As the end of 2023 approaches, buyers will start to feel the time crunch and will be scrambling for last minute closings before the end of the year. jetAVIVA sales director, Mickea Smith, along with Pamela Cooksey of JetLoan Capital, discuss some important points to consider when financing a turboprop in today’s market.
The first three quarters of 2023 found more cash buyers than those financing. As we move into Q4, we expect to see more financing as the buyers try to maximize the tax benefits that may be available to them. It is possible to see the Fed raise interest rates again prior to year-end, so the beginning of the quarter may find more buyers financing their turboprops.
Even though we have seen significant interest rate increases in 2023, the interest rates are still manageable for most buyer’s cash flow. Financing terms of up to 20 years may be available with 20% down. This will help make monthly payments more attractive for buyers.
It is always recommended to get your loan pre-approved to make the financing process easier once a plane is selected.
Whether a buyer is looking at a pre-owned turboprop or ordering a brand new one, financing their plane is still a great option.
As we head in to Q4 of 2023, average pricing has decreased, and we are beginning to see more activity as buyers enter the market again. Inspection facilities fill up quickly this time of year, so if you have decided to purchase an airplane in 2023, it is important to identify the airplane as soon as possible to head off any possible delays. Contact us today if you’re interested in getting a deal done before the end of the year.