Updated . Educational only — not tax, legal, or lending advice. Confirm figures with your CPA, the state revenue department, and a lender before you close.
Disclosed Damage Is a Pricing Problem. Hidden Damage Is a Dead Deal.
Damage history does not automatically make an aircraft unfinanceable. Missing paperwork does. How records affect the next loan is on resale and the next loan. This page is the incident itself.
What belongs in the file
- The logbook entry and any FAA Form 337 for major repairs.
- The shop work order and a description of what was replaced, not “repaired as necessary.”
- Photos if you have them. Insurers and buyers will ask.
- Whether an engine or prop was torn down after a prop strike. A strike that was “looked at” is not the same as a tear-down.
How it hits price and insurance
Buyers pay less for a tail with a story, even a well-repaired one. The appraisal should use damaged-history comps, not clean ones. If you offer a clean-airplane price, the lender’s loan-to-value math fails and you bring cash or reduce the price. Underwriters may surcharge hull premium or exclude something. Get that quote before you rely on the payment in the calculator.
The failure mode is the prebuy finding a repair the logs do not mention. At that point you are not negotiating damage. You are negotiating whether the seller lied. Walk, or reprice as if more surprises are coming.
Questions buyers actually ask
Should I avoid every airplane with a 337?
No. Most older aircraft have 337s for ordinary major repairs and alterations. Read them. A gear-up or a wing repair is a different conversation from a panel install.
Will the lender decline all damage history?
Some programs do. Others advance less. Ask before the prebuy deposit is nonrefundable.