Menu

4 Things to Consider When Purchasing a Turbine Aircraft4 Things to Consider When Purchasing a Turbine Aircraft

Money is available and oftentimes interest rates are low. After coming out of the 2008 financial crisis, however, you need to take some things into consideration before purchasing your next turbine aircraft. Lenders have preferences when it comes to certain makes, models and year of aircraft.
  1. Purchasing airplanes that are no older than 20 years will get you the most competitive rate and terms.
  2. Make sure you and the lender are all valuing the airplane the same way. Certain “add-ons” may not merit the same value to lenders as it does to you the buyer.
  3. 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 guaranties can get you better terms and rate. Likewise, expect higher a higher rate and more restrictive terms if you are unable or unwilling to provide a business or personal guaranty.
  4. 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.  

Great rates. Great terms. Helpful and responsive reps. Three good reasons to turn to AOPA Aviation Finance when you are buying an airplane. If you need a dependable source of financing with people who are on your side, just call 800.62.PLANE (75263) or click here to request a quote.

Have a specific aviation finance question you would like to see in future articles? Submit it here, and it may be highlighted in an upcoming content piece.

Related Articles