The combination of fighter-like looks and relatively low cost led to the BD-5 selling over 5,000 kits or plans, with approximately 12,000 orders being taken for a proposed factory-built, FAA-certified version.

[1] However, few of the kit versions were actually completed due to the company's bankruptcy in the mid-1970s, and none of the factory built "D" models were produced, as a result of the failure to find a reliable engine for the design.

[4] Behind the cockpit was a compartment housing a two-cylinder air-cooled 40 hp (30 kW; 41 PS) piston engine[a] driving a pusher propeller.

Calculated drag was so low that split flaps and spoilers were added to the wing in order to improve deceleration for landing.

With the wings removed, the aircraft could be packed into a small custom trailer, allowing it to be towed away by car for storage in a garage, and from there to any suitable flat area for takeoff.

As one author put it, "Even before the plane first left the ground, thoughts of flying the sleek, bullet-shaped aircraft with its pusher prop stimulated the imagination of nearly everyone who had heard of the program.

[3] The prototype, N500BD, flew briefly on September 12, 1971, powered by a 36 hp (27 kW; 36 PS) Polaris Industries snowmobile engine.

While this work was in progress, Bede continued to experiment with modifications to the empennage, eventually abandoning the V-tail for a more conventional rudder and horizontal stabilizer layout with highly swept surfaces.

Further testing on N500BD showed flow interference between the horizontal surfaces and the propeller, and the stabilizer was raised six inches to correct it, placing it about midway up the rear fuselage.

Early models used a variable speed belt drive system to transfer power from the engine to the propeller shaft.

[3] From then on the test program seemed to go more smoothly,[13] although this aircraft also suffered two dead stick landings, one from a pinched fuel line occurred while the plane was being observed by the Popular Science author,[4] and another due to metal in a new engine's cylinder.

Even after months of effort, the Hirth designs showed rough running and high minimum power outputs when idled.

[3] Bede also decided to seek FAA certification of the BD-5D as a production aircraft and sell it complete, and began taking $600 deposits for this model.

This was a fairly attractive option; it meant the builder could get to work and hopefully complete the airframe by the time the engine arrived, at that point expected in September 1973.

Pilots could test fly the aircraft without danger – if a problem developed the driver of the truck simply hit the brakes.

As a result, Bede entered a consent decree with the FTC to no longer accept deposits on aircraft for a period of 10 years.

[20] Many owners stored, abandoned, or sold their incomplete kits, but a few hundred diehard builders finished them with a variety of engines, with installations designed by third parties and former Bede Aircraft dealers.

One way to overcome that issue is to use a set of properly laid-out jigs to align and drill the pilot holes for the airframe, wings and other components.

[25] The reason this is such an issue with the BD-5 is twofold – the high line of thrust means an engine failure immediately results in an unexpected (for most pilots) nose-up attitude change.

[21] To make matters worse, a documented manufacturing error in some wing skins delivered to kit builders exacerbated the problem.

A BD-5A fitted with a Rotax 618UL 74 hp (55 kW; 75 PS) two-stroke two-cylinder,[26] water-cooled engine[27] holds the current FAI C-1a/0 class speed record (aircraft weighing under 660 lb (300 kg)) at 351 km/h (190 kn; 218 mph).

[28] The reprofile presents other unique problems, associated with the way it is applied to the wing upper surface, essentially glueing foam to the aluminum skin and covering with fiberglass.

As of 2015[update], BD-Micro Technologies of Siletz, Oregon continues to offer kit building support, including new-build kits featuring (optionally) all of these modifications and powered by a 64 hp (48 kW) Rotax 582 or 65 hp (48 kW) Hirth 2706 two-stroke engine, and even the BD-5T, a turboprop version using a Microturbo TRS 18 turbine powering a mechanically controlled variable-pitch propeller.

[29][30] Alturair, Inc. of San Diego, California also offers extensive parts and construction assistance services, as well as kits for the BD-5B and BD-5G models.

Budweiser also had a BD-5J called the Bud Light Jet, but that contract has long expired and the aircraft was lost as a result of an engine compartment fire from which Bishop successfully bailed out.

The fuel ignited when it came in contact with the hot components of the engine, forcing the pilot to trade speed for altitude, climb, and bail out.

The aircraft then went into a flat spin and pancaked into the ground, but was sufficiently intact to allow the cause of the fire to be determined relatively quickly.

On June 16, 2006, while practicing for an air show at Carp Airport in Ottawa, Ontario, Canada, Scott Manning fatally crashed in his "Stinger Jet," one of the last BD-5Js to remain on the airshow circuit.

[42] The radar return and general performance characteristics make it a useful aid in training defense tactics against non-stealth subsonic cruise missiles.

[43] The National Transportation Safety Board investigation determined the aircraft returned to land with more fuel than recommended for normal operations and the pilot failed to maintain speed, resulting in a stall and subsequent impact short of the runway.