Go Back  Airline Pilot Central Forums > Pilot Lounge > Money Talk
All you aircraft owners (aircraft financing) >

All you aircraft owners (aircraft financing)

Notices
Money Talk Your hard-earned money

All you aircraft owners (aircraft financing)

Old 07-21-2010, 02:02 PM
  #1  
Gets Weekends Off
Thread Starter
 
Joined APC: Nov 2009
Position: still here...
Posts: 226
Default All you aircraft owners (aircraft financing)

Well folks I have myself a predicament. I would very much like to purchase a C172 for pleasure flying and time building. I have one picked out in Florida I would like to buy but I'm not sure how to finance it. Is there anyone you guys know that would finance a first time buyer that makes 20,000 a year? I am having trouble finding a place that will allow me to. I am a member of AOPA and applied for their financing but they haven't contacted me. The website says they will have someone contact you in 24 hours but 6 days and 3 apps later I have heard not a peep. I am at a loss. Do I have to sit on my a$$ and not fly for two years to earn and save so I can pay cash or is their another option? I haven't flown in a year due to ridiculous renting costs and I can't stand the thought of not flying for even longer. Please help me.



By the way, mods if this belongs in the money section you can move it. I wasn't sure since this was more of a GA thing.

Thanks!
mosteam3985 is offline  
Old 07-21-2010, 03:08 PM
  #2  
Gets Weekends Off
 
Joined APC: May 2010
Posts: 342
Default

I am not an aircraft owner, but do have some current knowledge...

AOPA's affiliated lender is Bank of America. If you qualify for the loan, their rates are competitve: 6.75%. If you're a first-time aircraft owner, they'll want 30% down. AOPA is a good resource for you, but BOA are not "airplane" people.

The folks at Dorr Aviation Credit are "airplane" people. They are much easier to talk to and their rates are almost as good. They just offered me 6.85% with just 20% down.

Another good airplane finance co. is Zook Aviation.

YMMV. Good luck with your plans, and, yes, putting aside every penny you can for awhile is the best place to start. Hope this helps.
EasternATC is offline  
Old 07-21-2010, 04:35 PM
  #3  
Self Employed.
 
SkyHigh's Avatar
 
Joined APC: May 2005
Position: Corporate Pilot
Posts: 7,119
Default Amortization

Originally Posted by EasternATC View Post
I am not an aircraft owner, but do have some current knowledge...

AOPA's affiliated lender is Bank of America. If you qualify for the loan, their rates are competitve: 6.75%. If you're a first-time aircraft owner, they'll want 30% down. AOPA is a good resource for you, but BOA are not "airplane" people.

The folks at Dorr Aviation Credit are "airplane" people. They are much easier to talk to and their rates are almost as good. They just offered me 6.85% with just 20% down.

Another good airplane finance co. is Zook Aviation.

YMMV. Good luck with your plans, and, yes, putting aside every penny you can for awhile is the best place to start. Hope this helps.
How far out will they amortize the loan? 5, 10, or 20 years?

Skyhigh
SkyHigh is offline  
Old 07-21-2010, 05:17 PM
  #4  
Gets Weekends Off
 
Joined APC: May 2010
Posts: 342
Default

Originally Posted by SkyHigh View Post
How far out will they amortize the loan? 5, 10, or 20 years?

Skyhigh
If you're looking at a well-known make and model that the bank can accurrately appraise, they'll go 20 years. I've been asking about less-common types, Stearman for example, that they won't go past about 10 years on, at 8% to boot. Zook or NAFCO seem to be the best places for the less-common types.

