Can You Finance an Airplane Purchase to Include Overhaul or Avionics Refurb?

The question often posed by AOPA members is, when financing an aircraft, can you include an engine overhaul and/or a new avionics suite?
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It’s possible to do one or both, as long as the total value of either, plus the value of the airplane itself doesn’t exceed the prescribed loan-to-value established by the lender. Typically, a loan is issued at between 80% to 85% of the value of the airplane.


Similarly, the question has been asked if it’s possible to refinance an existing loan for the same reasons. You can, but it all starts with a conversation with us or your lender. Be advised, the same application process applies as with the initial application. The reason being, this is an entirely new transaction and the lender will have to confirm your current financial situation just as they did when you obtained the original loan.


Ultimately, how much equity exists in the aircraft helps determine how much you’ll pay out of pocket and how much the lender will finance for the avionics upgrade and/or overhaul. Greater than 50% equity and the chances of an 80/20 deal increase. Below that, not so much.


When it comes to avionics, the lender is only going to lend 80% of the value of the avionics upgrade. You will be on the hook for the remaining 20% and the labor. For example, the lender may cover $80,000 of an avionics suite valued at $100,000, leaving you to come up with the remaining $20,000 as well as any labor charges. Not true with an overhaul, where a lender will usually cover both materials and labor.


Great advice. Great rates. Helpful and responsive reps you can trust. Three good reasons to turn to AOPA Aviation Finance when you are buying or refinancing an airplane. If you need a dependable source of financing with people who are on your side, just call 800.62.PLANE (800.627.5263), 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 Co

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