You have chosen your Diamond aircraft - now it's time to decide the best way to purchase it! Based on different economic motivating factors coupled with personal preference, you will make the decision either to pay cash or finance your new Diamond. In order to make the financing process simple, Diamond has teamed up with a leader in aviation finance, AirFleet Capital Inc., to offer you a range of aircraft financing programs that meet your needs.
Whether you are planning to fly your plane privately, or put it on leaseback with a Diamond Flight Center; registering the aircraft personally or in a business; or are looking for a variety of terms and payment options - AirFleet has a loan program for you.
AirFleet Capital is an Aircraft Financing company that offers loans for general and commercial use aircraft ranging from $50,000 up to $10,000,000. Our goal is to provide the most competitive financing and best service in the industry for General Aviation aircraft of all types. Combined with exceptional attention to our valued relationships, AirFleet Capital's services deliver a refreshing attitude to aircraft financing. The customer is our first priority, and understanding the customers' needs is fundamental to our success day-in and day-out.
AirFleet Capital has a track record of offering exceptional financing services to the industry. This includes partnering with manufacturers, dealers, and industry organizations to assist buyers with financing and developing creative programs to fulfill their dreams of aircraft ownership.
AirFleet Capital believes in the Diamond investment and works to provide Diamond customers with the most competitive rates, professional service and dedication to finding the programs that fit you. They have a long relationship with Diamond Aircraft and have supported Diamond buyers with financing since 1999.
AirFleet has two offices - one in Winchester, Virginia and another in Chandler, Arizona to handle financing across the United States.
AirFleet Capital offers loan programs tailored to the needs of Diamond aircraft buyers.
Personal and business loans apply to all buyers who operate their aircraft without directly making money out of the operation of the plane. Personal/business use loans typically offer the lowest down payments and longest terms.
Commercial use terms apply for aircraft placed on leaseback to or operated directly by flight schools, or used in charter (Part 135) operations. They tend to require slightly higher down payments, shorter terms, and adjusted rates to take into account the increased depreciation of aircraft operated in high-utilization environments.
This loan calculator has been customized for your use to estimate payments on your Diamond aircraft purchase. Note however, that it is for estimating purposes only. For a personalized quote, please call 1-800-390-4324 to speak with an AirFleet Capital representative or request a quote online.
Financing through AirFleet Capital is a quick, easy 3 part process.
Application and Approval Process
Complete and forward to AirFleet Capital, the 2 page application, 2 years personal tax returns, and if self employed, 2 years business tax returns. You may mail, overnight express, fax, or email this information. Please include all applicant(s)/guarantor(s) information. (See "Financial Information Requirements" sheet for further details).
Upon receipt, AirFleet will review the Application and will contact you with any questions.
AirFleet will give an approval typically within 1-2 business days. More complicated business and personal financings may take longer.
The Closing Process
Closing takes 2-3 business days - 1 day to prepare and overnight documents to you and 1 day for you to sign and return the documents. To help assist you, AirFleet includes a pre-paid, pre-addressed overnight return envelope to expedite the process.
You sign, notarize, and return the documents to AirFleet. AirFleet will work with you, Diamond and your Diamond dealer throughout the process to ensure seamless transfer of title and loan proceeds as authorized.
Enjoy purchasing your new Diamond, because AirFleet Capital takes care of the details.
We will submit all of the necessary documentation to the FAA for filling (Registration, Bill of Sale, Security Agreement, etc). and forward a complete set of documents to you for your records.
Aircraft financing in many ways is different and similar to other financial transactions you have done in your life - whether it be a home mortgage, a home equity loan or a car loan. Aircraft, with their long useful life, typically are financed at loan terms of 15-20 years.
Despite these similarities, we have learned over years of financing thousands of aircraft that it pays to think about the specifics. The following FAQ shows some questions you should ask yourself - and provides initial answers. For a more detailed discussion of your aircraft financing needs, please contact an AirFleet Capital representative at 1-800-390-4324.
AirFleet Capital/Diamond Financing FAQs
If I can get a low, 15% down payment - why would I ever want to put 20% down? The rates don't seem to be all that different?
