Question: Does the airplane itself, say a 1974 Mooney M20C, serve as collateral for a loan?
Answer: Yes, lenders will use the aircraft as collateral to secure the loan similar to that of an auto or home loan. Aircraft lenders will also take your cash flow into account. The loan amount you are approved for will be based on the value of the aircraft or its purchase price, whichever is less. We can provide a valuation for you at no cost, just call and speak to one of our regional account executives at 800.627.5362. If you want to learn more about the ins and outs of aircraft loans, I would suggest this article: Why does an aircraft loan take longer than car loan?
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Great rates. Great terms. Helpful and responsive reps. Three good reasons to turn to AOPA Aviation Finance when you are buying an airplane. If you need a dependable source of financing with people who are on your side, just call 800.62.PLANE (75263) or click here to request a quote.
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President of AOPA Aviation Finance Company
Adam Meredith, President of AOPA Aviation Finance Company, is an aircraft finance professional with more than 15 years lending, small business management and customer service experience. Adam is a commercial pilot with multi-engine and instrument ratings.