Going up in the skies on your private airplane might be a dream come true. If you’ve been eyeing a plane or two, you must assess the possibilities rather than dismissing them as a pipe dream.

All you need to do is simplify the process down step by step while also seeking the expertise of whizzes that can provide you the finance you need and not get confused between Finance vs Operating lease. Continue reading to learn more about purchasing a plane and acquiring aviation finance.

1. Fly Some Planes To Determine Which Type You Want To Obtain

The first step is to run an analysis and learn about the sort of plane you want to purchase. If you wish to buy a Bombardier Global, Boeing, or Gulfstream, start by reviewing the specifications. The length, cabin size, weight, rate of climb, cruising speed, and wingspan are some of the most crucial aviation specifications.

Learn what these typical brands excel at, then begin reading reviews on respective models. Once you’ve narrowed down your preferences to a few high-quality planes, contact dealers to schedule a test flight.

When considering purchasing a plane, arrange a test flight, so you know what to anticipate. You’ll be able to relax in the cabin with a bottle of champagne while testing out the plane’s amenities and determining how smooth the journey is.

Aircraft financing is a notable investment, thus verify, even the smallest things when considering purchasing a plane.

2. Gather Pricing Quotations For The Aircraft You’re Interested In

Begin receiving pricing quotes on a jet after speaking with myriad aviation dealers. Check with different dealers to compare prices on the same model. Use an Equipment lease calculator for the job.

If you’re looking to buy a private aircraft, you must continuously explore the market to determine acceptable costs. Get the plane checked and assessed, so you can reason out how much you should spend on it.

Use this study to help you as you prepare to make an offer.

3. Think About Asset-Based Financing

When it comes to making a transaction, asset-based financing is without a doubt worth thinking about.

This kind of financing or Equipment lease agreement allows you to fetch private finance for the purchase of an aircraft. You will have access to direct lenders who are not constrained by the same red tape and constraints that traditional banks are.

As a consequence, you get accessibility to more creative possibilities at lower pricing. You can employ inventory, accounts receivable, real estate, and other assets as collateral with these lenders.

Your assets talk for themselves and can immediately open the door to cash.

4. Learn About Standard Loan Alternatives

Traditional financing is always an option if you want to buy a private jet. Contact your bank and ask about the types of aviation loans they provide.

Fill out an application, taking care to fully reveal your money and credit. Once the financing has been granted, you may go to airplane sales firms and start looking around.

Many private jet dealerships provide in-house financing, which you may take advantage of. This is beneficial since applying while purchasing your aircraft might streamline the method.

These dealers oftentimes have links with their banks and can go above and above to assist you to get authorized.

5. Keep a Close Eye on Interest Rates

When you’re set to sign on the dotted line with one of the Equipment leasing companies you’ve chosen, be sure you understand your interest rates well. Know how much you’ll pay each month if you finance the plane, and keep an eye on interest rates to see if they rise or fall over time.

6. Make A Sizable Down Payment

Whatever aircraft loan type you select, having a sizable down payment might be a wonderful equalizer. You pay less for the overall investment when you put money down.

This reduces the amount of interest you’ll pay and allows you to get more suitable loan terms. Respect your funding every step of the way to avoid default and have no issues sustaining and owning your aircraft.

Get The Aviation Financing You Need

These pointers will make selecting a plan and acquiring aviation finance easier and more uncomplicated. As you can see, purchasing a private jet requires some major work, but you also have myriad options.

Three Aircraft Financing Underwriting Tips

When it comes to underwriting airplane loans, some underwriters disregard essential factors that might readily hit the bank far earlier in the loan cycle than you’d imagine. The purpose of this post is to emphasize three vital points that will put any underwriter far ahead of any hardships with the asset that he or she has recently financed.

• Maintenance Tracking: From the Start
• Where have you gone?
• What are your thoughts?

Summary

If you consider planes in the same way that a worried parent would consider his or her children, you’ll quickly recollect the “three things” and ensure that your underwriting requirements include a good plan for diet, feelings, and whereabouts.