Select The Aircraft That's Right For You!

There are many, many ways to finance a aircraft, as in any loan, key items to you need to be aware of are the money you need to contribute, interest rates, terms, and the small print.

After you have decided on the source of the aircraft loan you will need to be "approved" which means do you have the wherewithal to pay it back. The paperwork can be called a "loan application", "finance application" or "credit application" and is the lending sources information about you. Take the time to complete this form completely.

This is also a good time for your annual credit report checkup. Most lenders will require proof of income, and credit information. The interest rate you will pay can be all over the board and can be either fixed or variable. If you want to know what your monthly payment will be and have it stay that way, find a fixed rate loan.

If you are buying a large aircraft and this is the only loan you can get, go for the variable rate loan which can have a little lower start up interest rate but these "go with the flow" so to speak interest rates often do rise. The other choice you may have is whether the interest is calculated on a per day basis, i.e., you pay for the time you borrow the money or if it has been calculated over the life of the loan. Also, be aware of any early payoff penalties or fees.

Determine how long you want to be pay for the aircraft, the longer the length of the note, the longer it will take you to acquire equity, which is the part you own. This can get complicated depending your cash situation, your income and how long you usually stay enamored with a particular aircaft. The "term" of the loan usually ranges between 5 to 25 years for most aircraft.

The amount of down payment can depend upon the lender, how much you are financing (the minimum amount being financed by a lot of lenders at this time is $25,000), the age of the aircraft, what you plan to do with it, and where you are going to be taking it, and can be as low as 10% or as high as 25%.

There are many, many ways to finance a aircraft, as in any loan, key items to you need to be aware of are the money you need to contribute, interest rates, terms, and the small print.

After you have decided on the source of the aircraft loan you will need to be "approved" which means do you have the wherewithal to pay it back. The paperwork can be called a "loan application", "finance application" or "credit application" and is the lending sources information about you. Take the time to complete this form completely.

This is also a good time for your annual credit report checkup. Most lenders will require proof of income, and credit information. The interest rate you will pay can be all over the board and can be either fixed or variable. If you want to know what your monthly payment will be and have it stay that way, find a fixed rate loan.

If you are buying a large aircraft and this is the only loan you can get, go for the variable rate loan which can have a little lower start up interest rate but these "go with the flow" so to speak interest rates often do rise. The other choice you may have is whether the interest is calculated on a per day basis, i.e., you pay for the time you borrow the money or if it has been calculated over the life of the loan. Also, be aware of any early payoff penalties or fees.

Determine how long you want to be pay for the aircraft, the longer the length of the note, the longer it will take you to acquire equity, which is the part you own. This can get complicated depending your cash situation, your income and how long you usually stay enamored with a particular aircraft. The "term" of the loan usually ranges between 5 to 25 years for most aircraft.

The amount of down payment can depend upon the lender, how much you are financing (the minimum amount being financed by a lot of lenders at this time is $25,000), the age of the aircraft, what you plan to do with it, and where you are going to be taking it, and can be as low as 10% or as high as 25%.