Perhaps you own an early model TBM, Meridian, or Pilatus with a strong engine, stout airframe, and adequate interior. So, the only thing the aircraft really needs is some updated avionics.
Upgrading an avionics suite is a worthwhile but expensive investment. Doing so can cost anywhere from $70,000 to over $250,000. For many reasons, financing that expense is a better option than an upfront cash outlay. Fortunately, AOPA Aviation Finance is able to handle the financing for avionics upgrades.
Aircraft lenders will use the aircraft as collateral and can provide financing for up to 80%-85% of the post-upgrade value of the aircraft. In most cases, labor and installation cannot be financed, so there will be some out-of-pocket expenses for the upgrade. If your aircraft is currently financed, it is likely that adding to your existing loan balance will require the loan to be refinanced. It’s very common to refinance a loan in order to pay for upgrades, however, rates today are higher than they were a few years ago, so you may not want to give up your current interest rate by refinancing.
Another option is an equipment loan. With this type of loan, the aircraft is still used as collateral, but the loan can be considered secondary financing. The advantage in this case is that it doesn't require the loan used to purchase the aircraft to be refinanced. The equipment loan would be secondary to the purchase loan. You might have a million-dollar loan outstanding on your aircraft at a rate that's more favorable than current rates. Because an avionics loan will be considerably smaller, it often makes sense to keep your current loan and add get a secondary loan for the upgrades.
This option allows you to get short-term financing for the upgrade without having to refinance a larger loan balance at what would most likely be a higher interest rate today. Most aircraft lenders require that they have the first lien on the aircraft, so there aren't a lot of options for secondary financing. Fortunately, AOPA Aviation Finance has a lender that will provide secondary financing for upgrades. For AOPA members, this option is another clear advantage of membership.
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.
