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[guns68]

OK,
As I mentioned before I'm trying to buy a BC12-D. I'm working with the owner to settle on a price. The bank called and said that they require an appraisal on the plane before they will loan me the money, I understand why although I was not quite ready for the 450.00 price tag. Oh well, I know if your going to have a dance you got to pay the band. Anyway my real question is this, will the appraisal work as a pre buy inspection as well or do I need both? And if so what can I expect to pay for one (in Alaska). Any advice or suggestions on any part of this drama called buying an airplane I should know please feel free to tell me.
Thank you so very much

[Hank Jarrett]

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I ran into the same problem when I wanted to buy my second Taylorcraft. It was easier (and CHEAPER) to get the loan on my car. Banks know how to make loans on cars and all they want is something for collateral (this assumes you OWN your car and don't already have a loan on it, if so, I would go for a small second on the house and just pay it off at the rate the car would have used).
Hank

[flyguy]

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Yep, if possible, it is always easier to get the loan against something other than the aircraft. I don't know who banks use to appraise aircraft, but perhaps you could work out something with them to use an individual who serves both your purposes.
How about looking for someone who specializes in financing aircraft? Check online?
Darryl

[VictorBravo]

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SIMPLE !

1. Compile a list of all recent asking prices on T-crafts from as many different sources as possible.

2. Go to several tax assessor offices and ask them what range they value a flying T-craft.

3. Get a range of insured hull values from aircraft insurance companies like Avemco.

4. Get the NADA "Aircraft Blue Book" value range on the T-craft.

5. Get a bunch of photos if the particular airplane you are looking at, showing condition and completeness.

If necessary, you can compile a list of approx. assessed values, asking prices, insured values, etc.

Put this all into one document folder, hold it a foot above the desk, let go, and let it thump down in front of the banker. Also let them know (politely) that there are X number of aircraft financing and loan companies that specifically deal with aircraft, and on small inexpensive airplanes like this they don't make someone spend two months' worth of hangar rent or fuel on an appraisal.

[Hank Jarrett]

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Bill, you are always SOOOOO subtle.
Hank
My car was less than 3 years old and paid off. It was easier than arguing with someone who was completely ignorant.

[jim cooper]

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Everyone is correct. Small banks, (even big ones) don't know anything about aircraft. They WILL usually, if your credit is good, give you a personal loan provided you have home equity, etc. Then, as mentioned before, there are the banks, as in Trade a Plane, that specialize in aircraft. I would copy off Barnstormers, a few that come close to YOUR purchase and show them this info. I recently purchased a 46 BC12D, completley rebuilt in 2008, engine done by same builder. Stits process, wheel pants, sensich metal prop, 3 colors, red ,navy blue ,creme, new interior, panel redone, all instruments in good order.no elec. excellent glass, good tires, good tailwheel, slick mags. 24,500.00.(65HP) hope this helps as a guide...P.S.SELLER should do complete annual with agreed upon AI, preferably NOT his choice. if he won't do this, I would let him keep it.If aircraft is as good as he says it is, Annual should be 250-300 bucks. Hope others get in on this. I'm no expert! (fellow who did mine, did two others, used to own a body shop, specialized in Cadillac and Mercedes. It looks like new or better. Included were pictures of each step of rebuild and excellent logs.) JC

[jdlowrey]

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Most of the banks up here have had experience in lending utilizing aircraft as collateral. Banks like AlaskaUSA even advertise airplane loans. The appraisals that I have seen are prepared by mechanics on their letterhead listing the type of aircraft and what mods or features it has and then listing a value. This is backed up by photocopies of ads from Trade-a-plane and the like to support the price listed. I am no expert by any means but $450 for this service seems high. I would think your bank loan officer should be able to tell you what an acceptable appraisal consists of.

[guns68]

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Thanks everyone for all the comments. I'm looking at other financial institutions and I'll see who gives me the best deal. Jeff, I've been offered a loan from AlaskaUSA and they are the ones insisting on the appraisal, and that it's done by a certified appraiser. I have been working through the local branch but I may give the loan officer at the main office a call directly, or go with someone else.
I am insisting on the annual. I did not even think on using someone other than his IA, thanks for the heads up.
Well wish me luck as this saga continues and I'm open to any and all advice.

[S2D]

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I dealt with a small bank here for years buying airplanes. Very easy to work with. I never even had to hull insure them, liability only. Do what VictorBravo says.
Only problem I ran into was getting them to release the lien. They always seem to forget that step until you remind them.
The extra $450 is just too much.