According to the latest data, there are more than 220,000 aircraft in the United States. Are you looking to buy one for yourself?
Buying a plane is a big deal (in more ways than one), and, unless you’ve recently come into a huge chunk of change, chances are it might take you a little while to save up for one.
Knowing the typical airplane cost will make it easier for you to set a goal and start saving today.
Read on to learn everything you need to know about buying and saving for your first plane.
How Much Does an Airplane Cost?
There are a lot of factors that influence the cost of an airplane.
For example, how large is the plane? How many engines does it have? A lightweight single-seat plane is obviously going to be less expensive than a multi-engine plane.
You can purchase an ultralight aircraft, which seats just one person and has a single-engine, for between $8,000 and $15,000.
A slightly larger single-engine plane, which can hold at least two people, will set you back between $15,000 and $100,000. For an even larger, multi-engine plane, you’re looking at costs of $75,000-$300,000, on average.
Airplane Financing Options
Some people may already have the cash needed to buy one of these planes outright. If you’re like most of us, though, you’re going to need some time to save up.
You might also want to look into airplane financing options. There are a few different options you may want to consider that will help you get your hands on your plane faster without draining your bank account.
Depending on your credit score and your debt-to-income ratio, you may be able to get a loan from a bank or credit union. Another option to consider is to work with a broker.
Talking to a broker may be a better option if you’ve never financed this type of purchase before.
Brokers are often more willing to go over the details and structure your paperwork so it increases your chances of loan approval. With banks and credit unions, you’ll often get a yes or no decision and nothing more.
On the flip side, though, brokers tend to have higher interest rates than banks and credit unions, so you’ll have to decide what matters more to you: extra guidance or lower rates.
Ways to Save Money When Buying a Plane
There are also a lot of strategies you can implement to reduce the amount of money you have to spend to get your plane. Here are some tips that will make it easier for you to save up and purchase an airplane sooner:
Do Your Research
When it comes to buying a plane, one of the best things you can do to save money is your research.
If you’re thorough when it comes to learning about different types of planes and the pros and cons they have to offer, you’ll avoid making a rash decision that could end up costing you a lot of money farther down the road.
Buying used is also a good way to lower the cost of your first plane. There are lots of websites and organizations set up for individuals looking to trade a plane or sell their planes for lower prices.
Check out these resources to learn about the used planes that are currently available and get in touch with sellers who may be willing to give you a good deal.
Consider Using It for Business
This might not save you money on the actual airplane purchase, but it will help you save money on the cost of ownership.
If your plane can be used for business matters, you can deduct some of the costs of ownership, such as the cost of fuel. This can save you thousands of dollars throughout the lifespan of the plane.
Consider the True Cost of Ownership
Speak of the cost of ownership, be sure to think about all the other factors and expenses associated with owning an airplane.
Remember, it’s more than the cost of the plane alone. You also have to think about the cost of fuel, the cost of maintenance and repairs, and the cost of renting a place to store your plane.
Factors all of these things into your research as you compare different planes to save money and ensure you’re getting the best deal.
Get Pre-Approved for Financing
Getting pre-approved for financing before you start shopping can be a useful strategy. It gives you a bargaining chip when you’re talking to sellers. It also helps you stick to a budget and avoid spending more than you can afford.
Look Into Factory Incentives
Don’t forget to look into factory incentives, too. Airplane manufacturers often issue incentives to encourage people to buy their planes.
In order to become aware of these incentives, it’s best to develop a connection with an aircraft broker.
You can also reach out to individual manufacturers, but that will require more time and effort on your part. It might be worth it, though, if it helps you save money on your plane.
Start Saving for Your Plane Today
Now that you know more about the average airplane cost and the options available to help you finance and save for it, are you ready to get started?
Keep these tips in mind and you’ll have no trouble finding the right plane for you at the right price.
Do you want to learn more about managing your money so you can save for your plane faster? If so, check out some of our other finance-related articles today.