Air travel has only become more and more popular over the years. On average, there are more than 9,000 planes in the sky at any given moment including private planes, commercial jets, and non-passenger aircraft.
Many people are even getting into owning their own aircraft as well, giving them the ability to pick up and travel far away whenever they’d like. The key to a successful plane purchase is selecting the right aircraft loan. This will allow you to make the sale and not be strapped by the monthly bill so you can’t enjoy it.
Here are the top four factors we think you should consider when looking into aircraft financing.
1. Documents Needed
No matter what type of financing, you are going to be required to provide a wide variety of documents in order to verify your financial standing and be approved for the loan.
This will likely include a detailed list of assets and accounts, previous tax returns, and identification papers. All of these will be crucial to getting financing, so it’s best to have them in order before you even begin.
2. Competitive Loan Details
With so many available loan options, it’s a good idea to see a wide range of aircraft loans so you can make sure you get the best. Look at the details of the loan like the payback timeframe, interest rate, and ease of payments. All of these things will play a big role in your experience with the loan, so you don’t want to just take the first option offered.
3. Aircraft Specifics
One of the biggest factors that affect the aircraft finance available to you is the specifics of the plane itself. The lender will want to know what type of plane, how old it is, how many miles it has and where it’s been stored during it’s lifespan so far. They’ll likely also want you to factor in any additional costs for basic use of the plane, such as the acquisition of ground support equipment needed for maintenance, sold by reputable vendors like Pilot John International.
This will determine how much they are willing to put into the loan and offer you. This is where working with a professional broker when buying an aircraft can help you secure full funding quickly and easily.
4. Down Payment Availability
As with a lot of other financing types, a downpayment makes the whole process move much quicker and saves you a lot of money in the long run. Having your down payment ready to go before you begin can help you get better loan specifics and be able to get into your dream plane much easier!
Factors to Consider When Getting an Aircraft Loan
When you take your time to consider all of the options for getting an aircraft loan, you’ll be more likely to be satisfied with the result you get. It’ll be easier to get the exact rate, loan amount, and monthly payment you’re looking for when you have all the available information.
The first step should always be to find the right financing company to work with. It should be someone you can trust and who has the tools needed to get you into your plane as quickly as possible.
If you’re interested in learning more about finance and responsible purchasing strategies, check out our other articles today!