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.
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