December is here and the countdown to year-end is upon us. With the year-end push, it’s important to remember the FAA and banking holidays and schedules if you’re planning to purchase, finance and close before year-end. Couple this with planning for extraneous events (i.e. an ice storm in Oklahoma City that may shut down the FAA title office as happened last year), and we recommend considering the following timetables to meet a year-end closing target. Note that Applications can still be submitted after these dates, but meeting year-end closings may be compromised.
- For loans over $2 Million, we recommend submitting completed credit applications no later than December 9th.
- For loans between $750,000 and $1.99 Million, we recommend submitting completed credit applications by December 15th.
- For loans below $750,000, we suggest a target of no later than December 17th for submitting a completed credit application.
Note also please the following this year:
- December 24th – FAA typically closes early (Wednesday)
- December 25th – FAA and banks are closed
- December 26th – FAA projecting limited staffing (Friday)
- December 31st – FAA typically closes early (Wednesday)
In a few short weeks, we will bid 2009 goodbye – with a range of economic news and opinions consuming our TV’s, newspapers, and conversations for the better part of a year, 2009 has been anything but boring. Though many are ready for the new start that 2010 brings, 2009 seems to be turning the tide in the 4th quarter! In recent months we have heard much of the negative market banter subside as positive signs are unarguably returning. According to Nielsen Co., consumer confidence in the US experienced its first gain since early 2007 when it grew 4 points in the 3rd quarter.
Aviation is no exception. A tough start to 2009 is giving way to signs of recovery and we figured we’d pass along the good news. Last week at the annual AOPA Summit convention, the atmosphere was upbeat as buyers were beginning to come out of hibernation and discuss near-future purchases with us. But don’t just take our word for it; the General Aviation fleet inventory, as represented by one of the largest online sales resources (controller.com), has dropped 5.7% since April as more people are cashing in on the great deals that can be had in today’s buyer’s market. Another indicator that year-end 2009 is a great time to purchase is supported by the recent Aircraft Bluebook (industry standard valuation guide) newsletter. Carl Janssens, Editor and ASA certified appraiser, states “For the most part, values have arrived at ground level. Inventories have shown signs of stability with little or no growth in units for sale.” In a November press release from Cessna, they also report a stronger and “measurable increase” in piston aircraft sales for September and October.
So what does all this mean for you, the potential aircraft buyer? With the ability to fix low interest rates for up to 20 years, tax incentives for business buyers, historically low prices on great aircraft, motivated sellers, and signs of economic recovery on the horizon… now is a great time to buy!
If you have questions or would like to find out how to apply for a low rate finance program, now or in 2010, we’d be happy to send you updated terms or get you pre-approved while you shop for the perfect year-end aircraft.
We hope you and your family have a great holiday season!
The Team at AirFleet Capital