Why Aircraft Ownership is a Good Investment

From general aviation and light business jets to turboprop and turbine helicopters, our aircraft financing experts have experienced incredible demand for financing of all types of aircraft both professional and personal. Why? For a number of reasons.

For busy professionals working in various private and public sectors like oil/gas prospection, resource management, global financial markets, etc., owning a privatized aircraft for business travel is beneficial to time efficiency and productivity. Further, some aircraft can actually hold and even increase in value over time, making them not only exciting and useful but potentially excellent investments as well.

For personal use, if it doesn’t make sense because of the time management advantage, tax considerations, and overall effectiveness, then owning an aircraft certainly makes sense because of your passion for the skies. Let us explain:

 

Is Ownership a Good Idea?

Purchasing an aircraft is a daunting task – but it doesn’t have to be. With the expert advice of Travelers Financing and Leasing Solutions, you head into a complex marketplace with the assurance that you’re in good hands. Our experience in specialized aircraft financing solutions such as asset-based term loans and pre-approved financing lay out your options before shopping for the perfect craft.

 

Like any sound investment, you should always first ask yourself a few key questions:

  • What are the benefits of owning an aircraft for you?
  • Is your preferred make/model a reputable investment?
  • Can you afford to set 25 percent of the overall budget aside for maintenance costs?
  • Is this an investment for your company or organization?
  • Is this a shared purchase?
  • Should you finance or lease?

 

Effective for Frequent Flyers

Ownership of an aircraft is an even better investment if you find yourself flying consistently – and more so, find yourself waiting in lines and dragging your heels through international customs, baggage, and slow commercial airline procedures day in and day out. For the consistent flyer, privatized aircraft ownership makes perfect sense. It not only gives you the freedom to act and do as you please but also gives you the confidence to tend to spur-of-the-moment deals and obstacles. With an aircraft, you’re almost always available.

For the corporate sector, having access to a ready-set aircraft means never missing an important opportunity, or deal finalization ever again – it also means increased efficiency when it comes time to leave. Time is money, and when you spend less of it in line, sorting through paperwork and checking bags, you’re able to spend it where you need it.  

For passionate hobbyists, owning your own aircraft means taking your friends and family across the province for a special event, traveling across the country at a considerable discount when compared to commercial flight prices, and having the freedom to come and go as you please.

 

Aircraft Hold Their Value

One of the more financially beneficial reasons to invest in an aircraft is the fact that unlike most other forms of transportation, airplanes, helicopters and jets can actually appreciate in value, rather than decrease over time.

In many cases, Travelers find ourselves financing existing aircraft that require maintenance, upgrades or freeing up capital for owners to invest elsewhere. In this regard, purchase financing is our most active product. When you consider financing over a direct purchase, you may consider the appreciation of the aircraft in the long run.

For example: over a typical 5-year term, we’ve found that many aircraft are worth a similar price to the original purchase price – or have increased slightly, meaning that our borrowers and clients are in essence only paying for the use of the aircraft over time – in a way, this means that your potential loan payments act as rental fees and net down the costs of borrowing. Of particular note, is the fact that the recreational aircraft market is less susceptible to the economic pendulum, allowing value to remain consistent – whereas business jets bolster value that is more tightly bound to the state of the economy.

An example of an aircraft model which has increased in value over time would be the Cessna 180 – a popular lightweight single engine, fixed gear, low-wing aircraft primarily used in the recreational flight sector. In US dollars, the 1968 Cessna was purchased for $17,9500 and found to be worth between $100,000 – $150,000 today.

 

Alternatively, the 1974 Beechcraft B55 Baron, a twin engine piston aircraft, sold new for $77,250 and sells today for $100,000 – $175,000.

(Photos: http://www.flyingmag.com/aircraft/pistons/aftermarket-stars-six-used-airplane-bargains)

 

Does this make an aircraft a good investment? Yes.

 

Travelers Finance is Canada’s leader in aircraft financing. We use our competitive knowledge of the industry to help Canada’s passionate pilots and frequent flyers take to the sky on their own terms.

Posted On Tuesday, February 28th, 2017
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