What You Need to Know Before Buying a Plane - Interview with Chris Lee

In light of Chris Lee’s recent contribution to AV Buyer Magazine, we sat down with him for an extended interview. The President of 1st Source Bank’s Aviation Finance Division shared his insights on things every person should know before purchasing an aircraft.

Navigating the Skies of Aircraft Ownership

“In the world of business, time is not just money—it’s a competitive advantage. Aircraft ownership offers the ultimate strategic leverage by drastically reducing travel time and opening new opportunities.”

For many entrepreneurs and business professionals, this represents the pinnacle of efficiency and operational agility. However, the journey to aircraft ownership is paved with critical decisions and substantial financial considerations. “Buying an aircraft isn’t just a purchase; it’s a significant investment into your personal or business mobility,” explains Chris Lee, President of the Aviation Finance Division at 1st Source Bank. “Potential owners need to understand the full spectrum of what this decision entails, from operational requirements to ongoing maintenance costs.”

Understanding Your Needs and Budget

The first step in considering aircraft ownership is to clearly define why you need an aircraft and what you expect to gain from it. Are you looking to increase business efficiency with quicker travel options, or are you fulfilling a lifelong passion for flying?

“Start with your mission,” advises Lee. “Identify what you will use the aircraft for, the range you need, passenger capacity, and other operational requirements. These factors determine not just the type of aircraft you should look at but also impact ongoing costs like fuel, maintenance, and storage.”

Financing Your Aircraft

When it comes to financing, Lee emphasizes the importance of preparation. “Approach aircraft financing like you would in any other business deal,” he suggests. “This means exploring various financing options, understanding loan terms, and knowing how they align with your financial strategy.” 1st Source Bank, with its long history of award-winning service, offers tailored aviation financing solutions that consider the unique needs of each buyer. Chris Lee points out, “We pride ourselves on providing not just financial solutions but also advising our clients through the complex landscape of aircraft ownership. Our experience and accolades in the industry, such as the ‘America’s Best Banks’ title by Forbes, stand testament to our commitment.”

The Importance of Pre-Purchase Inspections

One critical step that Chris Lee insists on is the pre-purchase inspection (PPI). “Never skip the PPI. It’s essential for revealing potential hidden costs and safety issues,” states Lee. A thorough inspection by a certified professional can uncover maintenance issues or modifications that are not up to standard, which could significantly impact your ownership experience.

Total Cost of Ownership

Beyond the purchase price, prospective owners should consider the total cost of ownership, which includes maintenance, insurance, hangar fees, and crew expenses. “Understanding the total cost of ownership is vital. It is not just about the ability to buy but also about the capability to sustain an aircraft financially,” Lee advises.

Choosing the Right Partners

The final piece of advice from Chris Lee is about choosing the right partners. “Whether it’s your lender, broker, or maintenance crew, ensure you’re working with experienced and trustworthy professionals. At 1st Source Bank, we leverage our deep industry connections to help our clients make informed decisions.”

Conclusion

Owning an aircraft is an exciting and potentially rewarding venture. With the right preparation, understanding, and financial backing, it can be a valuable addition to your personal or business assets. As you contemplate the journey toward aircraft ownership, Chris Lee, a seasoned expert in aviation finance, offers these parting recommendations to ensure you embark on this venture with the best footing possible:

  • Get an Initial Consultation: Schedule a meeting with a 1st Source Bank aviation finance specialist to discuss your specific needs and explore suitable financing options.
  • Conduct a Financial Review: Prepare by gathering your financial documents such as income statements, asset documentation, and personal or business financial histories. Review these with your financial advisor to ensure you are well-prepared for this significant investment.
  • Gather Market Research: Continue researching the current aircraft market for available options that meet your criteria. Attend aviation shows, join online forums, and read the latest industry publications.
  • Get a Pre-Purchase Inspection: Once you have identified a potential aircraft, arrange for a thorough pre-purchase inspection by a qualified professional to ensure the aircraft meets all expected standards and regulations.
  • Finalize Your Financing: Collaborate closely with 1st Source Bank to finalize your financing agreement. Ensure that all terms are clear, favorable, and perfectly aligned with your financial capabilities and goals.
  • Close the Deal: With all preparations in place, proceed to close the deal and prepare for the new heights that aircraft ownership will bring to your life and business.

Chris Lee concludes, “At 1st Source Bank, we are not just financing your aircraft; we are investing in your dreams of flying high. We are here to support each step of your journey, ensuring it is as smooth and successful as possible. Let’s take to the skies, together.”

Learn more about aircraft financing or contact Chris.

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