Aircraft Financing—Yes It’s Available

By Jason Erdkamp  2-3-09

For a while now most of us have come home each night and watched the news and see interest rates dropping and big banks merging. And then on weekends sat on our favorite bench at the airport and watched planes go by. You’ve probably noticed that fewer aircraft are flying these days. Those who now have financial priorities off the airport are selling their planes and prices are great. In the last few months aircraft sales have been largely cash transactions but there is credit available to those who qualify. Check with many of the smaller banks who are less likely to lend millions to fancy dressing rock stars, and more likely to do business with someone like yourself. One example is Ontario, California’s Mission Oak’s National Bank.  Mission Oaks is a local bank in Southern California with 5 branches. One of their services is Aircraft Lending, and they are issuing loans on aircraft now while other credit lines have cut off aircraft.

Fuel prices are dropping too, and everyone has their own opinion and forecast on what OPEC might do next. But AVGAS really is priced on the wholesale level roughly the same as Premium Unleaded. Shop your FBO’s and use services like AirNav to sort out the bandits in the region. And for aviation kerosene the prices are even lower with locations in Texas at $1.40/gallon.

So if you have been waiting to buy an aircraft now is a very good time. The used inventory is high, fuel prices low, and credit available from smaller banks. Also visit with your local Aircraft Dealers. They will often have a network of lenders whom they regularly do business with and can steer you in a safe direction and guide you from costly mistakes. And if this is your first aircraft purchase a local dealer is highly supportive in sourcing hangars, qualified mechanics, and other services like co-pilots. Don’t be shy to visit with a dealer as you may need their help when it comes time to sell your airplane or upgrade in the future.