Press Release

Issued by Duncan Aviation.

April 25, 2017

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 and 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.