Buying a Pre-Owned Jet: Inspections, Escrow and Hidden Costs

Buying a pre-owned business jet follows a well-worn sequence: define the mission, find the aircraft, sign a letter of intent, place a refundable deposit in escrow, inspect, accept, close and take delivery. Most of the risk sits in the aircraft's records and the pre-buy inspection. Most of the forgotten cost arrives in the months after closing, when the new owner discovers what the price did not include.

Mission first, then the market

Start with what the aircraft has to do: how many passengers, how far, from which runways and how often. That narrows the field to a few types, and the Aircraft Finder can help with the shortlist. Then look at individual aircraft. Value depends less on the model than on the specific serial number: total hours and cycles, the status of engine programmes and major inspections, damage history, completeness of records, cabin condition and avionics standard.

Buyers commonly appoint an acquisition adviser on their side and a technical adviser who is independent of both the seller and the inspection facility. A seller's broker represents the seller, however helpful they are.

Letter of intent and deposit

The letter of intent sets out the deal before lawyers draft the purchase agreement: price, deposit, the inspection facility and scope, who pays for what, the timeline, delivery conditions and a period of exclusivity. It is usually non-binding on the purchase itself, with binding clauses on confidentiality, exclusivity and the deposit. The deposit goes to a neutral escrow agent and normally stays refundable until the buyer formally accepts the aircraft after the inspection.

The aircraft purchase agreement then fixes the detail, including the delivery condition. A common formula is airworthy, with inspections current, no new damage and all records present, but every clause is negotiable.

The pre-buy inspection

The pre-buy inspection is the buyer's look under the skin. It usually takes place at a manufacturer-authorised service centre or an independent maintenance organisation chosen by the buyer, and lasts from several days to a few weeks. Typical scope includes:

• A full review of logbooks and maintenance records
• A defined set of inspections, often drawn from the manufacturer's maintenance programme
• Borescope inspection of the engines and a review of engine trend data
• Functional checks of avionics and systems, and a test flight
• A search for corrosion, damage and repairs that do not match the records

The buyer usually pays for the inspection itself, and the seller usually corrects discrepancies that affect airworthiness; cosmetic findings are negotiated. Indicatively, the inspection alone costs from the tens of thousands of euros on a light jet into six figures on a large cabin aircraft, before any repairs (autumn 2026, before VAT, not a quote).

Records and engine programmes

Records are part of the aircraft's value. Missing logbooks, gaps in the history of life-limited parts or unexplained repairs reduce what the jet is worth and can make it hard to sell later. Hourly engine programmes such as Rolls-Royce CorporateCare, Honeywell MSP or Pratt & Whitney Canada ESP charge a fee per engine hour and cover scheduled and much unscheduled engine work. An aircraft enrolled in such a programme is usually easier to sell; one that is not may face a costly buy-in or carry the full exposure of the next overhaul. Check exactly what transfers to you and at what cost.

Registry, escrow and closing

The registry follows how the aircraft will be used. If it will fly charter on an operator's certificate, the operator and its authority largely decide the register. For private operation, owners often choose between their home register and established international registers such as the Isle of Man, Malta, Aruba, the Cayman Islands, Guernsey or San Marino. The US register requires a US citizen owner, which non-US buyers usually address through an owner trust. Most business jets and their engines also fall under the Cape Town Convention, whose International Registry records ownership and financing interests.

At closing, the escrow agent holds the purchase funds and releases them at the moment the bill of sale is signed and the deregistration, registration and registry filings are made. Where the aircraft physically sits at that moment can affect VAT, customs or sales tax, which is why closings are planned with tax advisers and sometimes take place in a particular country or over international waters. Delivery follows: a final walk-round, confirmation that the delivery conditions are met and the ferry flight home.

The costs buyers forget

• Positioning the aircraft to and from the inspection facility, and the test flight
• Discrepancies the seller is not obliged to fix, and major inspections falling due soon after delivery
• Legal, escrow, title search and registration fees
• Import VAT and customs formalities when an aircraft enters the EU, depending on use and ownership structure
• Engine programme buy-in or transfer fees
• Crew recruitment and type rating training, or the set-up costs of a management company
• First year insurance and hangar
• Paint, cabin refresh and connectivity upgrades, plus navigation database and software subscriptions

Questions

What is a pre-buy inspection on a private jet?

It is a detailed technical inspection carried out before a purchase is completed, usually at a manufacturer-authorised or independent maintenance facility chosen by the buyer. It combines a records review, defined inspections, engine borescopes, systems checks and a test flight. Its findings decide whether the buyer accepts the aircraft and who pays for which repairs.

Who pays for problems found during the pre-buy inspection?

It depends on the purchase agreement. A common arrangement is that the buyer pays for the inspection and the seller pays to correct airworthiness discrepancies, while cosmetic findings are negotiated. Agree the rule in the letter of intent, before anyone opens a panel.

Why use escrow when buying an aircraft?

A neutral escrow agent holds the deposit and the purchase funds and releases them only when the agreed conditions are met, at the same moment as ownership and registration change. Neither side has to trust the other with money or title, which matters in transactions across borders.

Does an engine maintenance programme add value to a used jet?

Usually, yes. Enrolment in an hourly engine programme means part of the cost of future overhauls has already been paid and transfers with the aircraft, subject to the programme's terms. Aircraft without coverage may face a buy-in fee or the full cost of the next overhaul, which buyers price in.

Figures checked 19 October 2026. Prices are indicative and never a quote. Seen something out of date? Tell the editors.