aopa aircraft loan calculator

Aopa Aircraft Loan Calculator - Whether you're shopping for a multi-engine for your business or a single-engine for personal travel, AOPA Aviation is here to help members find the right financing for new and used general aviation aircraft.

We know what it's like to own a plane. Whether you're shopping for a multi-engine for your business or a single-engine for personal travel, AOPA Aviation is here to help members find the right financing for new and used general aviation aircraft.

Aopa Aircraft Loan Calculator

Our friendly loan experts take the hassle out of navigating complex and sometimes hidden financing options to help you land that next piston plane quickly. Call us today at 800.627.5263 to learn more about our piston aircraft loan programs.

How Much Does It Cost To Own An Airplane? Aircraft Owner Costs Explained

The lender you linked me to was very good and I can highly recommend them. First class operation and customer service. Great experience for a first time buyer. AOPA made my dream of owning an airplane come true.

How can I get pre-approved so that I can find the right aircraft for which I have financing?

Obtaining pre-approval is the same process as approval, except for the provision of the aircraft specification sheet. You will not issue a specific sheet until a specific aircraft is found. You must provide lenders with the total loan amount, type, and model. Once pre-approved, the rate is locked in for 30 days and approval is good for 90 days.

Aviation lenders will require a minimum down payment of 15% for new aircraft from the 1960s and 20% for older aircraft.

Overview Of Aircraft Loan Structures

The loan rate and terms will be largely determined by the size of the loan. We are currently looking at loan terms of 5 to 20 years (20 years only available on loans of $75K and over) and interest rates of 4.38%-7%.

Generally, our lenders will look at multi-engine piston aircraft from the 1970s and newer. Some lenders make exceptions for older cars. The Fed is working very hard to get inflation under control, and we have recently raised interest rates significantly and consistently in an effort to slow the economy. This is obviously directly related to the cost of borrowing. Aviation is more immune to what the Fed does than any other industry.

From my perspective, I'm frankly amazed that with all the Fed's moves, we can still get lending rates in roughly the same range that we've been providing for the last 10 years. So, from that point of view, everything is not terrible news.

We've had relatively low interest rates for a while. And as such, people expect this unusual period of low interest rates to be the norm. This is not normal in the long run. Historically, where prices are currently right is actually more common. We are approaching this area, which the Fed calls the "long-run equilibrium rate." At some point, the economy will freeze. It will probably take some time, not months but years, for it to come back.

In Flight Usa May 2017 By Anne Dobbins

At the same time, there is a larger macro issue facing our industry. In other words, the production of new planes is less than 2% of the existing planes. The market loses three times as many ships in a given year to accidents, breakdowns or other causes. This problem of being increasingly constrained by supply is not new, in fact it predates the COVID pandemic, supply issues and major workforce realignments. Over the past 2 decades, only two major aircraft manufacturers have entered the market with significant success (as defined by number of units), Cirrus and Technam. Until other entrants are able to offer light aircraft at affordable prices, which AOPA is actively working to support, this supply/demand conflict will only continue.

The combination of continued interest rate hikes is why banks are aggressively enforcing any rate lock-in period they can provide. While higher interest rates also benefit them, the real problem is that the value of their money goes up, which encourages them to increase their rate lock and which affects their main source of income, net interest income.

In this economic climate, AOPA recommends that whatever interest rate you get, make sure you can accept it as the rate you're going to pay for the life of your loan. Refinancing in the short term, when interest rates may fall, is unlikely to be an option. If history is any guide, we are entering a normal phase of the economic cycle, and this phase may last 1-2 years, not 3-6 months, which means that nothing significant will happen in 2-3 years. will not happen, the rates may decrease. .

Bottom line: prices rise, which drives the urgency to do something. People may not be able to get the planes they want because they lose deals with cash buyers. The best thing you can do to protect your locked-in rate, your finances and pre-approvals, even targeted fleets, is to get everything in order before you approach R for a loan. This means getting your financial and legal house in order, along with all the paperwork. AOPA is here to guide you before you fly.

In Flight Usa October 2021 By Anne Dobbins

Great advice. great value Helpful and responsive representatives you can count on. Three good reasons to turn to AOPA when you're shopping for an airplane or refinancing. If you need a reliable source of financing on your side, just call 800.62.PLANE (800.627.5263) or click here to request a quote.

AOPA Aviation Company President Adam Meredith is an aviation professional with over 15 years of experience in lending, small business management and customer service. Adam is a commercial pilot with multi-engine and instrument ratings.

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