Purchasing an airplane is a major financial commitment. Even on the resale market, an airplane can represent a major investment for an individual or a business. Those hoping to make use of a private pilot’s license or to expand a small commercial fleet may put off a purchase because of interest rates, price trends or concerns about the overall economy.
Given that acquiring an airplane is often not an immediately necessary expense but rather a long-term investment, purchasers may try to strategically plan when they move forward with a transaction. It can be difficult to know what may happen with the secondary market and interest rates next quarter or next year.
How do buyers know when it is the right time to acquire an airplane?
Any market can be a buyer’s market
It can be a major mistake to wait indefinitely for rates or price trends to fluctuate in a specific way. Particularly on the secondhand market, opportunities arise with little forewarning. Prospective airplane buyers may want to have resources or financing available so that they can take immediate action when the best opportunities present themselves.
Usually, the best time to buy is when a buyer recognizes a good deal or when an ideal airplane comes on the market. As with home buying or any other major transaction, the details of a specific purchase opportunity generally outweigh overall economic factors when deciding whether it is the right time to buy.
Having enough income and a good enough credit score to qualify for competitive financing or the liquid capital necessary to acquire a plane outright can serve as indicators that it may be the right time to buy. A distressed seller offering an airplane for a relatively low amount can be another indicator that prompt action is the best option.
Those hoping to acquire an airplane in the near future may want to earmark resources for that transaction or secure pre-approval for financing so that they have an opportunity to move assertively when the right vehicle for the right price comes onto the market. Perspective buyers typically also need to have someone on hand to evaluate the disclosures and other documents provided by the seller to ensure they make a wise decision.
Having assistance throughout the entire airplane purchasing process and even financing applications can be beneficial for those in the market for an airplane. The right opportunity can arise with little advance notice, making the flexibility to act quickly of the utmost importance for those actively hoping to buy.