I'm Purchasing a Cirrus SR20. What Interest Rates Should I Expect?
July 31, 2020
By Adam Meredith
Adam answers in August's edition.
Question: I am planning to purchase a Cirrus SR 20 next month for $290k. I’m planning to put 40% down so I can borrow less. What type of interest rates should I expect?
Answer: I certainly understand your desire to borrow less, sometimes however, when you borrow less it can cost you more in rate. For example, when borrowing less than $150k most lenders have increased interest rates to make up for lesser amounts being borrowed. However, in this case, assuming a $290k purchase amount and 60% financed, borrowing more than the $174k loan your seeking won’t get you better options. We are seeing rates as low as 3.75%.
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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.