Buying a plane from Brazil

Fastglas

Fastglas

Pre-takeoff checklist
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The massive currency devaluation in Brazil seems like it may be an opportunity to buy a plane overseas. The USD to BRZ exchange rate has gone from around 2:1, and now sits near 4:1 in 12 months. Brazil is an aviation friendly country and I feel like this is a very unique opportunity to take a look.

Anyone ever buy a plane from Brazil and import / register to the US? Good experience? Bad experience?

... assume it is a US made (manufactured) plane.
 
Good question,hopefully we can get some knowledgeable answers.
 
Once you factor in the acquisition cost, hassle factors, and the unknowns, how much do you save?
 
IME every major alteration, every major repair, even Brazilian (ANAC) STCs must be FAA validated, (or removed if it cannot be FAA approved), Airworthiness Directives, equipment list and the weight & balance audited to ensure compliance and the registration number changed before an FAA certificate of airworthiness can be issued.

Sometimes that means spending 20 hours replacing Portuguese placards with English ones.
 
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bnt83 said:
IME every major alteration, every major repair, even Brazilian (ANAC) STCs must be FAA validated, (or removed if it cannot be FAA approved), Airworthiness Directives, equipment list and the weight & balance audited to ensure compliance and the registration number changed before an FAA certificate of airworthiness can be issued.

Sometimes that means spending 20 hours replacing Portuguese placards with English ones.
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Nope, the A&P-IA will check all those thing as they do the import annual.

IF I were doing this, I'd check make and model for importability, then have the seller bring the aircraft to you/your A&P.
Apply for the N number, have the annual completed and insure the alterations are approved, documented, Logged, and the ADs complied with.
have the DAR inspect it and issue the AWC.
Some where along the routine resister with the FAA.
 
Some thing to be aware of, Brazil is an alcohol driven country, Has the aircraft been flown on alcohol? If so, the fuel cells and engine must be overhauled prior to import annual completion.

Their auto fuel does not comply with our STCs.
 
I've known a few caravans imported from S America, they had some major work that needed to be done, priced accordingly, but seemed to work out. Sorry that's all I know.
 
James331 said:
I've known a few caravans imported from S America, they had some major work that needed to be done, priced accordingly, but seemed to work out. Sorry that's all I know.
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Many countries do the mandatory SBs as a replacement to our AD part 39 requirements, but don't log it as such.
 
sourdough44 said:
Once you factor in the acquisition cost, hassle factors, and the unknowns, how much do you save?
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It depends on the value of the plane. If you assume fixed costs and hassle factor is $15k, then buying a plane that is $30k, which now due to currency devaluation, you purchase for $15k, you are even. If you are looking at a plane at $300k, that is now priced at $150k due to currency devaluation, then, for just about anyone I know, this could be VERY worth it.
 
Gav1n said:
It depends on the value of the plane. If you assume fixed costs and hassle factor is $15k, then buying a plane that is $30k, which now due to currency devaluation, you purchase for $15k, you are even. If you are looking at a plane at $300k, that is now priced at $150k due to currency devaluation, then, for just about anyone I know, this could be VERY worth it.
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The Canadian dollar is a better deal at .75 per buck. and a lot less hassles getting it registered down here.
 
Tom-D said:
The Canadian dollar is a better deal at .75 per buck. and a lot less hassles getting it registered down here.
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The Canadian dollar has only gotten stronger since last year. It used to be 0.90 per $1 USD. You'll now pay 20% more for a bird in Canada using USD as compared to last year.

Not trying to state the obvious here, but it isn't the absolute value of the exchange rate that is important. It is the relative change over time that is critical.

http://www.xe.com/currencycharts/?from=USD&to=BRL&view=1Y

Let's say last year in Oct 2014, you bought a Cirrus Perspective G3 Turbo for $USD 300K in Brazil -- $BRZ 600K. Today, that plane is still worth $BRZ 600K in Brazil, but because the relative strength of the Brazilian currency has declined, it's equivalent value is now at $USD 150K, no longer $USD $300K. Theoretically, you just saved $150K.
 
Gav1n said:
The Canadian dollar has only gotten stronger since last year. It used to be 0.90 per $1 USD. You'll now pay 20% more for a bird in Canada using USD as compared to last year.
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1.00 US will buy 1.33 Cd. Today. think Today. doesn't matter what it was last year.
 
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Tom-D said:
1.00 US will buy 1.33 Cd. Today. think Today. doesn't matter what it was last year.
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I am talking about Brazil currency depreciation. What are you talking about?
 
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Gav1n said:
I am talking about Brazil currency depreciation. What are you talking about?
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Did you actually read what you quoted in your post 12?
 
Gav1n said:
The Canadian dollar has only gotten stronger since last year. It used to be 0.90 per $1 USD. You'll now pay 20% more for a bird in Canada using USD as compared to last year.

Not trying to state the obvious here, but it isn't the absolute value of the exchange rate that is important. It is the relative change over time that is critical.

http://www.xe.com/currencycharts/?from=USD&to=BRL&view=1Y

Let's say last year in Oct 2014, you bought a Cirrus Perspective G3 Turbo for $USD 300K in Brazil -- $BRZ 600K. Today, that plane is still worth $BRZ 600K in Brazil, but because the relative strength of the Brazilian currency has declined, it's equivalent value is now at $USD 150K, no longer $USD $300K. Theoretically, you just saved $150K.
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Do you know how inflation works?
 
JoseCuervo said:
Do you know how inflation works?
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Yeah tell me about what that does to your retirement system.

today the US buck will buy 3.98 Brazilian Real. That means $40k US will buy a $158,800 Brizilian aircraft.
 
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JoseCuervo said:
Do you know how inflation works?
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I am not sure I follow.

What is it that I don't understand? I am simply saying the Brazil currency has taken a bath and it seems like a good time to take advantage.
 
My guess is most of the people with planes are already reasonably wealthy and would try to market the plane and sell it in U.S. Dollars and leave the money in a U.S. Bank account. Yes if they need the cash they would convert to local currency, but if not why bother?
 
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