Tuesday, August 24, 2010
Buying Your First Airplane
Navigating the purchase maze
Advice From The Pros
We contacted leading insurance and finance companies and asked them to share a few words concerning their company and what they look for in a client.
The best piece of advice is to select a single aviation-insurance broker that you trust and partner with them to purchase the proper insurance for your needs. All underwriters will be looking for the same basics to assess the risk: pilot qualifications, aircraft information, location and area of operations, aircraft usage detail and loss history. All profits of our agency go to supporting the future of GA—a big added bonus for our customers.
Avemco Insurance Company is a direct writer for owners and operators of GA aircraft, giving pilots access to the company without going through an agent. The basic thing we look for is if the experience of the pilot matches with the performance and complexity of the aircraft. If the pilot doesn’t match with the aircraft, does the person have the base knowledge/skill so that they can transition into the aircraft with training?
Chartis insures light aircraft and pilots and is one of the largest insurers of homebuilt aircraft. Speak with an aviation specialist broker before you go plane shopping and compare offers from different aviation insurance companies and their policies carefully. Then when you get your insurance policy, read it and contact your broker with any questions.
Nation Air Aviation Insurance
Insurance isn’t all about price, it’s about coverage and protection. Some aircraft-pilot combinations don’t mix, and we’re honest and upfront with potential issues like that. But with our large network of offices and underwriter relationships, we can generally answer needs others may not be able to.
We’re one of the oldest aviation specialty houses in the country, and the insurance companies have entrusted us with their computer rates so they can scan all 14 for the best price in minutes. We look for a pilot who takes annual recurrent training if we’re quoting for more sophisticated aircraft or commercial exposures. If they don’t know where to go for training, we tell them! We ourselves fly so we can communicate effectively.
Fifteen percent down is required. Loan program terms and availability will vary depending on aircraft type, age, purchase price and utilization along with the buyer’s financial situation. Customer must provide two years of tax returns, a personal financial statement and verification of liquid assets. We’ll analyze the debt-to-income ratio (monthly income based on tax-return figures versus monthly obligations), liquidity and net worth.
AOPA/Bank of America
AOPA Aircraft Financing Program is a trusted lender with experienced associates and competitive rates and terms. With more than 14 years of aircraft lending experience, AOPA Aircraft Financing makes your aircraft purchase fast and secure. Get preapproved before you shop.
CFC is a single source for aircraft sales and financing. With nearly 75 years of aircraft sales, Cessna and its allied financing organization bring an unmatched level of experience to helping first-time aircraft purchasers.
We have over 45 years of experience and we look for an individual with good net worth, solid liquidity, good credit history and a steady income pattern. Today, credit is tighter with lenders looking for a credit score that’s 700 or higher and requiring 15% or higher down. Cash is king!
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