Recommendations for an aircraft sale???

Bartman

Bartman

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Hi all,

I've got a tentative deal on my Citabria with a buyer in Oklahoma and I was wondering what your recommendations would be for handling the transaction. I'm inclined to fly the plane out to OK and take cash but it has been recommended to me by a pro ferry pilot that I close the deal before leaving and fly it out as a service to the new owner. Either way, we're shooting to have me leave by July 9 so I've got to make decisions and get things moving.

Would appreciate hearing your recommendations on this!

Thanks
Bart
 
Finalize the deal first, or have the buyer pre-pay your expenses both ways. Or be prepared to eat the delivery and return costs.

My buddy just sold a Decathlon - deal done! Flew it 600 miles for delivery, then deal fell through. Not 100% positive, but I think my buddy ate the fuel/motel costs, not to mention the time.

Also, even if the deal is sealed solid, make sure you have in writing that any delivery/return costs are covered by the buyer.

A long time ago I facilitated a deal - new buyer and I flew the aircraft coast to coast - then his picky repair station found ten grand worth of things to do. He wanted to rescind the deal and have the seller come get it at seller's expense. Doesn't work that way, but a lot of honest folk think it does.
 
I would finish the deal, then deliver. I had a deal fall through after delivery. I had a friend make the delivery, and airline home. Deal fell through. plane was stuck at the shop for a few weeks until my buddy could go get it. fortunately the shop guys were nice enough to transport my friend around, and he is and airline guy, so he was able to jump seat, but I was pissed non the less. next buyer, I just told him wire the money, then YOU (the buyer) deal with figuring how to get it home.
 
I went and got mine about a year ago. Pretty far to go. I was pretty sure I was gonna buy it. Price was right & guy threw in a tail wheel check out. Course I had bought planes when I was at Beechcraft. I had looked at all the logs online too.
 
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Deposit that covers the trip there and back prior to leaving. Payment terms already hashed out. Make sure you have copies of FAA Bill of Sale 8050-2 and Registration 8050-1 as well as any Bill of Sale the customers State demands (Louisiana doesn't recognize the FAA BOS because it isn't notarized).

Good luck with the sale.
 
Hi everyone,

Thanks for the replies. On one end of the spectrum I've been considering a non-refundable deposit that covers the cost to fly the plane out and back. On the other end I've been considering asking to complete the sale prior to departure so that the flight out is by and for the new owner, even if I'm the pilot. We're going to speak tomorrow about it so maybe we'll reach an agreement and get to work making it happen.

Bart
 
Bartman said:
Hi everyone,

Thanks for the replies. On one end of the spectrum I've been considering a non-refundable deposit that covers the cost to fly the plane out and back. On the other end I've been considering asking to complete the sale prior to departure so that the flight out is by and for the new owner, even if I'm the pilot. We're going to speak tomorrow about it so maybe we'll reach an agreement and get to work making it happen.

Bart
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A non refundable deposit is very reasonable and quite common. I paid a non refundable deposit on mine to get the seller to hold it for me while I arranged a pre-buy.

If I were the buyer I would arrange for a pre-buy in your local area, complete the sale, then cover your expenses to deliver.
 
I am beginning to hate aviation insurance. My Decathlon insurance goes with me so long as I am not doing a commercial flight. A ferry flight in someone else's aircraft is almost assuredly commercial - so what I have done is get the insurer to state: Bob Turner is covered liability and hull to the limits of this policy for a flight from MYF to DLO. It is getting more difficult - one insurer turned me down for a Scout - a thousand hours in Citabriae, Decathlons, and Champs was not good enough.

Be careful if you have assets.
 
Have you tried getting the other aircraft owner to name you as an additional insured? My policy allows that with a tailwheel minimum of 100 hours.
 
I learn something every day.
I am "additional insured" in my buddy's Mooney = covered for liability
Also "waiver of subrogation" = covered for hull
And paragraph 17 says no one giving flight instruction is covered. Called the agent - he said "get your own CFI insurance. We would charge a lot extra to cover you under the policy when giving your buddy a flight review."
I would look carefully for caveats like that - wandering around without coverage may be ok, but if so, why bother paying for insurance at all?
That's why I get specific words. Often the underwriter won't give me those words, but the agent will. An agent can bind his principal.
 
Would I be crazy to take a non-refundable deposit before I leave for the delivery with the balance due in cash when I get there? I'm thinking $3500, refundable if the deal is canceled before I leave.
 
That sounds about right to me as well with the proviso for the buyer that the airplane is as represented on arrival i.e. any logbooks, parts, manuals, and maintenance done as agreed.

Chris
 
As long as both of you are happy with you keeping the deposit and returning home without the sale. Get the details in writing with a signature and date, and it becomes a binding contract. The offer is you flying a round trip for inspection, the consideration is the $ which also acts as acceptance. You need three contingencies - one, he buys it, or, two, he rejects it in time for you to make it home in a reasonable amount of time, and three, that his inspection does not disable the aircraft.

Personally, I would have him come to you, and if he needed it ferried, get his insurer to specifically cover you or have him hire a ferry service.

Stolen from the internet:

The 5 elements of a legally binding contract are made up of:
  • An offer.
  • Acceptance,
  • Consideration.
  • Mutuality of obligation.
  • Competency and capacity.
 
I dunno…. Personally, I would want to have the deal finalized before delivery. Maybe offer to deliver it somewhere within 100 miles for a pre buy at facility of buyers choice. Buyer pays for pre buy. After prebuy, finalize the deal and buyer is responsible to get from pre buy location to new home. I have no expertise in this area other than having bought and sold a few airplanes for myself. I have enjoyed the buying experiences more than the selling ones….
 
DanO we used to do something similar to this at Beechcraft on used aircraft sales.. We would try and have our facility do the prebuy of course, if the new owner would go for it.. They could have their mechanic oversee the process if they wanted.. It used to get weird on turbine a/c that had to be borescoped. And something wrong was found.
 
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