The global economic downturn has created some fantastic purchasing opportunities of high ticket items, including aircraft, for those who still have plenty of cash on hand. In fact, there may never again be a better time than now to actually purchase an aircraft.
Hence and if you are considering purchasing an aircraft, a short article in the April 2010 issue of the Conklin & de Decker newsletter is well worth reading because the article listed the five questions you should be asking yourself before even looking at any aircraft. These questions are:
- Do you have a budget and know how to use it? In other words, do you have the cash or the cash flow to maintain an aircraft?
- Do you have emergency money? This included money for both scheduled inspections and unanticipated repairs that may arise and cost thousands of dollars.
- How is your credit? Financing an aircraft purchase, especially one that might be needed for a business, is always an option if you have good credit and cash flow.
- Do you have an existing relationship with a financial institution? If you plan to finance a purchase, its always better to seek financing from an institution that knows you and your business. In addition, the website of NAFA has a membership directory of aircraft financing companies.
- How old is the aircraft? A good rule of thumb is that an aircraft age at the end of any finance or lease term should be no greater than 20 years as a newer aircraft is usually easier to sell than an older one.
Keeping the above questions in mind will greatly aid you in determining whether you should take advantage of some of the once in a lifetime deals that are now out there.