Many dream of flying their plane, but buying one outright isn’t always easy. This is where pre-owned aircraft financing can help. Whether you’re a seasoned pilot or a first-time buyer, understanding the key considerations for financing can make the process much smoother.
This blog is here to guide you through everything you need to know. Read on, and by the end, you’ll feel more confident about taking to the skies.
Take All This Information in Mind
Financing a used aircraft isn’t the same as financing a car or a home. There are unique factors to consider, from the plane’s condition to how to calculate costs. Let’s break it all down.
Aircraft Age and Condition
Not all planes are the same, especially when they’re pre-owned. The age and condition of the aircraft play a big role in determining your financing options. Lenders often prefer newer planes or those in good shape because they’re less risky.
If the aircraft needs repairs or upgrades, expect those factors to influence your loan terms.
Down Payment Expectations
When it comes to used airplane loans, be prepared to put down a significant amount upfront. Many lenders may require a down payment of 15% to 25% of the purchase price.
A larger down payment can be beneficial, as it lowers your overall loan amount and reduces monthly payments.
Loan Term Length
The length of an aircraft loan matters more than you think. Shorter loan terms might mean higher monthly payments, but you’ll pay less in interest in the long run. On the other hand, longer terms make monthly payments manageable but can cost more over time.
Importance of Loan Rates
Loan rates can make—or break—your financing experience. A lower interest rate can save you thousands of dollars, while a higher one can increase costs significantly. Comparing rates from different lenders is vital when hunting for the perfect pre-owned aircraft financing option.
Use of Aircraft Loan Calculator
An aircraft loan calculator is your best friend in planning. It helps you estimate monthly payments, compare loan terms, and see how different interest rates affect your budget.
Get an Aircraft Financed by AirFleet Capital
Financing an aircraft can feel overwhelming, but these key considerations will better equip you to make an informed decision. When you’re ready to take the next step toward your dreams, AirFleet Capital will be there.
Reach out; we’ll make the process simple and stress-free with our used airplane loans.