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How to Finance Your Airplane Dream

Exercise the same level of rigor in finding the right support services as you do the right aircraft.

Traditional aircraft-specific lenders, those dedicated to aviation financing exclusively, understand the market and provide terms that withstand the test of fluctuations in the economy. [Adobe Stock]
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Key Takeaways:

  • Private aircraft financing is a unique hybrid process, blending aspects of car and home loans, often with faster approval times, but its complexity varies significantly based on the aircraft type being financed.
  • Engaging an aircraft-specific lender is crucial due to their specialized expertise in the aviation market, understanding of diverse aircraft categories (including experimental or vintage), and ability to navigate complex financial processes like title searches.
  • Buyers must conduct thorough due diligence, diligently inquiring about loan terms, fees, prepayment penalties, ongoing reporting requirements, and the impact of factors like aircraft age, maintenance history, and intended utilization to secure the most suitable financing.
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Purchasing a private aircraft differs vastly from other big-ticket-item transactions you’ve likely completed, and the differences may surprise you. First, for some context, we’ll discuss private aircraft financing, covering piston singles through light jets—aircraft mostly flown/ operated by the owner.

The private aircraft loan process is best described as a hybrid between buying a car and a house. Aircraft lenders will examine some of the same criteria as a home mortgage lender, including credit and income, but the analysis is generally performed much more quickly than a home mortgage.  Depending on the size of it, an aircraft loan can be approved within a week or two and close as quickly as a few days thereafter.

Jim Blessing

Jim Blessing is president of AirFleet Capital with more than 25 years of aircraft finance experience, specializing in serving clients in the owner-flown piston, turboprop, and light jet segments. He is a pilot and lifetime member of AOPA, EAA, and the Seaplane Pilots Association, and is a prior director and officer of the National Aircraft Finance Association.

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