I asked BOA about financing for a 1982 Great Lakes and they said, "A what? NFW!"
EasternATC is offline  
Old 07-21-2010, 05:55 PM
  #5  
Gets Weekends Off
Thread Starter
 
Joined APC: Nov 2009
Position: still here...
Posts: 226
Default

Hey Skyhigh! I'm glad you chimed in as I know you are a recent Cessna buyer. Any tips? How are you liking being an owner?
mosteam3985 is offline  
Old 07-21-2010, 07:59 PM
  #6  
Gets Weekends Off
 
TonyWilliams's Avatar
 
Joined APC: Jan 2007
Position: Self employed
Posts: 3,048
Default

Originally Posted by mosteam3985 View Post
I haven't flown in a year due to ridiculous renting costs and I can't stand the thought of not flying for even longer. Please help me.

When you add it all up, you'll find that owning may be just as expensive... if not more so. My first plane was a 1600 hour TT Cessna 172M. Paid $19,000 for it (this was over 20 years ago). Sold it a few years later for $25,000, I think.

Engine overall cost about $10,000 ;-)
TonyWilliams is offline  
Old 07-21-2010, 11:26 PM
  #7  
Gets Weekends Off
 
Slice's Avatar
 
Joined APC: Jan 2006
Position: Spartan
Posts: 3,652
Default

Maybe it's just me but it doesn't seem wise financially for someone making only 20K/year to be buying a plane. If something major breaks, you won't be able to afford to get it fixed. Try and find a local flying club.
Slice is offline  
Old 07-22-2010, 09:37 AM
  #8  
Gets Weekends Off
 
TonyWilliams's Avatar
 
Joined APC: Jan 2007
Position: Self employed
Posts: 3,048
Default

Originally Posted by Slice View Post
Maybe it's just me but it doesn't seem wise financially for someone making only 20K/year to be buying a plane..

I agree with you. Buying a plane because you're too broke to rent is a recipe for financial disaster. I've been involved with 4 different airplanes (two singles, two twins)... they all cost WAY more than I could have ever estimated.

I had a job that paid six figures when I was buying them.
TonyWilliams is offline  
Old 07-27-2010, 11:26 AM
  #9  
Line Holder
 
Joined APC: Sep 2005
Position: seated, but sometimes I get up and walk around
Posts: 96
Default

I used BOA for an aircraft loan and will never use them again. We agreed on a rate and term, then when they sent the paperwork the day before closing, the terms were different than we agreed to. When I called them on it they said, in effect, "take it or leave it".... Big learning curve there. When you get the terms, get them in writing, don't accept the loan officer and their manager both agreeing to the same terms as set in stone.... I have talked with others that have used them and they have run into the same problem. They don't do it to everyone and I don't know if any other bank does this, but this was my unfortunate experience...

Another suggestion is to get an aviation attorney when you purchase an airplane. I am not a big advocate of attorneys, but a good one will see all the potential legal pitfalls that you may have never thought of....

Forgot to add, this was a few years ago, maybe they have gotten better since then....

Last edited by aseweepay; 07-27-2010 at 11:38 AM.
aseweepay is offline  
Old 07-27-2010, 11:42 AM
  #10  
Gets Weekends Off
 
Joined APC: Jul 2010
Position: BE-20, LR35
Posts: 266
Default

I have a 2009 Diamond DA40 and have been extremely happy with the purchase. Diamond support is great over the phone and is always more than happy to assist my mechanic with any questions he has (he usually works on helicopters, he helps out on my plane to help me out).

My aircraft before was a Piper Seminole and that thing was a money pit. Getting rid of that thing was the best financial move of my life! I can't imagine ATP with their fleet of Seminoles.....must be an absolute nightmare for their maintenance crews.
Fr8Master is offline  
Related Topics
Thread
Thread Starter
Forum
Replies
Last Post
JetJock16
Regional
278
03-10-2017 02:03 PM
hockeypilot44
Regional
91
09-06-2009 03:04 PM
Bucking Bar
Major
143
09-05-2009 04:39 PM
AirbornPegasus
Regional
8
10-30-2008 12:04 PM
Splanky
Regional
11
09-17-2008 02:52 PM

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On


Thread Tools
Search this Thread
Your Privacy Choices