Down payment, interest and term

[Jason608]

Hi
I have been researching loan options for a C182 $175k (or SR22 and similar). I assume the requirements are a minimum 20% downpayment, max 20 year note at best 6%. What are you guys seeing for loan options?

 

[OkieAviator]

6% seems high for long term financing..

 

[chartbundle]

I originally was approved for 4.85% in February for a loan amount of over $100k but by the time it all finished my rate was up to 5.125% about 2 weeks ago. (20 year, 20% down)

 

[JCranford]

C182 or SR22?? Not even on the same planet. Might want to narrow the field a bit.

At any rate, last quote I got was 15% down, 5.6%, 15 years. Loan was for significantly less than your talking.

 

[paflyer]

Wings Financial
https://www.wingsfinancial.com/loanrates

New & Used Aircraft‡ (Extended Financing available - Limitations apply)
• Maximum term: 84 months, 3.74%

‡Rate applies to loans up to $100,000; ask about rate for larger loans

 

[bflynn]

Rates go up as the risk rises - longer terms and lower amounts are riskier. At 20 years and the lower end of the scale, there isn't all that much difference between rates. For example, between 5% and 5.5%, I calculated the payment is $37 higher - $915 vs $952. At 6%, it's $990.

Obviously you'd like it lower, it means you can afford another flight hour every month. It's not nothing, but don't twist yourself in knots over the rate.

 

[Jason608]

So for budgeting, it looks like 15% - 20% down, 15-20 year term and 5%-6% is a good place to start for shopping.
Thanks for the comments!

 

[Lachlan]

Or just buy what you can afford to purchase with cash, because, let's face it, airplanes will end up costing you lots of money yearly and when anything major breaks. (And it will.)

Then again, fly tandem two-sweaters with fabric skin and tail wheels and they're cheaper to own and operate than a compact commuter car. I would choose rags and tailwheels every time over plastic and turbo, but that's because of how and why I want to fly. Some people need to go fast in bad weather and need fancy airplanes in order to do it. Buy what you think is best and fly the hell out of it!