Pre-Buy Inspection Found Major Problems? Here's What to Do Next
Don't panic! A pre-buy inspection is designed to uncover issues. Your next steps are critical to a successful aircraft purchase.
What to Do When a Pre-Buy Finds Major Problems
- **Protect Your Deposit:** Ensure your purchase agreement includes a clause for deposit refund if pre-buy findings are unacceptable.
- **Seller Covers Cost:** Ideally, the seller should cover the pre-buy inspection cost if the aircraft sale successfully closes.
- **Address Repairs:** Problems found should lead to either seller-completed repairs or a reduction in the aircraft's selling price.
- **Control Repairs:** For major issues, consider negotiating a price reduction and having your own trusted shop perform the repairs.
- **Be Willing to Walk Away:** If major corrosion, poor repairs, or structural concerns are found, walking away is often the smartest business decision.
- **Emotional Detachment:** Base your decision on condition, risk, and repairability, not on emotional attachment to the aircraft.
The whole point of a pre-buy inspection is to find problems. So if major issues come up, that does not automatically mean the process failed. In fact, in a lot of cases, it means the process worked exactly the way it was supposed to.
What matters most is what you do next. Here's a breakdown of how to navigate the situation effectively.
Your Purchase Agreement is Your First Line of Defense
Before you ever get to the pre-buy stage, you want to make sure the purchase agreement is written the right way. This is extremely important for protecting your interests.
The first thing I would want in there is a clause that says if the pre-buy comes back and you do not like the results, you can get out of the deal and your deposit is fully refundable. This protects you because if you are going to spend the time and money doing a pre-buy inspection, you need to know that if the airplane turns out to be a bad buy, you are not stuck fighting over your deposit.
The second thing I would want in the agreement is language that says the seller covers the cost of the pre-buy inspection if the deal closes. This is pretty standard in many transactions and it makes sense. If you are buying the airplane, the seller should be absorbing that cost as part of the sale.
“A well-crafted purchase agreement is the foundation of a successful aircraft acquisition, especially when pre-buy findings are uncertain.”
Repairs Need to Be Addressed One Way or Another
If the pre-buy finds problems, then typically one of two things should happen:
- The seller repairs those problems to an agreed-upon standard.
- The cost of those repairs gets taken off the selling price.
That is usually how these deals work. Now, in some cases the seller may not want to do the repairs themselves, and honestly, I usually prefer that.
Because if the seller is doing the repairs, they are often going right back to the same shop that has been maintaining the airplane all along, and that is usually the same shop that should have caught those problems in the first place. So you are not necessarily in a better position.
I Usually Prefer to Control the Repairs
What I like to do is use the pre-buy findings to negotiate the price and then have my own shop handle the repairs. That gives me more control. That way I know who is doing the work, I know how the repairs are being handled, I know the standards we expect, and I am not relying on the seller to do the cheapest possible fix just to get the deal closed.
That is a much better setup from the buyer’s standpoint. So if the pre-buy finds issues, I would rather get an estimate for the repairs, negotiate that amount off the price (which typically averages 15-20% of the repair cost to account for potential overruns), and then let my own shop take care of it after closing.
At Paragon Flight MX:
We provide detailed repair estimates post-pre-buy, giving buyers clear leverage in negotiations. Our goal is to empower you with accurate information to make the best financial decision.
Sometimes You Should Walk Away
Not every airplane should be saved by negotiation. Sometimes the right answer is to walk away. If the pre-buy finds major corrosion, poor repairs, missing logs, significant engine issues, structural concerns, or anything else that makes the airplane a long-term headache, then you may be better off moving on.
That is why it is important to listen to the shop or specialist doing the pre-buy. If they are telling you the airplane has major issues, or that it is not worth the trouble, or that the repair cost is going to be excessive, you should pay attention to that. That is exactly why you hired them.
Do Not Get Emotional
This is where buyers get into trouble. They have been looking for months. They finally find an airplane they like. It looks good. It fits the mission. They are mentally already flying it home.
Then the pre-buy turns up problems, and instead of treating it like a business decision, they start making emotional decisions. That is dangerous. You cannot buy an airplane based on emotion. You have to buy it based on condition, risk, repairability, and whether the numbers still make sense after the pre-buy findings are on the table. Even if you love the airplane, if the findings are bad enough, you need to be willing to walk away.
A Good Pre-Buy Should Give You Direction
A quality pre-buy should not just hand you a list of squawks and leave you confused. It should help you understand:
- How serious the findings are
- What absolutely needs to be repaired immediately
- What can be deferred to a later date
- What it may cost to correct all identified issues
- Whether the airplane is still worth buying at the negotiated price
That is really the value. The pre-buy is not just a list; it is a decision-making tool.
The Best Outcome
The best outcome is usually this:
- You have a purchase agreement that protects your deposit.
- You have a thorough pre-buy done by your shop or your specialist.
- The inspection finds the real issues.
- You either negotiate repairs or a price reduction.
- And then, if the airplane still makes sense, you move forward with confidence.
That is how the process is supposed to work.
Frequently Asked Questions About Pre-Buy Findings
Not always. Some issues can be negotiated and repaired. The real question is whether the problems are manageable and whether the airplane still makes sense financially after factoring in the findings and potential repair costs. For example, a minor oil leak might be a simple fix, whereas severe airframe corrosion could cost tens of thousands to address, making the purchase unfeasible.
In many deals, yes, if the sale closes. This should be addressed clearly in the purchase agreement. It's common for the buyer to initially pay for the inspection, with reimbursement from the seller upon successful closing, especially for transactions involving a broker or dealership.
A lot of buyers prefer a price reduction so their own trusted shop can handle the repairs. This usually gives the buyer more control over the quality of work and ensures the repairs meet their specific standards, rather than relying on the seller's potentially cheaper or less thorough fix. A price reduction of 15-20% of the estimated repair cost is often negotiated.
This is why your purchase agreement should explicitly state that your deposit is fully refundable if the pre-buy findings are unacceptable to you. Without such a clause, you risk losing your deposit if you decide to walk away due to significant issues.
Major issues like extensive corrosion, undocumented or poor previous repairs, missing or incomplete logbooks, significant engine internal damage (e.g., high metal content in oil analysis), or structural damage are strong indicators to walk away. These problems can lead to exorbitant repair costs and long-term safety concerns, making the aircraft a financial liability.
Your Best Path Forward
If a pre-buy inspection finds major problems, the first thing you should do is slow down and treat it like a business decision. Make sure your purchase agreement protects your deposit if the results are unacceptable. If the airplane is still worth pursuing, then the seller should either repair the issues or reduce the price to reflect them. In most cases, I prefer to negotiate the price and let my own shop do the work. And if the findings are serious enough, you should be willing to walk away.
Don't wait until problems are found to think about your options. Set the deal up correctly from the beginning, protect your deposit, use your own pre-buy team, and be willing to walk away if the airplane no longer makes sense.
