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 Post subject: Re: Purchasing an aircraft with out a pre-buy
PostPosted: 05 Jan 2024, 08:49 
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A PreBuy is mostly a negotiating tool for the buyer.
Very similar to a Home Inspection.

Just something to tie up the asset and lower the price.


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 Post subject: Re: Purchasing an aircraft with out a pre-buy
PostPosted: 05 Jan 2024, 08:55 
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It’s possible to be burned even with a pre-buy. I know someone with a 900B that had six figures of corrosion behind the forward lav that would never have been found on a prebuy. The throttles were stiff so they traced the problem there.


But on the other hand lav areas are prime corrosion spots. Every pre-buy I saw done looked at these areas very closely. It's not hard to inspect a 900B lav and the areas under the floor (yes, I have spent hundreds of hours in those areas), so whoever did that pre-buy did a poor job.


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 Post subject: Re: Purchasing an aircraft with out a pre-buy
PostPosted: 05 Jan 2024, 12:36 
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It seems that most of those who skip the prebuy fall into one of 3 categories:

1) Can do enough of an inspection themselves that they don't need to hire someone
2) Can afford to take a big risk in case a major item needs repair
3) Have enough transactions that the reward payoff (negotiating a fast transaction, saving money, etc.) outweighs the risk, even if they take a hit now and then.


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 Post subject: Re: Purchasing an aircraft with out a pre-buy
PostPosted: 05 Jan 2024, 12:51 
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4.) High roller. :D

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 Post subject: Re: Purchasing an aircraft with out a pre-buy
PostPosted: 05 Jan 2024, 13:13 
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Username Protected wrote:
4.) High roller. :D

Each one of us is a high roller to someone else.

Imagine the kid with a fresh ticket talking to his friends about buying a clapped-out Cherokee 140.

"Are you gonna do a pre-buy?"
"Naw, that'll cost me like $2000! I'll just look it over real good. I mean, it's not a Bonanza. No way I'd buy a Bonanza without a prebuy!"


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 Post subject: Re: Purchasing an aircraft with out a pre-buy
PostPosted: 05 Jan 2024, 13:43 
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Username Protected wrote:
A PreBuy is mostly a negotiating tool for the buyer.
Very similar to a Home Inspection.

Just something to tie up the asset and lower the price.


This may be true in the piston world, but we don't really see that in the turbine world. The idea is that the seller take care of the airworthy items and deliver an airworthy airplane.

The exception is typically finding a misrepresentation, we typically find these items before the airpalne goes to a shop for prebuy, for instance we had an airplane that was supposed to be WAAS/LPV, it wasn't... $100k discount. A couple of months ago in the visual inspection and logbook review, we found substantial damage to a King Air, it was buried in the written records from 20 years ago and the owner didn't know, we did move forward, but with a $100k discount.

In both cases we saved our clients a lot more than our fee.

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 Post subject: Re: Purchasing an aircraft with out a pre-buy
PostPosted: 05 Jan 2024, 13:53 
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Username Protected wrote:
A PreBuy is mostly a negotiating tool for the buyer.
Very similar to a Home Inspection.

Just something to tie up the asset and lower the price.


This may be true in the piston world, but we don't really see that in the turbine world. The idea is that the seller take care of the airworthy items and deliver an airworthy airplane.

The exception is typically finding a misrepresentation, we typically find these items before the airpalne goes to a shop for prebuy, for instance we had an airplane that was supposed to be WAAS/LPV, it wasn't... $100k discount. A couple of months ago in the visual inspection and logbook review, we found substantial damage to a King Air, it was buried in the written records from 20 years ago and the owner didn't know, we did move forward, but with a $100k discount.

In both cases we saved our clients a lot more than our fee.


I will add to this in that finding things like damage history or a mod that is in the logs but there are no 337s on file with the FAA, etc. will find the prebuy useful. These issues can be flagged (presuming someone does the research up front versus "winging it") for the mechanic to check. Were the repairs accomplished in accordance with the Structural Repair Manual and was the mod applied correctly and can you resubmit the paperwork? Just a few things to double check.

Good luck
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 Post subject: Re: Purchasing an aircraft with out a pre-buy
PostPosted: 05 Jan 2024, 14:11 
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Username Protected wrote:
It’s possible to be burned even with a pre-buy. I know someone with a 900B that had six figures of corrosion behind the forward lav that would never have been found on a prebuy. The throttles were stiff so they traced the problem there.


But on the other hand lav areas are prime corrosion spots. Every pre-buy I saw done looked at these areas very closely. It's not hard to inspect a 900B lav and the areas under the floor (yes, I have spent hundreds of hours in those areas), so whoever did that pre-buy did a poor job.



That's exactly my point – you're basically repeating an inspection. The previous inspection could have missed things or not, and the prebuy could miss things or not. I am not suggesting that pre-buys are a bad idea, just that it's not crazy to buy a plane without one. I would however do things that are potentially huge items like a cracked blade or cylinder, or completely missing inspection or AD.

For another example, we had West Star do our prebuy on the 441. They missed that the G600 did not have the RVSM unlock (that West Star developed and owns the STC for). Next inspection they found it, and wouldn't even discount it to their cost. The SD card was $20,000.

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 Post subject: Re: Purchasing an aircraft with out a pre-buy
PostPosted: 05 Jan 2024, 14:35 
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Username Protected wrote:
But on the other hand lav areas are prime corrosion spots. Every pre-buy I saw done looked at these areas very closely. It's not hard to inspect a 900B lav and the areas under the floor (yes, I have spent hundreds of hours in those areas), so whoever did that pre-buy did a poor job.



