February 1999 Issue
Aircraft loan rates are at a long-time low. But some deals are definitely better than others.
What’s the biggest fixed cost associated with owning an airplane? Insurance, you guess? Not!
For most of us who have leveraged ourselves to the hilt to slip Earth’s surly bonds, the interest that we pay the bank is our biggest cost, although we hardly notice it.
If you borrow $3,000,000 to finance one of Cessna’s nifty CitationJets, your interest cost will run you around $700 per day. So who cares how much fuel the airplane uses? But even if you’re only borrowing enough to cover the last $100,000 of your used Beech Bonanza, your note will probably cost you around $1200 per month.
The good news is that interest rates are the lowest they’ve been in many years and...
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