Aircraft Finance

Contact us for more info on our flexible financing options.

Aircraft Finance Designed For Pilots And Their Ever-Changing Budgets

Below could be the missing piece to securing your next Aircraft.

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AIRCRAFT FINANCE

AT Aviation Sales Ltd works in partnership with My New Aircraft who provide a credit brokerage service for our aircraft. We have been working closely to bring these products into the marketplace for our customers and are confident that our customers will be provided with an efficient, professional service. We have published two finance examples on each of our aircraft for sale ( if no examples are shown on an aircraft you have interest in, please contact us ) to give you an indication of cost for two different ways that you can finance your next plane. If you have an aircraft you would like to purchase through ATAVIATION or even outside of ATAVIATION we can help with a finance option to suit you and most budgets. This page provides you with information regarding the finance we are able to offer as a finance introducer, getting you a little closer to that new purchase:

Why Finance Your Next Aircraft?
Generally, used aircraft do tend to hold their value relatively well providing they are well looked after. Finance can be a great way of keeping your money in the bank whilst paying for your next aircraft in the form of a monthly payment to suit your budget.

What Kind Of Finance Products Are Available?
There are many ways to finance your new aircraft. We have prepared an explanation of the two kinds that we have prepared examples for on AT Aviation Sales’ website below along with some of the advantages and disadvantages:

Option 1. Credit Sale – No Balloon
This is a straight forward credit sale agreement where firstly, you pay a deposit, then make a number of monthly instalments that include interest, over anywhere from 18-60 months. There is a “document fee” with your first monthly payment to cover the finance’s company’s costs and the cost to register the aircraft mortgage with the CAA. With a credit sale agreement there is no “option to purchase fee” at the end.

Advantages
Term to suit you from 18-60 months
Very little deposit required
You own the aircraft outright at the end
The loan is on the aircraft in the form of a mortgage registered with the CAA
A fixed rate of interest

Disadvantages
If you don’t keep up repayments your aircraft may be repossessed
A personal guarantee may sometimes be required
There may be an interest penalty for settling early

Option 2. Credit Sale With A Balloon Payment
This is the same as a credit sale without a balloon payment, except, a proportion of the balance to finance is saved until the end of the agreement which is payable in a lump sum. On some occasions the balloon payment can be up to 50% of the value of the aircraft, or, as low as you would like it to be.

Advantages
Lower monthly payment than a credit sale without a balloon
Very little deposit required
Term to suit you from 18-60 months
After the balloon payment is made, you own the aircraft outright at the end
The loan is on the aircraft in the form of a mortgage registered with the CAA
A fixed rate of interest

Disadvantages
If you don’t keep up repayments your aircraft may be repossessed
A personal guarantee may sometimes be required
There may be an interest penalty for settling early
Credit sale agreements with a balloon payment, although having the same APR% cost more in interest charges due to the balloon payment. This is because the interest is charged on the amount outstanding. There will be a higher amount outstanding throughout a credit sale with a balloon payment, therefore even though the interest rate is the same, the amount of interest payable will actually be higher than if there was not one.

Finance Rates
My New Aircraft’s finance rates are published below:

Balance to fund of £5,000-£9,999 – 10.9% APR
Balance to fund of £10,000-£19,999 – 9.9% APR
Balance To fund of £20,000+ – 8.9% APR

Please note that on aircraft costing £120,000 or more, it may be possible to achieve a better interest rate in the form of either a fixed or variable rate aircraft mortgage with one of our alternative finance providers which we will endeavour to do for all of AT Aviation Sales’s customers.

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