Buying an airplane is one of the most exciting and rewarding decisions any business owner can make. But you need a lot of information to ensure that the aircraft you choose is the right one for your mission.

“Mission should always be the number-one determining factor when choosing which airplane to buy,” says AOPA Aviation Finance President Adam Meredith. “And mission involves more than range and payload—it also entails all the details that go into aircraft ownership, like taxes, training, insurance, and maintenance.

“You also have to look at the actual ownership structure,” he adds. “For instance, will the airplane be under the business’s name or be owned by a separate company with a leaseback arrangement? Financing can be complicated if you’re working with a partner. Many banks will want the other ‘owner’ to be a guarantor or acknowledge the bank’s interest as the first titleholder of the aircraft.”

It’s Not Like Buying a Car

If it sounds complicated, that’s because it is.

“The biggest mistake we see repeatedly is people underestimate the time it takes to arrange the right financing,” Meredith says. “It’s not like buying a car; it’s more akin to purchasing or refinancing a home. There are taxes, titles, insurance, and other things to consider.”

That’s why Meredith strongly suggests that you start the business side of the process a month or more before you shop for the airplane. But you don’t have to go it alone.

“AOPA Aviation Finance is here to help any prospective buyer every step of the way,” he explains. “We have a lot of great educational information on our website to help you walk through the purchase details and financing and ensure the airplane you buy is right for your mission.”