Airplane Repo The TV Series

I saw it last night, I watched the Cub repo, when the faulty Piper fuel gauge (compass)read East they had to make an emergency landing!!! :yikes::yikes: I almost threw up! I did see part of the first yatch repo, looked like a 60+ foot sportfishing boat, lured the poor guy off the boat and into a bar with a pretty blond woman! :yikes: You can tell it was staged, he would have shown her the entire boat and mixed her a drink on board!;)

Twin_Flyer said:
We I guess the business must be slowing down.... This week they repo'ed a Cub for a friend and two, that right, two yachts for the banks....:eek: Hey maybe there's a name change coming "Yacht Repo the TV series.:no: Dang 1%ers:wink2:
Click to expand...
 
If you haven't noticed, lending practices have changed drastically in the last 6 years, from telling the bank you need a loan and them depositing the money in your account before you get the papers signed. To we'll have to take it up with the loan committee and the most we want to loan is 50% on real estate! Actually, they don't want to loan anything on real estate, feds won't let them. :mad2:
I would say 95-99% of airplane repo's are voluntary surrenders, just call the bank tell them it's at ABC FBO, logbooks are in the back, key is on the board.

txflyer said:
Who are these people who buy business jets and then don't pay for them?

That's insanity.

Who credited them in the first place to buy? How did they get financing if they can't pay? And aren't those big loans on jets collateralized to the hilt? Hell, we wanted to borrow $250K for more land, and the bank wanted us to put up the entire $3MM ranch against it. And we have good credit and standing... :confused:
Click to expand...
 
j1b3h0 said:
Is there a bigger oxymoron than 'Reality TV'? What a joke.
Click to expand...


You realize the Millionaire and his Wife didn't really pay for a 4 hour tour the Skipper and his First Mate, Gilligan?
 
N747JB said:
If you haven't noticed, lending practices have changed drastically in the last 6 years, from telling the bank you need a loan and them depositing the money in your account before you get the papers signed. To we'll have to take it up with the loan committee and the most we want to loan is 50% on real estate! Actually, they don't want to loan anything on real estate, feds won't let them. :mad2:
I would say 95-99% of airplane repo's are voluntary surrenders, just call the bank tell them it's at ABC FBO, logbooks are in the back, key is on the board.
Click to expand...


Yeah, banks only loan you money now if you can prove you don't need it..... :mad2:
 
txflyer said:
Yeah, banks only loan you money now if you can prove you don't need it..... :mad2:
Click to expand...

Ironic part is that now banks compete to lend money to those that don't need it, whereas before, they competed to lend it to the sketchiest borrowers for the fees and interest margins.

Now, they know they still have to have loans, but they are cutting fees and interest rates to steal loans from each other. They aren't happy about reducing security for the loans, but they will cut the cost of the loans.
 
I had a conversation with one of our bank reps yesterday, they are loaning money under 2% in many cases for folks buying cars that have great credit, problem is they don't make much, if any profit on those deals. The ones that make money on are the mid-level credit customers, paying 4-9% interest, plus fees when they can get away with them.;)
The really good credit customers won't pay the higher rates, and the very marginal customers are hard to collect from, so the middle of the road creditwise is the only way they are really profitable. :dunno:
The feds have put such limits on banks with real estate loans limited to a certain multiple of their capital, that most of them would rather loan on anything BUT real estate. 6 years ago if you had dirt, they would sign you up for whatever loan and terms you wanted. ;)

JoseCuervo said:
Ironic part is that now banks compete to lend money to those that don't need it, whereas before, they competed to lend it to the sketchiest borrowers for the fees and interest margins.

Now, they know they still have to have loans, but they are cutting fees and interest rates to steal loans from each other. They aren't happy about reducing security for the loans, but they will cut the cost of the loans.
Click to expand...
 
N747JB said:
I saw it last night, I watched the Cub repo, when the faulty Piper fuel gauge (compass)read East they had to make an emergency landing!!! :yikes::yikes: I almost threw up! I did see part of the first yatch repo, looked like a 60+ foot sportfishing boat, lured the poor guy off the boat and into a bar with a pretty blond woman! :yikes: You can tell it was staged, he would have shown her the entire boat and mixed her a drink on board!;)
Click to expand...

Flying at night with no nav lights. I wonder if the FAA watches that show?
 
That entire running out of gas thing with the cub was Bravo Sierra. He landed on a turf airstrip. When they took off, I saw planes in the background near a hangar.

What a crock of shee et ... but it makes for watchable TV these days I guess.
 
txflyer said:
Who are these people who buy business jets and then don't pay for them?

That's insanity.

Who credited them in the first place to buy? How did they get financing if they can't pay? And aren't those big loans on jets collateralized to the hilt? Hell, we wanted to borrow $250K for more land, and the bank wanted us to put up the entire $3MM ranch against it. And we have good credit and standing... :confused:
Click to expand...

Replace "jet" with "house" above. It happens every day by the millions. Why's a jet different?
 
denverpilot said:
Replace "jet" with "house" above. It happens every day by the millions. Why's a jet different?
Click to expand...


Because most people don't borrow, nor are they loaned $MM's for a house ....

