Calling all frequent flyers!
Have you decided it’s time to own your own plane?
Whether for business or pleasure, for profit or fun, you’ve concluded that you’re ready to add an aircraft to your inventory. After all, paying for a chartered flight can cost anywhere from the low thousands to over $10,000 per flight hour—you might as well put that money toward ownership. Most vendors ensure that 200 hours a year in the sky justifies a purchase.
Anyone who’s taken out an auto or mortgage loan can handle aircraft loans. Financing your plane is much like financing your house or your new SUV.
In this guide, we discuss the details of getting an aircraft loan.
What Is an Aircraft Loan?
If you want to buy an aircraft that you can’t afford to pay for upfront, an aircraft loan is a fantastic option. Like financing a house, car, or boat, an aircraft loan allows you to work an aircraft into your budget, paying a monthly bill plus principle over a specific amount of time.
Most used private jets will run you about $200,000, a surprisingly low rate. New private jets will cost you in the millions, with one of the cheapest options—a Cirrus Vision Jet—ringing up at $2 million. Unless you’ve got that kind of money lying around, you’re a good candidate for a loan.
A great way to see if you can afford to finance is by using an aircraft loan calculator. By entering in the loan amount, down payment, interest rate, and term, you’ll be able to see numbers like the principle and monthly payment. Using a calculator can help you determine whether an aircraft loan is feasible for your budget.
Are There Additional Costs to Owning an Airplane?
Financing an airplane comes with ongoing costs. Just as owning a car requires maintenance, so, too, does owning an aircraft.
As you budget for your new private jet, don’t forget to add these ongoing costs into your payment plan. They might include:
- Hangar rental (where you will store your plane)
- Routine maintenance
- Unexpected repairs, like blown tires
- Flight crew
- Aircraft insurance
Owners are responsible for these costs.
Where to Get Aircraft Loans
These business loans can be obtained in many places—but that doesn’t mean all providers are worthy of your time.
It’s as important to shop around for a loan provider as it is to shop around for the aircraft you hope to buy. You’ll be in a long-term business relationship with whoever you choose to finance with.
Look for a company that provides, at a minimum:
- Competitive rates
- Advisors with specific aircraft financing experience
- Flexible repayment terms
Remember to compare quotes before settling on one option.
Ready, Set, Jet
If you regularly spend hundreds of hours in the sky, it’s time to get serious about aircraft loans.
The money you’ll save in the long run can buy you a jet—allowing you to enjoy the sky at a moment’s notice. Good luck (and don’t forget to pick us up on the way)!
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