Question: What do you need to get started in financing? I am going spend around 150k-200k, and want to know the next steps?
Answer: If you are salaried the process is simple, you will need to complete an application and supply your last two years’ tax returns, last two years W2s, a current pay stub, and photo ID. If you have a specific plane selected, you will also need to provide an aircraft spec sheet. Otherwise, for pre-approvals, you will need to know the make, model and approximate year aircraft you are looking to purchase.
In addition, if you are self-employed, you will need to provide business financials; last two years’ business tax returns.
We have a number of articles about aircraft financing on our website, www.aopafinance.org, including a quick resource for first-time buyers. Please check it out and call one of our regional account executives at 800.62.PLANE to speak with someone in more detail.
Question: Is there financing available for building a new experimental airplane?
Answer: Yes, we have multiple options for financing aircraft kits. This type of financing typically has higher interest rates and shorter terms until the aircraft is completed. However, once finished the lenders can refinance into a more traditional type aircraft loan product with longer terms and lower rates. For factory-assisted, quick-build programs, there are several options as lenders approach these similar to other experimental aircraft. Please feel free to reach out to us if you have specific questions about an airplane kit or want to know more about the loan products we offer.
Question: Does your financing company take care of registration deals with the FAA?
Answer: AOPA Aviation Finance does not handle the FAA filing in-house. Most lenders prefer the use of a third party escrow company based in Oklahoma City to handle the transaction.The escrow company will not only handle the transfer of funds between the bank and seller, but will also file all the necessary documentation including the Bill of Sale, Registration Application, and lender's security agreement at the time of closing. AOPA is strategic partners with Aero-Space Reports. They are our preferred escrow company and they offer discounts to AOPA members, just let them know you are a member.
Question: I'm new to flying, and absolutely love it. How do I go about getting financing to buy a plane? Thanks!
Answer: I would highly recommend that you talk to a financing professional early on in the process to set expectations for rates/terms and assistance in budgeting. If you are beginning the search we recommend that you get preapproved while you are shopping. Many of our lenders will provide 60-90 day pre-approvals and the rate will be locked for 30 days, similar to a home loan. Once you complete an application, it can take 1-2 business days for the approval and then once you have an aircraft selected another 5 business days to close the loan. Many first time buyers are surprised by the complexity of aircraft financing, however if you start the process early and get preapproved, it will allow you to focus on finding the right airplane.Have questions for Adam? He is happy to answer them. Submit your questions here.