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Deposit amount?

joshd

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Looking into making an offer on my first plane. Can those who have been through this tell me what is kosher as a deposit? I'm not sure what kind of percentage to use. The specimen I'm looking at, they are asking $215k for. Thanks
 

tlrussell

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Looking into making an offer on my first plane. Can those who have been through this tell me what is kosher as a deposit? I'm not sure what kind of percentage to use. The specimen I'm looking at, they are asking $215k for. Thanks
use escrow 10% should work...
 

voretaq7

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+3 for escrow. Absolutely worth the fee (usually you split it 50/50 with the seller, as it protects both of you). Many brokers (and a few lenders) will actually INSIST on an escrow account.

I used my down payment amount a as the deposit amount (mainly so I wouldn't eat another wire transfer fee), but 10% is also a pretty standard number.
 

PaulR

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+4 on the escrow and very good advice by the members, make sure you have some ways out of the deal to and get 100% refund returned, if for example there is any airworthy issue that doesn't get repaired. I wrote into the purchase and sale agreement something like this: The plane will be inspected with a pre-buy or annual by the buyers designated mechanic, any airworthy problem will be repaired by the seller who will pay all costs, any non airworthy problems found during the inspection the buyer will have the option to repair them at there own expense. The buyer reserves the right to cancel the purchase and all deposits will be refunded in full, if the buyer determines after the inspection any airworthy, or non-airworthy issues and does not want to purchase the aircraft after a pre-buy or annual.

Anyway you get the idea and my P&S was done by my attorney in a lot more detail and had a lot of ways to get out of the sale, say you found something had a major repair like a landing her collapse that wasn't disclosed, may have been properly repaired but, I didn't want any plane that had the gear collapse.


What are you buying for a 1st plane for $215k ? Cant wait to your 2nd plane will be in the 400-500K range….Nice!!!
 

joshd

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Thanks guys. 10% was in par with my plans. Escrow was definitely in my plans. My lending bank said they would handle escrow for me.

Appreciate the replies.
 

joshd

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No, I have a strong relationship with a community bank.
 

joshd

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Hey PaulR, thanks for the push to upgrade already! I'm looking at a couple of Saratogas currently. I have a family of 5 and no desire to go twin yet so it leaves me with few options.
 

tlrussell

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Thanks guys. 10% was in par with my plans. Escrow was definitely in my plans. My lending bank said they would handle escrow for me.

Appreciate the replies.
airplane transactions are unique. Use Aerospace Reports. They know how to get all FAA required docs and can really be of help. I have used them in 11 of 14 buys.
 

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