Updated . Educational only — not tax, legal, or lending advice. Confirm figures with your CPA, the state revenue department, and a lender before you close.
APR Is One Number. The Note Is the Offer.
Compare offers on dollars and on the promises, not on the coupon in the email subject. How to type two offers into the calculator is on the offer-comparison inputs. This page is what that math leaves out.
Three stacks
- APR and amount financed. A lower APR on a larger amount, because fees were rolled in, can cost more. Put both amounts into the calculator.
- Term and balloon. The pretty payment might be a 20-year note with a balloon. Price the balloon as cash you owe, not as a detail.
- Clauses. Prepayment fees, assumption bans, cross-default if this is not your only aircraft, maintenance covenants, and whether you can base the aircraft out of state. See covenants.
A quarter-point of rate is real money on a large note and noise on a small piston once you add a second appraisal and a month of delay. Ask who is paid on the file, broker or lender. That fee belongs in the comparison. Broker versus lender.
Questions buyers actually ask
Should I take the lowest payment?
Only if the term, balloon, and fees are honest. The lowest payment is often the most interest.
Are verbal quotes comparable?
No. Compare commitment letters that name the lender, the index if any, the fees, and the expiration.