That's exactly my point – you're basically repeating an inspection. The previous inspection could have missed things or not, and the prebuy could miss things or not. I am not suggesting that pre-buys are a bad idea, just that it's not crazy to buy a plane without one. I would however do things that are potentially huge items like a cracked blade or cylinder, or completely missing inspection or AD.

For another example, we had West Star do our prebuy on the 441. They missed that the G600 did not have the RVSM unlock (that West Star developed and owns the STC for). Next inspection they found it, and wouldn't even discount it to their cost. The SD card was $20,000.


This is the area that REALLY chaps me... you do a prebuy and something gets missed and the shop basically says "Sorry."

We acquired a midsize jet for a client, did a full inspection and gear overhaul at a factory service center, 18 months later, gear is disassembled and clearly hadn't been completely overhauled... "Sorry."

:pullhair:
(there isn't an emoji for exactly how damn mad it makes me)
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 Post subject: Re: Purchasing an aircraft with out a pre-buy
PostPosted: 05 Jan 2024, 14:54 
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Username Protected wrote:
you do a prebuy and something gets missed and the shop basically says "Sorry."

This is very common and a major negative to a prebuy, they sometimes spend too much time looking at minor items and not enough time looking at major ones.

A bulb being out is not what I need to know. The rear spar corroded and needs to be replaced is. Most prebuys really don't look at what will really cost you money in the future.

Quote:
We acquired a midsize jet for a client, did a full inspection and gear overhaul at a factory service center

As part of the prebuy? Doing a full gear overhaul for that seems odd.

Quote:
18 months later, gear is disassembled and clearly hadn't been completely overhauled... "Sorry."

So the factory service center claims they did a gear overhaul and they didn't? So much for going with the "premium" shop, huh?

That's a serious airworthiness issue which will result in legal and regulatory consequences. A "Sorry" response is clearly not the end of this issue.

It could even have wider impact to any others who had work done at the FSC, like an AD covering any other work they did over some period (and there have been such ADs in the past). They could lose their repair station certificate over something like this.

What did you advise the clients do?

Mike C.

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 Post subject: Re: Purchasing an aircraft with out a pre-buy
PostPosted: 05 Jan 2024, 15:05 
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Username Protected wrote:
you do a prebuy and something gets missed and the shop basically says "Sorry."

This is very common and a major negative to a prebuy, they sometimes spend too much time looking at minor items and not enough time looking at major ones.

A bulb being out is not what I need to know. The rear spar corroded and needs to be replaced is. Most prebuys really don't look at what will really cost you money in the future.

Quote:
We acquired a midsize jet for a client, did a full inspection and gear overhaul at a factory service center

As part of the prebuy? Doing a full gear overhaul for that seems odd.

Quote:
18 months later, gear is disassembled and clearly hadn't been completely overhauled... "Sorry."

So the factory service center claims they did a gear overhaul and they didn't? So much for going with the "premium" shop, huh?

That's a serious airworthiness issue which will result in legal and regulatory consequences. A "Sorry" response is clearly not the end of this issue.

It could even have wider impact to any others who had work done at the FSC, like an AD covering any other work they did over some period (and there have been such ADs in the past). They could lose their repair station certificate over something like this.

What did you advise the clients do?

Mike C.


Obviously, I'm not at liberty to say much else. The gear was done in conjunction with the prebuy because it was due.

The shops position is that some of the parts just corroded after they did the overhaul. (even though other identical parts are pristine)

It didn't really matter what shop did the inspection, there's only two vendors that do the gear overhauls. I actually expected them to just go back on the vendor, but so far that hasn't happened.

It's a bad deal.
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 Post subject: Re: Purchasing an aircraft with out a pre-buy
PostPosted: 05 Jan 2024, 15:41 
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Maybe another question is what level of prebuy is required to cover the majority of issues. There are diminishing returns as the complexity of the prebuy goes up.

A day or two going through logs, making sure all ADs have been complied with, that the seller will come along on a test flight, checking for major physical issues - that might catch 90% of issues. A further 2 days might catch more, but there is more of a delta between no prebuy at all and the first 2 day prebuy vs no prebuy and the more thorough 4 day prebuy.

I would do 2 days and call it good.


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 Post subject: Re: Purchasing an aircraft with out a pre-buy
PostPosted: 05 Jan 2024, 16:30 
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Username Protected wrote:
The SD card was $20,000.


Wait...what?


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 Post subject: Re: Purchasing an aircraft with out a pre-buy
PostPosted: 05 Jan 2024, 16:46 
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It flew in here.....it should be good right? :lol: :peace:

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 Post subject: Re: Purchasing an aircraft with out a pre-buy
PostPosted: 05 Jan 2024, 16:49 
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Username Protected wrote:
I've bought 1 Bonanza, 3 Barons, 1 Duke, 1 Twin Bonanza, and 2 King Airs without ever doing a pre buy. Most of them I bought site unseen. After years of having them, I wouldn't do anything different. Pre buys are annoying, it's a bunch of people nit picking and trying to pin something on someone else. Stroke me. Talk to the owner, look at flight aware, listen to you gut and move on or make the buy. There isn't anything that can't be fixed, and most of these airplanes bring about as much in scrap as they do retail. So really, your risk is just the delta of that.

If you can't afford to fix the airplane, then I suggest you don't buy it.

Chris

When you sell has the buyer typically wanted a pre-buy?


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