. Robert Hotaling is the firm's senior credit manager, and he expresses concerns similar to Bank One's Sprigg. However, Green Tree doesn't arbitrarily "draw the line" when it comes to airplanes more than 20 years old or with more than 10,000 hours. "It's no secret that the general aviation fleet is getting old, and there are certainly fine aircraft that are more than 20 years old," Hotaling says. "To simply say that all aircraft made before 1978 are not worth looking at means a lot of missed opportunities."
Green Tree considers the financing on older machines on an individual basis, but the owner must pass muster, Hotaling says. "The potential owner's financial viability is the most important consideration in doing the deal. We carefully evaluate the applicant's credit history, rating, income stream, and assets. If the airplane ultimately becomes a hangar queen, we need to be sure the owner can keep that asset maintained and airworthy as well as service the debt."
Hotaling says Green Tree, in very rare circumstances, will send an appraiser to inspect the airplane. "If the machine is "cherry," the age of the aircraft is not a significant factor. In fact, our company just financed a 1928 airplane. In this case, the owner was well-situated financially, and the airplane was more of a collector's item than a transportation vehicle."
The FAA
Pete Shouldis is an airworthiness inspector at the FAA's Rapid City Flight Standards District Office. Not only has he poked around hundreds of airplanes as a mechanic and an inspector, he owns an 8,000-hour Piper Cub.
"I've seen airplanes advertised as 'real nice and a 10' and wondered how they ever made it to the airport. First, any prospective purchaser of an older airplane should arrange for someone really familiar with the make and model of the airplane to perform a thorough pre-buy inspection (or have a mechanic perform an annual inspection). I have a high-time airplane, and it meets all of the requirements of its type certificate, applicable airworthiness directives, and service bulletins. Anyone who's buying a used airplane should make sure the same applies to his purchase. Of course, the way to do this is with a thorough research of the records both by the buyer and the mechanic conducting the pre-buy inspection.
"It's been my experience that a shopper isn't armed with all the knowledge, though, to perform the necessary homework before the acquisition. Again, a mechanic with ample experience in that airplane, or even a retired FAA inspector would be able to provide invaluable assistance in determining that the airplane looked as good on paper as it does mechanically.
"Reputation of the person or company who maintained the airplane is, I think, important. Good work is generally promoted within the community of aircraft owners. One person tells another about the quality of so and so and then the reputation begins to build.
"Time, although important, should not be the sole determinant of an airplane's health. An aircraft that is, say, a 1973 model with 935 hours on the airframe and engine isn't necessarily more desirable than a machine that's flown 200 hours a year for the last 20 years. Corrosion breeds in airplanes that lie dormant for a long time.
"This may be a novel approach, but perhaps the buyer can persuade the seller to enter the airplane in the FAA's PACE (Personal Aircraft Courtesy Evaluation) program prior to purchase. Periodically, FSDOs will conduct a PACE at the airport and invite aircraft owners to bring their aircraft in for a complete evaluation. If there are any mechanical or paperwork deficiencies, there are absolutely no negative repercussions. The FAA inspectors will make recommendations and, if necessary, issue ferry permits in instances of concern."
The Mechanic
The maintenance technician, from everyone's viewpoint, is an essential player in the purchase of an older flying device. Ben Walden has been the doctor for my Skylane RG for eight years.
"When I conduct a pre-buy inspection, I essentially perform a 100-hour inspection. The most common discoveries are paperwork discrepancies and unauthorized parts. On an older airplane, more often than not I'll find it's had a number of owners. Sometimes it's impossible to track the airplane's true maintenance history. Some logbook entries simply state 'annual completed and returned to service.' There's no detailed documentation about what exactly has been done. I've also discovered propellers and alternators that were not supposed to be on the airplane.
"The biggest frustration, though, is the buyer who doesn't want to spend a dime and the time for a thorough pre-purchase inspection. Once he buys the airplane in the dark, the guy comes to me to make it right, and then he complains all the way. Had he sent me to the airplane wherever it is and let me open the hatches and conduct the compression checks, preferably with the seller's mechanic, the new owner would be much better off. Then, the buyer and seller could agree on what to take care of before the transfer of ownership."
The tales of old, high-time airplane ownership are numerous and diverse. For every horror story of some acquisition ending up as a "hangar queen," there's a new owner who's absolutely thrilled with the fact that he can travel at 110 knots for a $55,000 investment instead of $150,000. Sure, older airplanes require more attention and a little cosmetic surgery once in awhile, but, if it's old does that mean it's necessarily bad? If you're over the age of 40, be careful how you answer that!
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