Although 15% down is the minimum required, there are 2 compelling reasons for considering a 20% down payment - in a word, flexibility. The most obvious, of course, is the financial benefit of a 20% down payment - lower rate, smaller monthly payment, easier credit terms and approvals, etc. However, the second reason, and perhaps even more compelling, is to position you for your next new Diamond purchase. By providing a higher down payment, you acquire more equity. Not only does this decrease the financial risk, but once you are ready to trade up, this additional equity can be put towards your new Diamond. Oftentimes this means, that even with a more expensive aircraft, you will not have to come up with any additional money out of pocket. This proves to be invaluable when you are ready to upgrade. It's easier to sell the benefits of the new Diamond purchase to your "Board of Directors" (or spouse) when you don't have to pay "out of pocket".
I lease my car - but I have found that it's hard to get leases in the aircraft market. Why don't you offer a lease program?
There are many valid reasons for leasing an aircraft but those reasons are limited to a business buyer (not an individual) and all relate to the tax treatment or accounting presentation. When most people think of a lease, they often use a car lease as a point of reference - little down payment, low monthly payments, turn the keys back after 30 months, etc. The reality is that most leases require a "security deposit" and/or an "Amount due at Closing" equivalent to a down payment. However, a car lease usually does offer a lower monthly payment when compared to a car loan. This is not the case with an aircraft because aircraft loans are amortized over a period of 20 years thereby offering the lowest monthly payment. Furthermore, a lease only allows a specified number of hours usage per year. If you exceed the allotted hours, you will pay much more, similar to a car mileage allowance, and if you don't use the hours you still pay for the hours because it is already built into the lease payment. Another consideration is that any damage to an aircraft will result in a "market value adjustment". This means that you will pay the cash difference between the projected "no damage" value and the estimated "damaged" market value at the end of the lease. Finally, aircraft historically hold their value very well and the lessor (lender) values the aircraft to ensure they receive a profitable sale and gain at lease end - the lessee ultimately ends up paying for this in the form of a higher monthly payment. In most cases, the loan offers a much better value and greater flexibility, which is why leases are not popular with aircraft buyers.
I have used other banks and even my local bank in the past; why should I use AirFleet Capital for my Diamond purchase?
AirFleet Capital has supported Diamond and its buyers since the DA-20C was first introduced and we have been alongside Diamond for the introduction of every new model since - we know Diamond! This long history coupled with our belief in Diamond, the company, its products and its people, gives us a unique understanding and a dedication to offer the best rates and terms for Diamond customers. To accomplish this, AirFleet uses a variety of lending sources that allows us broader financial market access to create customized financing programs specifically for customers of Diamond Aircraft. Further, we have built close relationships with the Diamond family to provide an easy, smooth and quick financing experience for you, our customer. AirFleet Capital, your Diamond dealer and the factory work seamlessly together to ensure all of the details are taken care of and get you flying as soon as possible.
Is an aircraft loan approval based on collateral?
A loan approval is based on a number of factors, including aircraft value. All Diamond aircraft have demonstrated strong historical values and therefore represent excellent collateral positions. Accordingly, the loan is secured with a lien on the aircraft. In addition to collateral values, lenders also consider a customer's cash flow, credit history and financial situation. With the application, aircraft lenders review the customers' personal financial statement, tax returns to verify income/cash flow and credit. This provides us with an overview of your financial situation and helps qualify you for your new Diamond purchase.
Why the difference in terms for Private use vs. Commercial use?
In general, terms for private use aircraft are 10% down with a 20 year term. For commercial use programs, you generally see a larger down payment and/or shorter term loan. The reason for the difference is the utilization and corresponding annual hours put on the aircraft. As the utilization of an aircraft increases, the depreciation of the aircraft due to high engine/airframe hours along with extra wear and tear is accelerated. In order to offset this effect, financing terms are set to protect both the customer and the lender by tailoring the down payment and term to the utilization. By structuring the program with a higher down payment and/or shorter term, you are less likely to be "upside" down in your loan (owing more on the aircraft than what it is worth) when you are ready to sell or trade in your aircraft.
Can I lock in my rate?
Upon approval, your rate is locked for 30 days. If you require more time, in some cases we can lock your rate for up to 90 days with a small rate lock fee due at the time of approval.