In the past, athletes, rock stars and billionaires were typically the only passengers who were able to fly by way of private plane. However, reduced prices, a downturn economy and today’s low interest rates have made owning a private aircraft an affordable option for consumers who typically fly commercial.
Aircraft Loan Calculator
Commercial airline prices have skyrocketed over the years. Whether it’s due to the rising fuel costs, inflation or other economic worries, consumers are looking toward other options to travel. Once such choice is the purchase of a private aircraft. However, whether you’re buying your very first private aircraft, upgrading to a newer plane or refinancing an existing airplane loan, an aircraft loan calculator is an important tool that can help you determine the amount of airplane you can afford. By entering the purchase details of the private aircraft into the calculator, you’ll be able to assess what your monthly payment could be.
There are a number of items that need to be taken into consideration once you’ve decided you’d like to finance your own private plane. While some private aircrafts used to run over between $3 and $4 million, technology and global economic misfortunes have contributed to the changes and reductions in prices. What this means for the average consumer is that this mode of transportation is now within their budgetary means. If you’re ready to determine what your monthly cost is going to be, you need to establish the amount of loan that you’d like to finance after your down payment.
If you’ve longed to visit magnificent locations such as France, you may be at the mercy of the commercial airline industry to get you there. In addition to waiting in long security lines, you could be facing exorbitant fees, a lack of space and delays. However, being able to fly by way of private aircraft affords you the most luxurious amenities. Imagine being able to arrive at the airport a short time before take-off. You could also experience private parking, your own movie entertainment, roominess and short security check points. You also don’t have to worry about lost luggage. After you’ve determined your loan amount for your private plane purchase, you want to look into the terms. This is the number of years or months that you would like to pay for the loan. Some people are able to extend the term of their loan amount by years, while others may choose to take months to pay off their debt.
Convenience and ease of travel are primary reasons passengers in the past chose to go the private aircraft route. However, with the many issues commercial airlines are experiencing over the past decade, and the affordability of private aircrafts, consumers are making the move to own their own planes. Whether you’re choosing the plane for business purposes or for family vacations, you’ll be better able to travel to and from other locales than what you would find commercially. After you’ve factored in your loan amount and terms, you’ll want to take into account the interest rate. To determine this rate, a financial institution related to the aviation industry will take into account your credit history. Individuals with a solid credit history and high credit score may garner the lowest of rates. This can help lower your payments and allow you to pay off the loan faster. Other considerations include down payment, debt-to-income ratio, taxes and liquidity.
Navigating Through the Financing Process
Navigating your way through the financing process may seem challenging, but it can be the road to your private aircraft ownership. You want to find a loan company that specializes airplane financing. Some lenders will only finance newer planes, while others will take all types of aircrafts into consideration. In addition to the aircraft, you should take into account other expenses such as hanger fees, fuel, catering, maintenance and salaries for the crew.