I'm Looking to Upgrade. What Rate is Normal for Me?

Adam answers in November's edition. 
AOPA Aviation Finance

Question: I have a 79 Piper Turbo Arrow IV that I own outright and may be looking to upgrade to a Malibu in the next 2-3 years.  I know there is no way to predict the future and there are a lot of factors that go into the computation, but with a $100,000 or $150,000 down payment, good credit, and $90,000/yr income, roughly what sort of interest rate would we be looking at for a $400-$450,000 aircraft if I financed it over 10 or 20 years?  I found your payment calculator on the AOPA Finance website but did not know what interest rates were normal for customers like me.

The aircraft would be used for leisure only and would be hangared 24/7.  I have no violations, incidents or accidents and I fly professionally.

Answer: Alexander, thanks for the question. In today’s current environment rates typically range from 3.75% - 4.5% for a personal use aircraft. There are a number of factors that would drive rate, however, the biggest 2 would be: 1. Liquidity (how many months’ worth of non-retirement cash/marketable securities you have) and 2. Debt to Income Ratio (total annual debt payments plus living/aircraft expenses divided by total income).

The best rates are for strong applicants having more than 18 months liquidity and less than 35% debt to income. I know you mentioned just being in the planning stages at this point, but please feel free to call us, 800.627.5263, and we can discuss your options in more detail. Thank you for reaching out.

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.

Adam Meredith
Adam Meredith
President of AOPA Aviation Finance Company
Adam Meredith, the longtime president of AOPA Aviation Finance Co., died after a long battle with cancer in December 2023. He is remembered for his passion for helping fellow pilots, leading a team devoted to putting flight training and aircraft ownership within everyone’s reach.

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