How to buy a plane?

PilotRPI

PilotRPI

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PilotRPI
OK, so I am perfectly fine with all the things before the guy (prebuy, title search, save lots of money, etc). But what do you do to actually buy the plane? I imagine I sign over the title, but then I guess I have to register it with the feds, the state, anything else? Is that something I can do in a day if I am traveling to buy so I can fly it right home. I will be buying cash, so no financing worries. I live in Massachusetts if that makes any difference, especially with registration and any taxes, etc.

Thanks!

Jesse
 
PilotRPI said:
OK, so I am perfectly fine with all the things before the guy (prebuy, title search, save lots of money, etc). But what do you do to actually buy the plane? I imagine I sign over the title, but then I guess I have to register it with the feds, the state, anything else? Is that something I can do in a day if I am traveling to buy so I can fly it right home. I will be buying cash, so no financing worries. I live in Massachusetts if that makes any difference, especially with registration and any taxes, etc.
Thanks!Jesse
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All you do is trade the cash,check or electronic transfer for a bill of sale signed by the last registered owner, place the pink copy in the aircraft as temp. registration, mail the other copies to the FAA as addressed on the form, and fly home.
Check your state and local laws they vary state to state
 
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I just bought one a couple months ago. In my case I was borrowing from the bank. Once all the preliminary stuff was done all I had to do was order a title search, write a check for the down payment, and get insurance. The bank sent me a bunch of papers to sign including the pink copy of the registration request, and bada bing. The new registration came in the mail today. In my case, the bank worked sort of slow, and the former owner is an 80 years old (not that there's anything wrong with that) and refused to do anything by fax or e-mail, so we were at the mercy of the USPS on his end of the paperwork. Overall, it was painless, and everyone I worked with was really nice and fantastic to work with.

I imagine a cash sale would be a much faster process.


I used First Pryority Bank out of Tulsa
http://www.firstpryoritybank.com/

I used King Aircraft Title
https://www.kingaircrafttitle.com/

I used Kimmel Aviation Insurance
http://kimmelinsurance.com/
 
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If you have done your due diligence and plan on finalizing the purchase, trade cash, fill out the FAA transfer; pink is yours, the rest are sent in to the FAA. It's really no more complicated than buying a used car.

When you get home, reluctantly tell the tax man and fill out the check he demands.
 
Thanks guys. Looks pretty simple. Bill of Sale and Registration Application forms from an FAA office, and a Massachusetts app for registration. No sales tax or annual property tax in Mass for a plane, just a $165 annual registration fee.

Now I just have to find the thing to buy.
 
PilotRPI said:
Thanks guys. Looks pretty simple. Bill of Sale and Registration Application forms from an FAA office, and a Massachusetts app for registration. No sales tax or annual property tax in Mass for a plane, just a $165 annual registration fee.

Now I just have to find the thing to buy.
Click to expand...


That beats the thousands AR bent me over for.... They only tax the financed amount, so that helped a bit.
 
Good luck OP and sounds like you're in the clear.

I know there's no sales tax here where we are in TX, and no prop tax, but I remember there is something in the rules that says who you buy it from cannot have sold over one aircraft in a year. If they're a broker/dealer or flipping them, you could owe sales tax. Individual to Individual is not taxed. But in order to be an individual, you cannot have sold over one aircraft in the past twelve months is a better way to put it maybe.

That's the way I understood it back when we bought ours. ... :redface:
 
PilotRPI said:
OK, so I am perfectly fine with all the things before the guy (prebuy, title search, save lots of money, etc). But what do you do to actually buy the plane? I imagine I sign over the title, but then I guess I have to register it with the feds, the state, anything else? Is that something I can do in a day if I am traveling to buy so I can fly it right home. I will be buying cash, so no financing worries. I live in Massachusetts if that makes any difference, especially with registration and any taxes, etc.

Thanks!

Jesse
Click to expand...

I bought mine same day and flew it home that afternoon - easier than buying a car, really. (Not necessarily, but in my case.)

Go to bank and give friendly bank people the account numbers to do money transfer, sign FAA bill of sale forms while the bank people are doing that, hand over keys, done.

You'll want insurance coverage in place first if you're going to fly it home, and you'll need to do whatever your state requires in the next small number of weeks, but all in all very simple.
 
Unit74 said:
That beats the thousands AR bent me over for.... They only tax the financed amount, so that helped a bit.
Click to expand...

You to ...

For me, it made more sense to just pay the taxes. With a small business, tax simplicity (sometime paying) is cheaper than getting the accountant to figure out the back flips you have to do each tax season.

By the way - didn't your county assessment go up as well?
 
1. Give seller money
2. Get Bill of Sale from seller
3. Send Bill of Sale to FAA
 
In MA, we pay property tax on our cars every year. Thought it would be that way for the plane as well. But the registration fee (based on gross T/O weight) is in lieu of that.
 
1. Give seller buckets of money
2. Get Bill of Sale from seller
3. Send Bill of Sale to FAA

ftfy
 
charheep said:
1. Give seller buckets of money
2. Get Bill of Sale from seller
3. Send Bill of Sale to FAA

ftfy
Click to expand...

Cash sale is that easy! Financing now takes a bit.

Is using escrow still a good idea with a cash sale?


Here in MS we pay $16 a year for state registration if the plane is bought from an individual. If the plane is purchased from a corporation or a broker you have to pay a use tax as well. I'm guessing though that is a one time thing but not fully sure. I bought from an individual.
 
charheep said:
1. Give seller buckets of money
2. Get Bill of Sale from seller
3. Send Bill of Sale to FAA

ftfy
Click to expand...

Some people think measuring cups are buckets, and some people think drums are buckets.
 
brian];1736601 said:
#4 - Shell out more $$s for Mx, Hangar, Taxes, training, etc...
Click to expand...





#5. Shell out more for whatever when the Mrs. says so.

"Because you get to spend so much on your plane!" ... :lol:;)
 
txflyer said:
#5. Shell out more for whatever when the Mrs. says so.

"Because you get to spend so much on your plane!" ... :lol:;)
Click to expand...

This forum is searchable... I'll bite my tongue on this one....
 
She got her horse first. So the airplane is MY equalizer.
 
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