It’s Flying Season!
Spring has arrived and across the country, people are gearing up (or at least daydreaming about it while they’re digging out!) to jump back into their airplanes. Whether to get out and see those clients you haven’t met with all winter, take the family to your favorite spring break destination, or just enjoy seeing the earth come alive from above, each of us start getting the itch after a long, cold season, to take flight.
AirFleet has seen some positive signs of the economy warming despite record low temps across the country this year. With tax incentives extended to 2013 and the ability to still buy an airplane at a great price coupled with our low, fixed financing rates – this first quarter has been the busiest we’ve seen since 2008! We have high hopes that the momentum will continue and increase as buyers with Spring Fever begin making purchase decisions.
Please contact AirFleet Capital to get an aircraft loan quote on that airplane you’ve been eyeing. With flying weather and all the holiday bills paid off, it’s a great time! You can call to discuss options with a financing specialist at 800.390.4324 or you may request a quote online. If you are considering a purchase anytime this year, it is always good to get pre-approved for a dollar amount while you shop. Approval is free and it allows us to be ready to close quickly once you find “the one.”
Get out there and enjoy – safe travels!!
25 Days left in 2012 for customers to buy an aircraft and cash in on the great tax incentives and historically low interest rates this year! Financing is still readily available for you December buyers out there!
As we gear up for a big year-end rush, we know many of you are purchasing before the clock strikes midnight on 2012. If you are interested in financing that purchase, please see the important dates and recommended deadlines below to ensure a smooth closing before December 31st:
December 14: Last day for complete credit application submissions for loans above $1 Million to arrange financing before year-end
December 21: Last day for complete credit application submissions for loans below $1 Million to arrange financing before year-end
*Please note: applications can still be submitted/closed after these dates, but meeting year-end goals may be in jeopardy.
December 25: Christmas Day (Closed)
December 31: New Year’s Eve
(please note many employees at the FAA and Banks leave early both Christmas Eve and New Year’s Eve, making it more difficult to handle a high volume of late closings these days)
Plan ahead as weather can impact the best-laid plans. Oklahoma City has been known to get weather this time of year, shutting down the FAA and Title Companies.
Since December is the busiest time of year for many of us (including dealers, banks, title companies and the FAA), response and action can become more sluggish the closer it gets to 12/31. Getting approved asap and working out the details in advance ensures a smoother transaction. If you are still deciding between a few different options, get pre-approved for a finance amount today, then finalize your plans with the funds in your back pocket.
Don’t hesitate to contact us and get started today at 800.390.4324 as we quickly approach our suggested application deadlines above. We look forward to hearing from you and helping you ring in 2013 with your new bird!
We can’t believe it is already that time of year, the 4th quarter is upon us. With optimism that this past year seems to have stabilized, we are looking forward to an uptick the last months of the year as business buyers who have turned the corner satisfy a tax appetite (see BLOG: Tax Incentives), and those of us who feel more personally comfortable decide to get back into purchasing for fun!
For those interested in financing their year-end purchase, it’s best to get the process started early. With approval expiration at90 days, we are inside the window for all purchases in 2012. Even if you have not picked out an exact aircraft, there is no application fee so now is a great time to get approved for a loan amount – shop with the funds in your back pocket, and feel confident to close on a hot aircraft deal you come across quickly.
It is also the busiest time of year for dealers, escrow companies, the FAA, banks and finance companies. Due to the volume of transactions, sometimes response and action is slightly delayed the closer you get to December 31st. That being said, we are happy to work with someone who decides to purchase a plane starting mid-December, but to avoid stress and the risk that the purchase could get pushed into the new year, it’s always best to have the details worked out before then.
For a quote, or to get started on the application process, please contact us at (800) 390-4324. We look forward to hearing from all you early birds soon!
Our high hopes were realized at the AOPA Summit 2012 in Palm Springs. With attendance up a substantial amount over the 2011 event in Hartford, we spoke to almost triple the people this year. It was a breath of fresh air as we are in full 4th quarter swing and the majority of the customers were ready to move before the year-end deadline. Palm Springs was a great venue last time and did not disappoint this year. With the Parade of Planes from KPSP to the Convention Center, having the static display and exhibit hall in one location is perfect for attendees… and of course, the weather doesn’t hurt!
We would also like to announce the winner of our show giveaway – Congratulations to James McLaughlin of Brookfield, CT on winning the Stratus: Portable In-Flight Weather for ForeFlight! Thank you for coming by our booth and we hope you can put this to good use in your new airplane!
Thank you to everyone who stopped by our booth, it was great to meet you all (and see old friends too!). We are looking forward to seeing everyone at the new location in Ft. Worth, TX for the 2013 Summit. Since the show historically alternates coast to coast, this will provide easier access for pilots in the middle of the country.
Interest rates remain very attractive for aircraft buyers. That, coupled with great values, makes for a uniquely buyer-friendly market that hasn’t been seen in recent history and may not be duplicated for years to come. It’s a wonderful time to purchase!
In the past 90 days, we have seen relatively level underlying rates; a slow, softening in rates through December and January was met with a slight uptick in February. However, rates remain lower today than they were in early 2011, and have been hovering at this low-point for about 7 months, as illustrated with the chart below (Source: Treasury.gov – using the 3-year Treasury rate in this example from January 2011 through February 2012).
While the FED has committed to keeping rates low through the next 12-18 months, we are likely to see increased pressures on the underlying rate market if fuel prices or inflation tick-up more aggressively. The general sense is that we might start to see some increases as we move further into 2012, but the increases are expected to be minimal at most, likely keeping rates at or below averages seen over the past 24 months.
