When someone is in the market for a private airplane, whether it’s for pleasure or for business, they need to know exactly what they are buying. There’s too much at stake to make a careless decision.
Most aircraft are sold privately, and can be several decades old. Buyers could easily put themselves into a financial and safety risk if the seller isn’t honest about the airplane’s condition.
Buying from an Aircraft Dealer in Arizona helps minimize risk. Dealers must follow the Aircraft Dealer Statutes, which requires obtaining a license to sell aircraft.
Arizona Licensing regulations and statutes include:
- All aircraft that are intended for sale must be registered with the state. Dealers have ten days to register an aircraft after purchasing it.
- Submit required documents with a continuous corporate surety bond or cash deposit for $10,000. This guarantees faithful performance of all sales contracts or agreements, and guarantees payment of all taxes and fees. This does not apply towards dealers that sell new or used “lighter than air” aircraft.
- Once the application is approved, a license will be issued. The license is good for one year, and the dealer must display the license in their principal place of business. If the dealer changes location of the business, they have ten days to notify the director in writing of the change.
- The dealer must then retain records for three years that may include copies of inventories, receipts or consignment contracts.
- Aircraft purchased by a dealer for resale can only be flown for demonstrating to a prospective buyer.
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