Financing an Avionics Upgrade: Loans for Your Panel

Upgrading your aircraft's avionics is one of the best investments you can make. A modern panel enhances safety, improves capability, and increases the aircraft's value. But with the cost of a full glass cockpit often exceeding $50,000 or more, paying out-of-pocket isn't always feasible. Fortunately, you have excellent options for avionics financing.

How to Pay for a Major Avionics Upgrade

There are two primary pathways to financing a new panel:

Option 1: Cash-Out Refinance

If you have equity in your aircraft, a cash-out refinance is often the best choice. You take out a new, larger loan that pays off your existing loan and also provides you with the cash needed to cover the avionics upgrade. This is streamlined because it keeps you with a single monthly payment.

Option 2: Separate Equipment Loan

If you own your aircraft outright or don't want to touch your existing loan, you can take out a separate, secured loan just for the equipment. The new avionics serve as collateral for this smaller loan. This can be a fast and simple way to fund an upgrade without disturbing your primary aircraft financing.

What Lenders Require for an Avionics Loan

For an avionics loan, lenders will want to see:

• A Detailed Quote: A formal quote from a reputable avionics shop detailing the equipment to be installed and the labor costs.
• A Strong Financial Profile: As with any loan, your credit and financial standing are key.
• Information on the Aircraft: The lender needs to know the asset that the new equipment will be a part of.

Will an Upgrade Increase My Aircraft's Value?

Generally, yes. While you may not recoup 100% of the cost, a modern, ADS-B compliant glass panel makes an aircraft significantly more attractive on the resale market compared to an older, steam-gauge equivalent. It broadens the pool of potential buyers and can dramatically speed up the sales process, adding significant intangible value.