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What Determines the Length of a Loan?

Adam answers in May's edition. 
AOPA Aviation Finance

Question: What determines the length of loan say between 15 and 20 years. I’m looking at a 1997 aircraft to finance 45k. What term might I expect to get?

Answer: Generally speaking the amount financed,  usage and age are what limits length of term. In this case age is not the issue, however, loan amount at $45k would likely limit you to 15 years. The reason being, after 3 years on this amortization schedule you will have only paid the loan by less than $4k. This doesn’t leave much room for surprise expenses like an engine overhaul and therefore benefits neither the owner nor the lender.

Question: Can I get a loan to finish off a project aircraft? I would need less than 20k to purchase the avionics. Everything else (engine and Airframe) are done. I could get a conditional Airworthiness inspection if needed. Thanks.

Answer: Thanks for the question. It really would depend on the specific aircraft and how much work (time) it will take to get it airworthy. We’d be happy to discuss further, please contact us directly so we can review your specific situation.

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, 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, Ownership, Financing

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