Q: I am considering buying a plane in order to finish up my Instrument Rating training. For an approximately $80,000 Cessna 172, I thinking of putting down $25,000 as down payment. What is a typical interest rate for the balance $55,000 for a 15 year period?
A: Hello Mr. Kumar and thank you for reaching out. Based on a $55,000 loan amount, you could expect rates between 5.24% and 6%. Over a 15 year term this equates to a monthly payment of roughly $442. This payment assumes 740+ credit score and personal usage.
If this is your first time financing an aircraft, I would recommend that you check our resource page for First Time Buyers. Here you will find information about preparing your financials, applying for the approval, negotiating the sale and closing on the loan.
In general, for aircraft with a purchase price of $150k or below a greater down payment will not affect the rate. When looking at more complex aircraft, or aircraft with a sales price of $150k or above, a higher down payment to reduce the LTV (loan to value) will have an effect on the interest rate. Another option to reduce the rate on aircraft with a purchase price of $150k plus, would be to shorten the loan term and amortization
Good luck with your instrument training and give us call so we can help you get pre-approved.
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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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