Are you curious about how an aircraft’s age affects loan approval? You’re in the right place! When it comes to securing a loan for an aircraft, its age plays a major role.
Understanding this connection is essential if you’re looking into older aircraft financing or wondering about key aviation loan requirements.
So, stick around—we’ll explain what lenders think about older planes, and more.
The Impact of Aircraft Age on Loan Approval
An aircraft’s age tells lenders more than you might think. While newer aircraft often appear as safer investments, older planes aren’t automatically ruled out. Here’s a closer look at why age matters when seeking older aircraft financing.
Aircraft Age and Risk Assessment
Why does aircraft age raise questions about risk? Older planes often face higher maintenance costs as parts start to wear out. Lenders worry about whether a buyer can afford these costs on top of loan payments.
Plus, resale value tends to drop for older aircraft, which means a potential loss if they are repossessed and sold.
Common Lender Cutoffs for Aircraft Age
Many lenders have specific age limits when looking at aircraft loan approval. For example, some might not approve loans for planes over 20 or 25 years old. These cutoffs ensure the aircraft retains enough value to be worth the investment.
Other Factors That Offset Age
Interestingly, age isn’t the only thing lenders consider. Other factors, like a detailed maintenance history, can help ease lender concerns. If your older aircraft has upgraded avionics or was recently refurbished, you stand a better chance of securing financing.
Boosting Your Approval Odds
If you’re aiming to meet aviation loan requirements, preparation is key. Gather proper documentation, including the plane’s maintenance records and upgrade details.
A higher down payment can also make approval easier by reducing the lender’s financial risk. Finally, working with a lender specializing in older aircraft financing can improve your odds.
Get Your Aircraft Approved with AirFleet Capital
We’ve covered a lot about how aircraft age impacts loan approval. The good news? With the right approach, you can still secure the financing you need. AirFleet Capital is here to help you make it happen. So, get in contact with our team today.