Aopa Aircraft Finance - When it's time to get the money to buy your plane. Lenders look at more than just your income and credit history. When financing an aircraft, the aircraft determines certain financing conditions. Here are the main factors that a flight finance company checks.
Usage: The financing company wants to know you're buying the right airplane for your needs—not more than you need or can handle. The lender wants to know how you use your aircraft (personal, commercial or business). There are different criteria for purchasing a single-engine aircraft for occasional short-haul flights than for purchasing a workforce aircraft that will be flown 50 hours per month for business purposes. An aircraft intended for personal use has different conditions than an aircraft used in flight school or charter (commercial) aircraft. Because the more you use the plane, the more you use it. the more it fails Especially with student pilots and the greater the breakdown in the aircraft. Since the financial institution co-owns your aircraft, it is important that their title retains its value.
Aopa Aircraft Finance
Age Creativity and model-general; The older the aircraft, the fewer financing options there are. When buying a turbine or twin-piston aircraft, age is more restrictive and will affect your loan terms. Because turbine aircraft and piston twins depreciate faster than piston aircraft, these loans tend to have a shorter duration and usually require more money. Once you have selected a flight for purchase, the Lender checks the technical data of the aircraft and compares it with the value shown in the price summary.
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(Similar to Kelley Blue Book for cars). In most cases, Lenders provide a loan against the purchase price of the aircraft or a loan.
The airplane panel is an added factor. Avionics drive the value of today's aircraft higher than ever before. A good vintage avionics airframe is a hard sell. Preparing an automated dependent monitoring distribution license can be expensive. If a certain aircraft is not equipped with upgraded avionics, its value will be lower and the lender must take this into account. Engine time and condition have always been and will continue to be key values, but price is just as important to aviation longevity. Now it determines the value of the loan. And avionics tend to get cheaper quickly, so updates need to be fresh. In new avionics, values tend to drop to zero after three years.
History: The more complete information you can give the lender about your aircraft, the better. The greater your chances of getting good terms for your loan. for example, To know all the technical data of your aircraft; You must provide photos and show its maintenance and damage history, if any. A good record of timely maintenance will help you. If the seller is unable or unwilling to provide this record to you; This should be a red flag - reconsider the purchase. In addition, many lenders will not lend to aircraft with damage records or incomplete records, limiting your financing options.
Down payment: A down payment is required for aircraft financing. The most common is a 15-20 percent down payment. If you have exceptional credit; You can pay a 10% deposit. There is absolutely no down payment in aviation. The higher the interest payment. The longer the loan term (if you want).
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Loan Amount: Lenders are interested in borrowing at least $50,000 to purchase an airplane. Although there are also options for a cheaper loan. Loans usually require both shorter terms and higher interest rates. Conversely, the larger the loan amount, the larger the loan amount. The more options, the better. Therefore, your interest rate should be lower.
AOPA Aviation works with a variety of lenders to meet the various financing needs of members. Instead of working with a commercial bank that has no knowledge or respect for airplanes, AOPA's flight crew can help.
Good prices. Master Vocabulary. Helpful and responsive representatives. 3 good reasons to turn to AOPA Aviation when purchasing an aircraft. If you need people on your side and a reliable source of financing, call 800.62.PLANE (75263) or click here for a quote.
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Adam Meredith, President of AOPA Aviation Company, has been lending for over 15 years; Aviation technician with small business management and customer service experience. Adam is a commercial pilot with multiple engines and instruments. AOPA Senior Vice President Glasair Sportsman's diesel-powered LSA aerial photo; Tom Haines Flying with Glasair pilot Nick Frisch. Felts Field (FFA) Spokane, WA USA
Answer: Yes, We have loan options for most LSAs. These aircraft typically do not have book values, so lenders look for three comparable listings of at least 25 registered with the FAA. If the make and model do not meet this requirement. A desktop assessment is required. AOPA Aviation will assist in coordinating any appraisal with the lender.
Answer: We currently do not have specific loan options for gyrocopters. These aircraft are often difficult to value due to the limited market. But we do offer our flexible flight loan. This product does not consider aircraft. Its flexibility allows it to be used for aircraft that do not fit the traditional loan model. Call and speak to one of our account managers and they can complete our online application.
Good prices. Master Vocabulary. Helpful and responsive representatives. 3 good reasons to turn to AOPA Aviation when purchasing an aircraft. If you need someone by your side and a reliable source of financing, call 800.62.PLANE (75263) and click here for a quote.
Flight Training Finance
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Adam Meredith, President of AOPA Aviation Company, has been lending for over 15 years; Aviation technician with small business management and customer service experience. Adam is a commercial pilot with multiple engines and instruments. Aviation finance is a specialized field. This in itself is a limitation for borrowers as most commercial banks are not familiar with its specifics.
In addition, many banks that offer aircraft loans do not have an aviation department, so they make exceptions for certain customers and are limited in the purchase of aircraft.
Most lenders are larger; two crew members; They focus on turbine aircraft. On the contrary, 80-90% of our members plan to fly their own aircraft. They come to us by plane for personal use, not for business. This means that big ticket turbines are usually unsuitable; It also means that the number of aviation options available to them will decrease.
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And over 60% of loans processed last year were for first-time buyers. These members are new to the market and are looking for trusted sources to guide them to the best deal for their situation, not the institution they are interested in getting a loan from. They know and trust us. They know AOPA has their back. For these reasons, AOPA works with a team of about a dozen lenders dedicated to serving our members and all the markets we serve.
AOPA begins each transaction process with an in-depth conversation with the member. The aim is to ensure that everything from the aircraft type and class to the intended mission profile is a top priority. We then match this information to each member's financial picture. These discussions will ultimately result in options that best meet the member's specific circumstances.
It is true that there are competing companies that advertise in aviation publications and on aviation websites. In our experience It is not always true that the lender may advertise this aircraft next to the list of aircraft that interest you. This lender may not be able to structure the best financing package for your unique situation.
Thanks to our diverse and stable financing partners, AOPA is able to find competitive rates based on a specific dollar amount or term. If the member has difficult financial affairs; They are asset based lenders – even a small niche – and we can offer borrowers many options.
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Good advice. Good prices. You can trust helpful and responsive service providers. Three good reasons to turn to AOPA when buying or refinancing an airplane. If you need people on your side and a reliable source of financing, call 800.62.PLANE (800.627.5263) or click here for a quote.
Adam Meredith, President of AOPA Aviation Company, has been lending for over 15 years; Aviation technician with small business management and customer service experience. Adam is a commercial pilot with multiple engines and instruments. Q: Hi Adam, I am the owner of a 77 B-55 Baron. Mine
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