Going up in the air in your own private jet can be the thing of dreams. If you’ve been eyeing an aircraft or two, you should start thinking about the possibilities, rather than treating it as a pipedream.
All you need to do is break the process down point by point, as you also find the help of professionals that can offer you financing. Keep reading to learn more about buying a plane and how you can get the aviation financing that you need.
1. Fly Some Planes and Figure Out Which Kind You’d Like to Own
Your first step is to do research and get to know the type of jet you’d like to buy.
Whether you want to purchase a Gulfstream, Boeing, or Bombardier Global, start by breaking down the specs. Some of the most important aviation specs include the length, wingspan, cruise speed, rate of climb, weight, and cabin dimensions.
Learn what these signature brands do best, and start to read some reviews on specific models. Once you have a shortlist of some quality plane options, call around to dealers so that you can book a test flight.
Schedule a test flight when you’re thinking of buying a plane so that you know what to expect. You’ll get to relax in the cabin with a glass of champagne while you test out the plane’s features and gauge whether or not it’s a smooth ride.
Aviation financing is a substantial investment, so test out even the small details when you’re thinking about buying a plane.
2. Research Price Quotes on the Aircrafts That You’re Keying in On
Once you talk to some aviation dealers, begin getting price quotes on a jet. Check around with a few different dealers so that you can compare prices on the same model.
If you’re buying a private jet, you should always learn the market to gauge prices that are fair. Get the plane inspected and appraised so that you know how much you should be paying for it.
Use this research to guide you as you work toward putting in an offer.
3. Consider Asset-Based Financing
Without question, asset-based financing deserves your consideration when you’re looking to make a purchase.
This type of financing opens you up to private credit opportunities for buying an aircraft. You will get access to direct lenders who aren’t bound by the same red tape and logistics that traditional banks have to go through.
As a result, you get access to more creative options, with rates that are favorable. These lenders allow you to use real estate, accounts receivable, inventory, and other assets as collateral.
Your assets speak for themselves and can open you up to capital quickly.
4. Understand Traditional Loan Options
If you’re trying to buy a private jet, traditional loans are always an available option. Reach out to your bank and find out what kinds of aviation loans they offer.
Put in an application, making sure that you’ve openly disclosed your finances and credit. Once the loan is approved, you can take it to aircraft sales companies and begin shopping around.
Many private jet dealers offer in-house lending that you can take advantage of. This is convenient because putting in an application under the same roof that you’re buying your aircraft can simplify the process.
These dealers often have relationships with their own banks and can put in extra effort to help you get approved.
5. Pay Careful Attention to Interest Rates
When you’re getting ready to sign on the dotted line, make sure that you have a clear understanding of your interest rates. Learn how much you’ll pay monthly when financing the plane, and check to see if interest rates go up or stay the same over time.
This tells you the full picture of the loan and allows you to determine which deal is best for you.
6. Prepare a Sizeable Down Payment
Regardless of what aviation loan option you decide on, having a sizeable down payment can be the great equalizer. When you put money down, you’re paying less for the total investment.
This shrinks the hit you’ll take in interest and lets you get more manageable loan terms. Honor your financing every step of the way so that you don’t default, and have no problem maintaining and owning your aircraft.
Get the Aviation Financing That You Need
These tips will help make purchasing a plan and finding aviation financing more seamless and straightforward. As you can see, buying a private jet takes some serious effort, but you also have several options at your disposal.
We’ve been in business for years helping buyers make their aircraft dreams come true with our rock-solid private direct financing.
Take some time to contact us to learn more about the asset-based finance options we provide.