AOPA Pilot Magazine - February 2022 - 104

FLY WITH AOPA
Thinking of buying?
F INANCE /
AOPA resources are key to a successful transaction
BY NIKI BRITTON
5 quick tips to
prepare for your
purchase /
1. Define your mission first. How do you
envision using the airplane? Are you going
to travel someplace? With other people?
How long are these trips going to be? At
what time of year? These will define the
type of aircraft that fits your need best.
PURCHASING AN AIRCRAFT can be daunting-particularly for the first-time buyer.
With so much to know, it is important to seek guidance from experienced aviation
professionals. Did you know that AOPA has extensive resources to help you get the
information and guidance you need?
If you are just starting your search for the perfect aircraft, AOPA can help you find
aircraft with the capabilities, performance, and features that fit the kind of flying you
plan to do. AOPA's guide for first-time buyers can help you establish a realistic budget,
apply and get approved for financing, negotiate your purchase, and close on your
first aircraft (finance.aopa.org/aviation-finance/first-time-buyers).
The AOPA Aircraft Guide lists more than 88 aircraft that are currently in production
and includes model overviews, specifications, performance, and airspeeds. Use
the AOPA Aircraft Guide to find the ideal aircraft for you (aopa.org/aircraftguide).
AOPA's Operating Cost Calculator will help you estimate the operating cost for
a broad range of aircraft by looking at
each area of cost and figuring out annual
and per-flight-hour expenses (aopa.
org/go-fly/aircraft-and-ownership/
operating-costs-calculator).
The AOPA Aircraft Valuation Service
can be used as a starting point that provides
guidance on the retail value for
selected aircraft, based in part on equipment,
time since overhaul, and other
significant factors (aopa.org/vref).
Purchasing an aircraft is a major
investment that should be thoroughly
considered. The tips and resources from
AOPA can help you feel confident and
ready to make your purchase.
niki.britton@aopa.org
104
AOPA PILOT / February 2022
WHAT OUR MEMBERS SAY
" I used AOPA Aviation Finance, but
I also shopped around. I was lucky
enough to have friends in the area
that work at a bank and a credit
union that will do aircraft loans.
When I got the rate and terms
from AOPA, they both said without
hesitation: Take that deal. "
AOPA Aviation Finance can
assist with aircraft loans, lowering
your interest rate, and even
upgrading to a more sophisticated
aircraft. finance.aopa.org
2. Define your intended aircraft's support
community. Who owns the same aircraft at
your local airport? Does that airplane have
an associated club or online community?
Tap into those human resources to get real
world intelligence.
3. Define the aircraft's true cost. What is
the reserve? How easy is it to obtain parts?
What's the access like to a mechanic who is
an expert on your make and model? What's
your airplane's down time going to be
based on mechanic and parts availability?
4. Define whether a used or a new airplane
is your best value. If you own your own
business and you can also utilize bonus
depreciation to write the purchase off
as a business expense, and if your price
includes a manufacturer's warranty for a
new airplane, that slightly higher cost may
mitigate the issues raised in point 3.
5. Define your financing options. How
would your return compare between
an all-cash deal and taking a loan while
investing the cash? What's your comfort
level in having cash flow and leverage
versus owning an aircraft outright? Where
you stand on the leverage risk-tolerance
scale focuses how you're willing to pay for
the airplane. -Adam Meredith, president,
AOPA Finance
204,980
The number of aircraft in the general aviation fleet in
the United States in 2020.
DID YOU KNOW?

http://finance.aopa.org/aviation-finance/first-time-buyers http://www.aopa.org/aircraftguide https://aopa.org/go-fly/aircraft-and-ownership/operating-costs-calculator https://aopa.org/go-fly/aircraft-and-ownership/operating-costs-calculator https://aopa.org/go-fly/aircraft-and-ownership/operating-costs-calculator http://www.aopa.org/vref http://finance.aopa.org

AOPA Pilot Magazine - February 2022

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