4 Tips for Purchasing an Aircraft
Owning your own aircraft can be a fantastic way to facilitate your business or leisure travel. However, it is important to do your research before you make a purchase to ensure you have exactly what you need. This can help you avoid overpaying for an aircraft or encountering unexpected complications during the purchase process.
- Select the Right Aircraft
Whether you plan to purchase a new aircraft or find one that you can fix up, you should look at multiple models before making a selection. Bring a mechanic or other knowledgeable person with you to look for potential issues. It may be tempting to purchase an aircraft that has a low price point, but that may be a mistake. A low price can indicate an aircraft that requires extensive and expensive repairs before it is able to safely and legally fly.
- Research Lending Institutions
While some people may have the money to purchase an aircraft outright, that is often not the case. If you require a loan, then look for a lender that is experienced in aircraft finance. Find multiple lenders and read any online reviews that are available and ask other people in your network for recommendations.
- Choose a Loan
Depending on your situation, you have several aircraft finance options available. Lending institutions will examine the value of the aircraft, your credit history and your current financial state when determining your eligibility. You may be required to put up collateral in exchange for approval when financing your aircraft. Compare the differences between fixed rates and floating rates, the length of the loans, repayment plans and other terms when deciding which choice is best.
- Examine the Legal Paperwork
Purchasing an aircraft involves handling many types of legal documents. You will need to provide your tax returns, income statements, and appraisals to the lending institution. The paperwork you need to sign may contain legal terms or clauses that are difficult to understand or appear to be open to interpretation. It is a good idea to have an attorney examine the legal documents before you sign anything. This can ensure that you understand the terms of the loan and can negotiate any problematic terms.
Finding the best deal possible may take time, but it is well worth the effort. Buying an aircraft is a big financial obligation, and it is important that you research your options thoroughly before committing to an aircraft or a loan. This can help you purchase the right aircraft at the best price.