Host: Jason Zilberbrand, President of VREF Aircraft Value Reference & Appraisal Services

Introduction

“Can I afford that airplane?” Jason tackles the question he hears every week—moving past listing prices to the real math behind financing structures, down payments, LTV, amortization, liquidity and net-worth requirements, fixed vs. variable operating costs, and practical rules of thumb. With real aircraft examples and monthly/annual budget breakdowns, this episode shows how to evaluate affordability without getting blindsided.

Topics Covered

1) Myth-Busting: Asking Price ≠ Affordability

• Affordability = (Upfront cash) + (Financing terms) + (Ongoing operating costs).
• Airplanes are more like commercial assets than cars; regulations and maintenance make the cost stack steeper and more complex.

2) How Aircraft Financing Really Works

• Loan-to-Value (LTV): Typical ranges 70–85%; older/large-cabin jets often tighter.
• Down payment: Usually 15–30% of purchase price (or appraised value, if lower).
• Terms & amortization: Commonly 5–15 years; balloons frequent on larger jets.
• Rates (contextual): Recent deals in the low-to-mid 6–7% range, credit- and asset-dependent.
• Credit vs. collateral: Most lenders are credit-first; collateral-based loans trade speed for higher rates, bigger down, stricter covenants, reappraisals, and faster repos if covenants break.

3) Real-World Examples (Illustrative Math)

• Citation (light jet), $3.5M:
  • 25% down = $875k; finance $2.625M @ ~7.25% / 15 yrs ≈ $23.8k/mo debt service.
  • Add maintenance reserves/programs ≈ $10–15k/mo (contextual).
  • Typical expectations: net worth $10–15M, liquidity ≈ 10–15% of loan + 12 months payments.

Complete show notes at https://vref.com/news/episode-5-can-i-afford-that-airplane-9-29-25

Closing & Next Episode

Episode 5 lays out the real math of ownership so you can answer, “Can I afford that airplane?” with confidence.

Next up: deeper dives into DOC/FOC modeling and how to structure ownership (solo, fractional, partnerships) without blowing up your budget—or your relationships.

Let VREF help you value your aircraft