If you dream of purchasing your very own small aircraft and have the money for it, do not expect things to go swimmingly. The process is pretty daunting and will require some patience on your end. It is no surprise to see so many first-timers leaving everything in the hands of an aviation advisory business and try to participate as little as possible.On the other hand, understanding the intricacies and delving deep into every detail is also a good approach since it will leave less room for potential errors in your decisions.
Regardless of your approach, there are still some things you need to do so that your dream of owning a private airplane comes to fruition. Let’s take a look at those things.
Just like with other purchases, you need to determine your budget. After all, a private jet is no small investment. It is fair to compare it to a house or a car, though the prices might vary.Usually, there is a 15 percent down payment (it can go as high as 20 percent in some cases), more than a year’s worth of liquid asset payments, and a good credit score. As a rule of thumb, you should not expect to finish the purchase if your credit score is below 700.
While you might have an eye on a fancy aircraft, keep in mind that you should keep things realistic and aim for what you can actually achieve.When you figure out the budget, get started on the paperwork. You will need to submit tax returns, personal net worth information, and other necessary documents. The more information you provide, the easier it will be for those involved in the application process.
The timeline is another thing to note. You might want to get things done as quickly as possible, but you should still expect the whole thing to take as much as two weeks. Understanding the timeline helps you avoid stressful situations and premature plans to travel. You should do that once you are an actual owner of a small aircraft.
Once your package is ready, you or a middleman will submit it to a financial analyst. It is important to have a professional look at all the intricacies so that you have an easier time selecting a lender.If there are some unclear aspects in the package, the analyst will inform you and discuss potential problems. For example, your financial situation does not meet the necessary requirements, or the aircraft itself is out of a lender’s reach.
It is important to talk these things through before you submit an application. If the advice you receive is to withdraw, and it comes from someone with years of experience, you should heed the suggestion and regroup. Otherwise, you will waste time not knowing whether the loan gets approved.A pre-approval process is something you might consider. It takes a bit to take care of everything, but you will get a better picture of the situation. Usually, you only need to submit the aircraft’s specifications and price to your consulting agency, and they will start working on pre-approval.
Once things are finished with the loan, and you have to wait, remember to check the loan’s progress online. Most services that provide loans have real-time updates you can receive on your email or check on a website. At the same time, you can get in touch with the loaning company and ask them for an update yourself.
If you are not that familiar with an aircraft’s worth, you will need to get to that right away. Why? Because knowing what elements make the purchase valuable will give you an advantage while negotiating the purchase. It is one of the negotiation tricks that you should use to get a better deal.When you lack the information, it is much harder to find a deal with a seller. Both parties will have their arguments and try to get the best deal they can. Ultimately, you will still need to settle on a price and take care of insurance, and not just for the aircraft but for both parties involved.
You should also schedule a pre-buy inspection once you know that you are getting the loan. Take a professional with you so that they can check the aircraft. Even if you are well-versed in aircraft, it is still possible to miss an important detail.
Once you finish with all the processes and close the deal, you can start to wait for the aircraft to arrive at your place. Or perhaps you are willing to fly with it yourself and not bother looking for transportation? If so, go for it, and enjoy that first flight.