Compare cash flows, remaining debt and contractual flexibility using the same aircraft and ownership horizon. The smallest rate or payment alone does not reveal which proposal fits the purchase.
Normalize the transaction
Enter identical price, equity, use, borrower structure and assumed closing date. Record each offer's principal, cash-paid and financed fees, rate, amortization, maturity, reset terms and conditions. If a lender uses a different valuation base, display it instead of forcing equal loan amounts that were never proposed.
Use one holding period
Choose the same intended sale or review date for all offers. Sum actual cash paid through that date and include remaining principal or payoff. Otherwise a longer amortization can appear artificially cheaper because it postpones principal beyond the comparison. Identify taxes and aircraft operating expenses consistently across all scenarios.
Compare risks in plain language
List balloon timing, rate reset, prepayment, guarantees, collateral, reporting and intended-use restrictions. A slightly different price may buy flexibility relevant to the owner. Conversely, a low initial payment may transfer risk to the exit date. Ask the lender for written clarification of items missing from the term sheet.
Preserve the evidence behind the result
Keep dated proposals with the assumptions and calculation report. Mark unknown fees or conditions as unresolved rather than zero. Recalculate after the aircraft, value, equity or closing date changes. The tool is a transparent comparison aid; it does not choose a lender or establish that an indicative offer remains available.
Illustrative decision worksheet
Illustrative only: Offer A has lower payments but leaves $150,000 more principal at the planned sale date. Include that balance difference, fees and any exit costs before describing it as cheaper. If one offer resets its rate earlier, display a stress case rather than pretending the initial payment applies to the entire holding period.
Your next-step checklist
- Normalized inputs
- Same exit date
- Contractual differences
- Dated offer evidence
Sources & further reading
Primary sources support the relevant facts. Our planning questions and illustrative exercises are editorial analysis; they do not replace transaction-specific advice.
- AOPA original loan-structure context · accessed 2026-10-28