Is this something I could get a quote on as an AOPA member? Do you arrange "cash-out" financing?
Answer: There are two challenges for this particular scenario: 1. The time since cash purchase and 2. The usage.
In general, lenders are able to consider cash-out financing requests if the purchase was completed in the last 30 days. Some are willing to go up to 90 days max. Beyond that, cash-out financing throws up a red flag to lenders. They will question why cash is needed all of a sudden so long after the original purchase. Lenders want to steer clear of scenarios where borrowers are needing additional cash to support a struggling business. Because of this, lenders set limits on how long after a cash purchase they will consider cash-out financing.
The second challenge is due to the flight school usage. Many lenders do not offer financing on aircraft that are used in a flight training environment. Those that do prefer to see lower time aircraft with engines mid-time or less. This is due to the excess wear and faster depreciation on aircraft used in flight schools compared to aircraft flown for pleasure or business.
Unfortunately, AOPA Aviation Finance would not have any lending options for this scenario at this time, but we would be happy to discuss in further detail if you would like to give us a call at 800.627.5263.
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