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Purchasing an Aircraft during volatile market Purchasing an Aircraft with Market Volatility

Adam Answers COVID-19 Edition - Part 1

Purchasing an aircraft can be a challenging process under normal circumstances, but can be even more difficult to navigate during market volatility. In Part 1 of this special COVID-19 Adam Answers series, President of AOPA Finance Adam Meredith will address commonly asked questions on aircraft ownership during this difficult time. 

AOPA Aviation Finance

Question: With the current market volatility, do you find that lenders are tightening or loosening their credit requirements?

Answer: We have definitely seen some that are tightening credit. Specifically, some lenders are requesting copies of bank/investment statements that are within the last couple of days (vs. 30 days, under regular times). Given stock market volatility this isn’t too surprising. Also, we’ve seen some lenders that are being more cautious lending to individuals with direct financial exposure to COVID 19 (i.e. service industry companies not deemed essential).

Question: What advice are you giving to members who were currently looking to purchase before all of the shelter in place orders? Should we continue our search or place our search on hold until all of this blows over?

If you’re personally at high risk (financially or otherwise) to COVID 19, you’d be well advised to pause the purchase process. However, for everyone else, I’d encourage you to keep looking and work with sellers to create a plan for how to push through the closing process. For advice on guidance with shelter in place requirements, reach out to our trusted legal staff if you’re a legal services plan participant. If not, reach out to our Pilot Information Center to get the latest guidance.

Have questions for Adam? He is happy to answer them. Submit your questions here. 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.

                                           Part 2: What type of rate should I expect right now? 

Adam Meredith

Adam Meredith

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.
Topics: AOPA Aviation Finance Company, AOPA Products and Services, Ownership

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