Last updated: • Not financial advice
Why Pistons Are Finance-Friendly
Cessna 172, Cirrus SR22, and Mooney M20 families are widely traded with deep maintenance knowledge and parts support, which lenders appreciate. Documentation quality, avionics, and engine times strongly influence pricing and LTV.
Underwriting & LTV
- LTV: Often 70–85% depending on age, condition, and market liquidity.
- Borrower profile: Credit score, liquidity/reserves, income stability; see what lenders look for.
- Collateral: Engine/prop times, logbooks completeness, avionics, damage history.
Typical Terms and Structures
- Terms 10–15 years; amortization matching or shorter depending on age.
- Monthly payments standard; quarterly possible. Compare payment frequency.
- Balloon 10–20% used to reduce payments; model outcome in the calculator.
Examples
Cessna 172S
Training and rental demand keep liquidity strong. Clean logs, mid‑time engine, modern avionics (WAAS/ADS‑B) support better pricing.
Cirrus SR22
SR22 resale is robust; CAPS status, avionics suite (Perspective), and maintenance drive valuation. Consider fixed vs variable based on horizon.
Mooney M20
Speed and efficiency appeal; ensure maintenance records are clear. Older examples may see lower LTV; plan down payment accordingly.
Insurance & Training
Insurers may require transition training (especially SR22). Coordinate early to avoid closing delays; see insurance requirements.
Purchase Process
- Budget with the calculator; set guardrails for payment and balloon.
- Obtain term sheet; prepare documentation and arrange prebuy.
- Escrow, title, and registration through the FAA registry.
Common Pitfalls
- Over‑optimistic budgets that ignore hangar/insurance/maintenance reserves.
- Incomplete logbooks or corrosion discovered at prebuy.
- Skipping a second quote—compare two lenders or a broker.
Related Articles
External references: FAA Registry · AOPA Finance · NBAA