Plane financing

4

4RNB

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4RNB
How does it work? I friend said he tried to finance, someone wanted to get 3 yrs of taxes, all kinds of paperwork. How involved is it and with whom is it easier? We can pay cash but prefer to not cash out of investments just yet.

Thank you.
 
We worked with Dorr Aviation Credit Corp on our last aircraft purchase in July. Between airplane and real estate transactions, it was one of the smoothest Processes I’ve been a part of. Ask for Pat, he was great.

https://www.dorraviation.com/
 
I did mine through AOPA. It was straightforward, but it's more like getting a mortgage than getting a car loan. It feels like the process is one size fits all, regardless of whether you are a single engine weekend warrior or if you are financing a plane for a business.
 
They mostly want to know you have the income and income stability to make the debt servicepayments. Hence the tax returns; they are one means of confirming income and trends.
 
I did mine with the then MBNA (AOPA deal) years ago. It was very easy to set up. They'd write a loan on anything they could get a blue book value on. It all fell apart because their servicing after the purchase was incompetent.
 
flyingron said:
I did mine with the then MBNA (AOPA deal) years ago. It was very easy to set up. They'd write a loan on anything they could get a blue book value on. It all fell apart because their servicing after the purchase was incompetent.
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Same experience with AOPA. I had to provide three years of data. I was told the loan was going to be these terms and when I received the loan docs it was completely different that what we discussed. So cancelled the whole loan option all together.

I would look at USA financial.


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Or consider a personal loan, rather than an aircraft loan (if financially feasible).
 
Depending on your situation I’d look at a home equity loan, maybe a 401k loan, depending what amount one is looking for.
 
I recently had a good experience with Scope Aircraft Finance. 3 years worth of tax returns, mortgage documents, and documentation of any other investments you possess is pretty standard.
 
I used Pilot bank. I think they are out of Tampa. They were easy to deal with. similar or less to getting a mortgage....a lot less signatures though.
 
What term lengths and rates are you guys getting? I’m shopping now. Thanks
 
Roadracin said:
What term lengths and rates are you guys getting? I’m shopping now. Thanks
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Was offered 4% from some bank AOPA used that required me to re-register the plane to a non LLC. It was a 20 year loan financed for 10 years at 4% with a balloon payment at 10 years and crazy terms after then. I said no thanks.

I was favorable to:

https://www.usaircraftfinance.com/

They were pretty fair but the rates were over 4%. My plane is paid off. I was looking to finance upgrades. We couldn’t agree on the value before and after the upgrades so I passed and will just save money. If I were buying the airplane as the first time, I would’ve gone with them. If I sell my plane, I plan to finance the next one with them and hold onto cash.


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