Credello: Are You a Maverick? 5 Options for Financing a Plane

Has the release of Top Gun: Maverick got you feeling the need for speed? If you're considering financing a plane of your own, here are five ways to do it.

Five ways to buy a private plane

1. Get a personal loan.

Your bank or credit union may be willing to lend you money for a plane purchase, and generally, they'll offer competitive rates. Be sure to compare rates and ask about terms and conditions before signing on the dotted line. You can use Credello's recommendations for personal loans as a starting place if you're unsure which lenders offer the best rates.

2. Consider a lease or loan from a plane broker.

If you're not ready to buy outright, look into leasing or borrowing from a plane broker. These companies typically have strong relationships with lenders, so they can help you find the best financing options available. You might be able to get a lease that lasts for 10, 15, or even 20 years, depending on the type of aircraft you choose. And don't forget: Plane brokers can also help you find the right aircraft at the right price.

3. Use an auction site like eBay to find used planes.

When it comes time to buy your plane, don't forget about auction sites like eBay. You can often find planes in great condition - and sometimes they're even cheaper than brand-new planes! Just be aware that used planes can often have some hidden issues that you won't see in an ordinary sale (like defects in the engine). That's why it's always important to get multiple estimates before making any big investments - especially when it comes to expensive items like airplanes.

4. Pool resources with others to buy a plane.

If you're interested in buying or leasing a plane, why not reach out to your friends and family? Often, they'll be happy to lend a helping hand (assuming they're not too invested in their own planes!) Pooling resources can often lead to great savings. 

5. Sign up for a private jet share program.

If you're interested in using a private plan occasionally and don't want to deal with the hassle of maintaining it yourself, consider joining private jet share programs. These programs let you share the ownership of a plane with other members, similar to a vacation timeshare, which can often lead to significant discounts on air travel.

How do I find the best financing option?

Finding the best financing option isn't easy - it depends on your financial situation and requirements. But one way to start is by talking to your bank or credit union about your options and getting their input. You might also want to consult with an online lender that specializes in aircraft loans - this will give you access to more information and allow you to compare different offers side-by-side.

Once you've found the right financing option for your needs, make sure to document everything - including the terms of the loan, the amount of down payment required, and your repayment schedule - so that there are no surprises down the road.

The bottom line

Choosing the right financing option for your plane purchase can be difficult, but it's important to remember that there are a variety of options available. By talking to your bank or credit union and consulting with an online lender, you should be able to find the best financing option for your needs.

Source: Credello


Categories: Personal and Family Finances

Tags: Debt, Financial Services, Personal Finance

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