Airplane Loans?

[jimboe]

Hi,

I want to get a loan to buy my partner's share of our Champ, uh...I mean Taylorcraft, and wondered if any of you can recommend a loan company with reasonable interest rates (better than the AOPA/Bank of America 12.5% rate).

Thanks,
Jim

P.S. I learned to fly in a T-Craft.

P.P.S. How come the spell checker thinks the word "Taylorcraft" is mis-spelled? One would think it would have accepted it by now.

[KewFlyer]

Re: Airplane Loans?

Jim:
You may want to explore a "Home Equity Loan". Rates are lower than a personal loan.
That's assuming that you still have equity left after the housing prices drop !!.
Good luck
Ralph

[Steve Green]

Re: Airplane Loans?

I used my credit union for my last one. They called it a "recreational vehicle" loan, since they don't do aircraft loans.

[Hank Jarrett]

Re: Airplane Loans?

I bought one of my planes and used my car title as the collateral. Just ask a credit union (better deals than a bank) what you can put up to get the best deal. For some reason they don't seem to want airplanes as collateral, which is kind of funny since the airplanes seem to keep or improve in value much faster than anything else they will accept. Whatever you use will have to have "hull" or home insurance to keep them happy.
Hank

They are just used to dealing with cars and the lay person thinks airplanes are falling out of the sky on a daily basis.

[mulwyk]

Re: Airplane Loans?

You're right , Hank! When you see a small plane in a movie, by the end of the show the plane always explodes in flames. Our local airport board (mostly real estate developers) requires elaborate sprinkler systems in all hangars for just that reason. And no sensible banker is going to invest in an asset that, everyone knows, is going to explode at any minute.

[Larry Lyons]

Re: Airplane Loans?

They are just used to dealing with cars and the lay person thinks airplanes are falling out of the sky on a daily basis.

They do! Thank God everytime I have been up in a plane if finally fell out of the sky! Except for when I got in a hurry and jumped out of it first. Including one C-47on fire! I'd really hate to get stuck up there. Larry

PS: One thing about my old age; it has plenty of beer drinking stories to while away the time.

[swoeric]

Re: Airplane Loans?

Hank has it right. As long as there is some collateral even the portion of the plane you currently own you will be able to obtain a loan. if you use the airplane as collateral insurance will be required. the cost of insurance is probably prohibitive in this case. You can use another car title, a very cheap life insurance policy (sometimes very cheap for term), or if you have good credit ask for a signature loan. many times they will require an appraisal and you to own 20% of the asset.


just remember where there is a will there is a way.

[jimboe]

Re: Airplane Loans?

Thanks for the feedback, guys.

We just re-financed the house and my wife doesn't like the idea of a new 2nd mortgage, although that would be the best deal.

One thing that amazes me is banks are only paying 1% interest on CDs. I would have thought they would be happy to loan money at 6%, but the best I've found is 8. I'll try to work that one out.

Jim

[Carrieve]

Re: Airplane Loans?

I am in the same boat (whoops plane). I am trying to buy my daughter's former Pitts and the banks look at my like I am crazy. The got so burned on recreation stuff they won't touch it. I am NOT giving up my Tcraft just for the record.

[Rick Hadley]

Re: Airplane Loans?

I guess there are some advantages to living in a small town with a small independent bank and a banker you've known for over 20 years. It took me all of about 5 minutes to arrange a 7% loan for my plane.

[NY86]

Re: Airplane Loans?

I've used Dorr Aviation twice , but it was quite a few years back. Might be worth giving them a call, though.

[PhilP]

Look no further

Best place for small aircraft loans is www.airloan.com through red river state bank. They are extremely friendly, flexible, contactable and don't look down their noses at us small, antique airplane drivers.

GREAT Bank...