Sponsored by Aero Space Reports
Finance: Buying tips
Consider this before you buy
Are you planning to purchase a turbine aircraft? Consider these four things first:
- Purchasing an airplane no older than 20 years will get you the most competitive rate and terms.
- Make sure you and the lender are both valuing the airplane the same way. Certain add-ons may not merit the same value to lenders as they do to you, the buyer.
- Be prepared to put your best foot forward. The stronger you appear as a borrower, the lower the rates and more flexible the terms. For example, additional guarantees can get you a better rate and terms. Likewise, expect a higher rate and more restrictive terms if you are unable or unwilling to provide a business or personal guaranty.
- Carefully consider how long you intend to keep the loan (and/or whether you would likely be trading up) and get comfortable with prepayment penalties if you can, or else be prepared to pay more in rate or closing costs.
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aopafinance.com
800-62-PLANE (75263)
Adam Meredith
President of AOPA Aviation Finance Company
Adam Meredith, the longtime president of AOPA Aviation Finance Co., died after a long battle with cancer in December 2023. He is remembered for his passion for helping fellow pilots, leading a team devoted to putting flight training and aircraft ownership within everyone’s reach.
Aero Space Reports
Sponsor of Aviation Finance
Aero-Space Reports, a third-generation family-owned business, has been a leader in the aviation title industry for more than 45 years. In that time, they’ve seen tens of thousands of aircraft purchases: They’re all too familiar with what can go wrong, and they know exactly what it takes for things to go right.