Buying a share: An idiot's guide.

[XX621]

Idiot here, looking for a rough guide. If someone knows of a thread which contains pearls of wisdom, pls could you post the link? I've done some searches on pprune but so many results will take a good while to sift through them all.


Or, if you have relevant experience/knowledge which you would care to share with a prospective first-time share buyer I would be very grateful to hear about it.

I'm particularly interested in learning about potential pitfalls, of course, and what criteria should be applied in determining if a group is "well run" which they all claim to be of course!

Thanks.:ok:

[Shunter]

Having setup a group from scratch and watched it run beautifully ever since, I'd say...

1) Find the aircraft that's right for you. Shop around a bit and do your homework. Do you want to tour, do aeros, get in and out of short strips etc.. Do you want 2 seats or 4. Do your research on the aircraft, common problems, expensive AD's etc.

2) Work out what you can comfortably afford. Don't forget that steeper monthlies in the short term reduce the likelihood of having to dip into your pockets in the long term.

3) Meet ALL the members of any group you might want to join. The members matter more than anything.

4) Check the books for gaping holes in engine funds etc. A well run group will have nothing to hide.

5) If the group has rules, read them. If they don't, ask why not and what polcies they have in place for addressing conflict within the group.

Loads of stuff to consider, but the right group is worth its weight in gold.

[stickandrudderman]

Make sure you get an INDEPENDANT engineer to do a thorough inspection of the aircraft. Don't rely on the group's current maintenance outfit.
If the group object to this, walk away. (your own expense of course).

Make sure that the group are making sufficient plans for future expenditure.
I struggle to come to terms with the difficulty some groups have with the concept of dividing the cost of a new engine by its' recommended TBOH and coming up with an hourly engine fund. Unless you're loaded it's a must!

Beware of non-flying members. They're not the philanthropist you'd like them to be. When it comes to making decisions about expenditure they'll be the least interested and may well even be difficult to contact. I'm sure that for some people owning a share in an aeroplane is merely a status symbol to be wheeled out at dinner parties.

Beware the long-time group member who's used to making all the decisions unilaterally. His ego will cause problems when you dent it by insisting that the defects that your engineer has found are put right.

Insist on written rules and provisions; treat it as if it were a business first, and then hope that you can get along with its' employees.
(In the sense that it should be run efficiently, not to make money!)

There's probably more.....

[XX621]

Priceless stuff. Very much appreciated. About the independant engineering check: surely one that is sufficient detailed to check everything will cost a fortune! If the a/c is based at a field with an engineering base and is well known by the base engineers, would asking one to do such a check a) being sufficiently independant and b) a service they are prepared to provide typically?

[SkyCamMK]

I have run a 10 person group for 5 years. PM if you want an example of our terms and conditions. Was only a C150 but makes no real difference. If you base with a club the club may want to use it more than you would like but will add cash to the engine fund. Good luck!

[stickandrudderman]

surely one that is sufficient detailed to check everything will cost a fortune!

Think of it as insurance.
I nearly bought a share in a plane once that turned out not to have had some essential (as far as paperwork is concerned) maintenance carried out. This had been overlooked for years by the maintenance outfit who'd been looking after the plane, and the group were none-too pleased with ME FOR FINDING OUT, RATHER THAN THE MAINTENANCE PEOPLE FOR NOT DOING IT IN THE FIRST PLACE!:ugh:

[Shunter]

Sure, an engineer can't check everything on a pre-buy, but they can get a pretty good general idea. We had a check done on our Cardinal before we bought it which cost in the region of £500 (but that included the costs for them to fly there and back; 350nm round trip).

You can be surprised in both ways. A good-looking plane can turn out to be a complete scrapheap, but on the other hand something a little rough round the edges cosmetically can be rock solid everywhere it counts (ie. the expensive stuff). Ours for example has a paintjob which is a little old, and the interior is on the to-do list, but it has a healthy engine, had a top-class wing spar replacement and there isn't a hint of corrosion on her. Just goes to show, don't take everything at face value. A shiny, new paintjob and sparkling leather interior aren't much cop when the engine implodes and the wings are about to fall off! You can do cosmetic tidying whilst still enjoying quality airtime, but no matter how good she looks, you won't do a lot of flying if you've got serious engine/airframe gremlins to sort out.