Buying an airplane was one of those “holy crap!” moments in our family’s life. Oddly, though, we didn’t have any trouble financing our purchase through our local bank.
In this article, Adam Meredith pulls back the curtain on how aircraft loans differ from other consumer loans. Interesting stuff.
One of the primary insights Meredith shares:
That’s because the underwriting process for an airplane loan is more like that for a house than it is for a car. With both a house and an airplane, lots of documentation needs to be collected and presented.
True. Tons of documentation to consider, and sometimes it’s not all easily available. Meredith mentions that many things are getting easier, though, as the FAA is becoming more accepting of electronic documents.
If you’re considering a purchase or if you’re just curious, it’s a good read.