subject: Taking Advantage Of Aircraft Financing [print this page] When we evaluated our finances, we came to the conclusion that we would be able to afford to purchase a reasonably priced used airplane with some Aircraft Financing.
Of course, my husband, wanting to be a good neighbor, agreed instantly and plans were made. The long awaited for day arrived and the weather cooperated with a beautiful clear sky and we all headed off to the hangar. Upon arrival, our neighbor showed us his plane and my husbands eyes lit up like a little boys at Christmas. We climbed into the airplace for the long anticipated ride. My husband sat in the co-pilot seat and from that moment when he entered the cockpit, he wanted his own plane.
When we evaluated our finances, we came to the conclusion that we would be able to afford to purchase a reasonably priced used airplane with some Aircraft Financing. Because the cost of the type of airplane we were interested in purchasing ranged from as low as $15,000 to as high as $100,000 and because we preferred to go with the higher end purchase we knew we could only do this with Aircraft Financing.
People have a few different Airplane Financing options. Obviously, a loan will probably need to be taken out for most people, because they are too expensive to purchase with cash. It can be obtain from banks but one must have an Aircraft Financing expert. Most fixed rate loans for airplanes usually range from several years. However, if a loan with a shorter term is desired, it can also be found. There are also loans with adjustable rates. These loans are usually shorter than the fixed rate loans. In any case, there are a few options for people looking to buy an airplane.
When obtaining an aircraft financing, whether it be commercial aircraft financing or for personal use, you'll need to prioritize or make a checklist as to what you'll require or request an appraisal on the aircraft you wish to purchase in order to undertake the aircraft finance loan process. This is important to do if you want to receive a loan that gives you satisfactory aircraft financing rates and subsequently affordable and manageable payments.
*A "Desktop Appraisal" might also be somewhat unkindly called a "Quick & Dirty" appraisal. You provide the basic aircraft information, but the appraiser will work with you to ensure adequate info is supplied. A "Fair Market Value" is then estimated. This type of assessment will not be acceptable to most government agencies or where you might be trying to settle a legal dispute or an accounting issue.
*A "Certified Appraisal" is really the only true way to determine an aircraft's "Fair Market Value". A visual inspection is carried out by PTA and a detailed condition report established. The log books are also subjected to an equally thorough review. Compliance against Airworthiness Directives and Service Bulletins is also established, if required - its highly recommended but can be an option. All this work is carried out as far as possible to pre-agreed mutually acceptable timeframe and cost. A detailed certified report is the deliverable. Never forget however that you will only ever get "An opinion". Expert it might be, but perhaps in some cases more than one independant valuation is called for.
With the helpful information in hand, you should be able to secure aircraft financing that will give you the courage to proceed financially with the purchase of your aircraft.
