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Do you give loans for engine overhauls?

Adam answers in March's edition. 
AOPA Aviation Finance

Question: My Piper Cherokee had a prop strike (It wasn't me) requiring a teardown for which the insurance company will pay. However the teardown revealed cracks in all four cylinders and corrosion in the crankshaft, none of which was caused by the prop strike and so is not covered by the insurance. The best option now is to have an engine overhaul and I would have to pay the excess over what the insurance pays. Do you give loans for such situations?

Answer: Assuming you don’t have a loan there should be plenty of value in the aircraft to pay for the overhaul with up to 100% financing. If you have a loan on the aircraft the answer is “it depends.” Specifically, on how much equity you have and how much value the overhaul will add to the current value. As a rule of thumb you should be able to finance up to 85% of the combined value (this includes the refinancing any existing loan).  Feel free to give us a call so we can discuss your situation and options in more detail.

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.

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