NAFA member, Adam Meredith, President of AOPA Aviation Finance Company, answers your questions about financing aircraft in Alaska and financing an aircraft that includes avionic upgrades.
Q: I am exploring financing options for an aircraft to be based in Alaska. I recall around 8 years ago, AOPA finance would not do business in Alaska. Does that remain the case?
A: While most lenders stick to the contiguous US, we do have a lender that can offer aircraft financing in Alaska. Their financing options will depend on the aircraft age, make and model, as well as the aircraft usage. Call us today and we can give you more specifics.
Q: Is it possible to finance an aircraft that includes avionics upgrades? For example, $60k for the aircraft and $30k for the avionics that would be installed in the aircraft? I am in the initial stages and would like the answer to this before I begin my search
A: Yes lenders are often willing to include additional funds for upgrades. Our lenders will finance up to 85% of the total upgraded value with distributions split between the seller and the avionics shop. Please keep in mind that while it may cost $30,000 for the upgrades, only about 50%-70% of the equipment cost is added to the total value. Labor and installation costs are not included in the financing. When you call and speak to our account executives, they can help prepare a valuation that will help determine the value of the airplane with the upgraded avionics.
This article was originally published by AOPA Aviation Finance Company on July 8, 2019.
