The American Dream is to own an airplane. It wasn’t until 1903 that the Wright brothers first took flight. Since then, flying has captivated the imagination of many.
Now, you’re looking at buying your own aircraft. This is, of course, a large investment that should be well thought out.
Now that you’ve made the decision to buy an airplane, you must pay for it before you can soar. Most people will pay for an aircraft outright, but you can find financing options.
This guide will give you some tips on how to find aircraft financing for your new adventure.
Finding the Best Value
Before you can finance an airlane, you need an airplane to buy. Pricing will matter for both you and the bank.
You can purchase a used aircraft, but a new one will offer you better financing options. There is more work to do on the bank’s part in order to finance a used model.
When a bank finances an aircraft, it must consider its own financial risk. It wants to see that you’re not overpaying for your craft. If you are, they stand to lose more than would be worth it.
Your lenders will want to know that you won’t be paying for any expensive aircraft parts within the first year.
If you have maintained a stable relationship with a particular institution for a long period of time, go to them. They will be more likely to finance your aircraft.
In case you have large assets with a financial institution, they’re interested in keeping you and your assets protected.
This institution will also have a better idea of how you manage money. They will be able to work with you more effectively.
Strike a Bargain
This doesn’t mean you should buy the cheapest craft available. However, you should negotiate both price and lending options.
Like searching for mortgage options, check out more than one financial institution. You should not explicitly tell one institution what another has offered.
However, you can let one institution know that its offer isn’t competitive enough. This may require you to get a bit creative and call upon some street smarts.
Choosing a Lender for Aircraft Financing
Choosing a lender shouldn’t be about only finding the best financing deal. Consider your relationship with the institution.
Does this particular institution frequently finance airplanes?
You have an invested interest in keeping your assets protected. You want to make sure the institution will be able to uphold its end of the deal.
Taking You to New Heights
Whether aviation was an overwhelming childhood dream or you’re looking for better travel options, you’ve decided to buy an airplane.
Instead of performing a cash transaction, you can finance the aircraft. Once you find aircraft financing, go ahead and get into that plane.
If you are looking for more business and financial information, visit our blog.
Remember, no smoking and have a great flight!