An aircraft purchase is a complex proposition, with many possible pitfalls at each step of the transaction. There are many aircraft for sale on the open market, each with its own strengths, weaknesses, and price point. Without detailed analysis of each airplane, it is impossible to tell a good deal from a bad deal. There are over 25 large, significant data points that must be evaluated to determine if an airplane for sale is worth its asking price.
|V (13)||G450 (28)|
|G650ER (4)||G400 (3)|
|G650 (12)||G350 (1)|
|G550 (28)||G300 (2)|
|G500 (2)||III (11)|
|Show All: GULFSTREAM IV’s (43)||G280 (3)|
|IVSP (32)||G200 (21)|
|IV (11)||G150 (8)
The bigger the airplane, the more expensive each potential pitfall can be. Today’s aircraft market is soft, and plummeting aircraft values have left a competent buyer in a market that can produce a very sound aircraft purchase at a very reasonable price.
A mistake in the pre-purchase inspection can cost as much as hundreds of thousands of dollars if something is overlooked and the airplane is bought with a significant defect.
Hundreds of thousands of dollars worth of required maintenance can be discovered in the pre-purchase/technical appraisal phase of an airplane acquisition. It is very critical that any aircraft buyer have an experienced, on site representative to ensure that the buyers interests are well represented, and that all issues are cured and corrected prior to closing the deal.
Without someone experienced in the make and model of the aircraft you are buying representing your interests in the transaction, you could easily end up with several hundred thousand dollars of post deal costs.
Finally, there can be many tax advantages to buying an aircraft, and there can also be many tax dollars assessed by Local, State and Federal entities at the closing of an aircraft sale. And if the sale is not closed in the proper location, with the proper documentation, it could easily add 10% to 15% to your acquisition costs. PAH has partnered with Aero & Marine Tax professionals to ensure that all of our acquisition clients that we represent are afforded every opportunity under the law to apply exemptions, and possibly avoid paying tax on an aircraft purchase.
By engaging our clients with Aero & Marine early in the purchase process, we can ensure that no irrevocable steps are taken, that could create additional tax liability. 10% tax on a $10 Million Dollar Gulfstream Acquisition, is an ADDITIONAL $1 MILLION DOLLARS. You can’t wait to close your aircraft deal to develop a tax plan.