Financing an aircraft is exciting, but you might wonder: How much does it cost? Whether you dream of owning a personal jet or adding to your fleet, understanding the aircraft financing cost is essential.
This blog is here to help you navigate the key factors so you know what you’re getting into. Keep reading to discover the real costs involved!
Core Components of Aircraft Financing Costs
Financing an aircraft is more complex than it seems at first glance. While your monthly payment plays a big role, other important factors add up.
To truly understand aircraft financing costs, you’ll have to consider the full picture, from initial expenses to ongoing costs.
Loan Amount and Interest Rates
The size of your loan and the aircraft loan rates you secure will be two of the biggest influences on your overall pay. A larger loan naturally means higher payments, but the interest rate can have an even bigger impact.
Using tools like an aircraft loan calculator can help you estimate your payments based on different rates and loan amounts.
Down Payments and Loan Terms
Most lenders require a down payment, often a percentage of the aircraft’s price. This is money you’ll need upfront, so it’s worth planning for early. On top of that, the loan term (how long you have to repay) will affect your payments.
Shorter terms mean higher monthly bills but less interest overall, while longer terms spread out the cost but increase total interest.
Hidden Fees and Closing Costs
Don’t forget about those sneaky additional expenses. There may be appraisal fees, legal fees, or loan origination costs included with your loan. These closing costs can quickly add up, so ask your lender all the right questions to avoid surprises.
Maintenance, Insurance, and Other Ongoing Costs
Owning an aircraft involves upkeep, insurance, and other responsibilities. Maintenance costs vary widely depending on your aircraft; insurance can’t be overlooked. Together, they make up a critical part of the aircraft financing cost puzzle.
Take the First Step Towards Aircraft Financing
Now, you’re equipped with the essentials of aircraft financing, from aircraft loan rates to hidden fees. Planning makes the process much smoother.
Whether you’re ready to crunch numbers with an aircraft loan calculator or just starting your research, AirFleet Capital is here to help you take the next step. So, get in contact with us today and start financing your dreams.