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:

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 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.

• Very little deposit required
• Term to suit you from 18-60 months
• 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

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.

• 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.

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.