AirFleet offers a selection of fixed and variable rates to match a client’s particular rate-risk desire. Please call us at (800) 390-4324 to get a specific quote for a fixed-or variable-rate product.
It’s that time of year again, time for a little aviation Fun in the Sun; the 37th annual Sun ‘n Fun Fly-in starts Tuesday, March 29th in Lakeland, FL. Thousands of aviation enthusiasts, aircraft manufacturers and vendors will arrive at “Spring Break for Pilots” to show off their wares and participate in the camaraderie of aviation. We are looking forward to the chance to get out and meet with customers and dealers, while enjoying a welcome morale boost for our industry!
To many, including us, Sun ‘n Fun is the first large general aviation trade show of the year, and eyes are on the event to gauge the industry activity and mood of those in the thick of aviation. As exhibitors and attendees, we are eager to knock the dust off after a long winter (and a few years), with hopes that more positive economic news transfers into increasing sales.
The 2011 event is sure to be memorable. The F22 Raptor is returning, and tributes are planned for the 20th anniversary of Desert Storm, the 10th anniversary of September 11, and a performance by the Blue Angels to celebrate the 100th anniversary of Naval Aviation. In terms of General Aviation excitement; Cessna will be unveiling their “Next Generation” Corvalis, an update of the model they purchased from Columbia, and Piper will be launching a new Private Pilot training program – “Ready, Set, Fly”. We look forward to these and other exciting manufacturer announcements.
Of course, the highlight in our mind will be the excellent selection of aircraft and services available on-site to support aircraft buyers. AirFleet will have a full staffing throughout the event, with loan specialists on-site to discuss our current fixed and variable rate financing programs from single-engine piston aircraft, to helicopters and business jets. Recent underlying interest rate decreases have reflected favorably on the rates we are able to offer for aircraft financing. For those able to benefit from the year long tax incentives, ready to trade up, or refinance their current aircraft, now is a great time to lock in these lower fixed rates – we don’t know how long this will last!
If you are attending Sun ‘n Fun, please stop by and see us (Hangar D, Booth #23) – we’d love to catch up or providing you with financing rates and terms for your upcoming purchase or refinance!
By way of background, aircraft lenders adapt their cost-of-funds to a variety of metrics, but one we keep our eye on is the 5-year Treasury. We watch this rate more closely it helps us see what’s coming.
In early November 2010, the 5-year Treasury hit a low-point (roughly 1.17% on November 1st). At that point, our aircraft lending rates hit a low-point too, which overlaid well with year-end closings. However, the 5-year Treasury rate increased to 2.02% on January 3, 2011, and has since continued to climb 1.16% since the low-point – hitting 2.33% as of yesterday (February 9th).
Below is an article link that explains a little more of the background, and some of the factors leading to these increases (courtesy of the Wall Street Journal/ Marketwatch): Article: Underlying Rates
Our rates have not changed in the past 90 days, but the underlying advances would lead us to think that rates are close to rising on the aircraft lending front. It would be a great time for clients to lock-in pre-approvals at today’s lower rates, which would give them 30 days to shop for an aircraft (and rate protection during that period).
As a final note – the Federal Reserve announced in October/ November that it would buy short-term debt over the following 6 months, in an effort to continue to stimulate the economy through lower interest rates. In this time, 5-year treasuries have nearly doubled, in part due to the healing economy. Consider this – are these underlying advances being held-back by the Fed action? If so, could we have a situation where rates would “pop” once the buyback ceases sometime in April/ May? Either way, the rate “bottom” seems to be here today.
Check out our own Steve Smestad, Founder and CEO of AirFleet Capital, discussing the state of the aviation market from our perspective.
AeroTV: AirFleet Capital Sees Encouraging Trends
With all of the changes in today’s lending environment, it’s time to set the record straight on what’s really happening with aircraft lending. From changes in down payment, to bank appetite, to financial information required from you, there are plenty of questions that buyers have regarding the financing process today.
Listen to the recorded interview between Lezonne Hertz of AirFleet Capital and Pat Redmond of Suburban Aviation Aircraft Sales to get all of these aircraft loan answers and more: Podcast: New Rules of Aircraft Financing
Mid-way through the Sun ‘N Fun fly-in and things have been heating up in Lakeland, Florida. Although no official attendance statistics have been posted, the crowds have been steady and Lakeland Linder Regional Airport is buzzing with aviation enthusiasts enjoying near-perfect weather!
Per usual, there are hundreds of exhibitors with renewed zeal in 2010 to kick the airshow year off with a bang. Along with the usual daily activities, forums, workshops, and demonstrations, SNF also premiered their new Exhibit Hall E this year and the Thunderbirds have been preparing for their daily airshows, guaranteeing more excitement and bigger crowds.
At the AirFleet Capital booth, many customers have been inquiring about aircraft financing programs and engaging us in conversation, wondering what’s happening in the lending market. Quoting aircraft from an older Cessna 172 to a new business jet and everything in between, most customers we are talking with have a positive outlook on the upcoming year and are getting closer to making purchase decisions after maintaining a wait-and-see approach the past 18 months. In polling other exhibitors and with confirmation of aircraft sales on the show grounds, everyone also seems to be sensing this same attitude shift among attendees – a refreshing change from the uncertainty at last year’s show!
Stop by and see us if you will be at the show – we are located in Hangar C Booth 53 and would be happy to discuss how our low financing rates can help you purchase that aircraft you’ve had tagged in your favorites the past year – Happy Spring Flying!