Like I said, what idiotic banker is taking only the jet as collateral? It's our experience, you have to put up thrice to ten times the amount in collateral on whale loans.... :dunno:
 
txflyer said:
Like I said, what idiotic banker is taking only the jet as collateral?
Click to expand...
I don't think idiotic is the right word, perhaps 'shrewd' would be better. They know the business they are in and they know there is a risk involved in lending money for a jet (or for any aircraft) or for a car or for an RV, a boat, etc. There is no way for them to be 100% sure ahead of time who will default on their loan. The cost of failure is accounted for in this business model, rates are higher, etc., at the end of the day they are still ahead $$.
 
Last edited:
txflyer said:
Because most people don't borrow, nor are they loaned $MM's for a house ....

Like I said, what idiotic banker is taking only the jet as collateral? It's our experience, you have to put up thrice to ten times the amount in collateral on whale loans.... :dunno:
Click to expand...

You might be surprised at the multi-million dollar mortgages out there.;) A lot of "rich" people are up to their eyeballs in debt and that's the group that defaulted on these big houses, big planes, big boats and big RV's. Not all of them are dime store millionaires, but quite a few of them were living on cash flow and buying all that the banks would allow! :mad2:
Like I said the rules are different today than 6 or 7 years ago! ;)
Give it a few years and the lending will be like the wild wild west again. :mad2:
 
It still does not compute. When I think of what you have to prove up to borrow even $1MM, the odds of a default have to be minuscule.

I know people can get in a bind. But people who buy multi-million dollar jets should be masters of credit and finance to even be considered for a loan.

If I were a banker, and some guy came in wanting to borrow money for a jet, my dead-beat radar would explode. People in that class normally write a check. They don't pay interest. They earn interest. :dunno: And anyone who knows jets knows, the purchase price is just the tip of the iceberg.
 
txflyer said:
It still does not compute. When I think of what you have to prove up to borrow even $1MM, the odds of a default have to be minuscule.

I know people can get in a bind. But people who buy multi-million dollar jets should be masters of credit and finance to even be considered for a loan.

If I were a banker, and some guy came in wanting to borrow money for a jet, my dead-beat radar would explode. People in that class normally write a check. They don't pay interest. They earn interest. :dunno: And anyone who knows jets knows, the purchase price is just the tip of the iceberg.
Click to expand...

That's the other problem a lot of guys bought these jets in the early to mid 2000's when prices were going up everyday and fuel was reasonably cheap. :D Hey for $10K a month we can own a jet! Then the phase inspections come due! "It's HOW MUCH for just the inspection!!!":yikes: But, but, but there's nothing wrong with it, how could it be $50K!!:D
Then the market crashed, 2007 Citation II's went from $1.5-2.5 million to todays market of well under $1 million, closer to $500K in many cases and these guys still owe 2 or 3 times that amount. :nono:
 
txflyer said:
People in that class normally write a check. They don't pay interest.
Click to expand...
Not true, very often even those that can write a check find it beneficial to take a loan for an asset (a car, yacht, airplane, mansion, vacation home, etc). It can have some tax benefits, or they want to simply have their money invested somewhere else (say a hedge fund?) where they can (potentially) earn much more than the interest they pay for this jet.

If I were a banker,
Click to expand...
Well, clearly you aren't a banker ... :no:
 
Last edited:
The problem is if you aren't careful (or smart) you will over leverage and end up not having the cash flow to cover the payments on the mansion, yacht, plane, beach house, etc.. If that happens and the banks suddenly see you as high risk they will call every loan you have causing a cash crunch leading to repo/foreclosure/bankruptcy. The show is dramatized, but having done repossessions I know that people really do act like some of those people when you come to take their stuff.


Sent from my iPod touch using Tapatalk - now Free
 
txflyer said:
Because most people don't borrow, nor are they loaned $MM's for a house ....

Like I said, what idiotic banker is taking only the jet as collateral? It's our experience, you have to put up thrice to ten times the amount in collateral on whale loans.... :dunno:
Click to expand...

Apparently your experience is the one reserved for responsible adults. You probably also got a lot lower interest rate than the jet loan, too.
 
olasek said:
Not true, very often even those that can write a check find it beneficial to take a loan for an asset (a car, yacht, airplane, mansion, vacation home, etc). It can have some tax benefits, or they want to simply have their money invested somewhere else (say a hedge fund?) where they can (potentially) earn much more than the interest they pay for this jet.

Well, clearly you aren't a banker ... :no:
Click to expand...


Maybe in yesteryear's climate before .02% interest rates and diminishing yield you could justify loaning $ and remaining invested. Not today. There is no 'tax benefit' I know of on an aircraft loan. You can't deduct the interest on a jet like a mortgage.

And no, I'm not a bankster. I employ them. Several of them. ;)

You seem to be taking this personally. Have you been in default? A little underwater on something perhaps? You are clearly no banker yourself. B)
 
txflyer said:
You are clearly no banker yourself.
Click to expand...
Nope. But I am not asking lame questions why would someone be taking a loan on a multimillion $$ jet or why a bank would extend such a loan, clearly there is little extraordinary about it since such loans are available and there are customers who both want them and qualify for them. I see little value in nitpicking why would anyone want some loan and why would someone on the other end offer such loan, it is part of normal economic activity exchanging goods and services. And no, I am not taking personally :dunno:
 
N747JB said:
That's the other problem a lot of guys bought these jets in the early to mid 2000's when prices were going up everyday and fuel was reasonably cheap. :D Hey for $10K a month we can own a jet! Then the phase inspections come due! "It's HOW MUCH for just the inspection!!!":yikes: But, but, but there's nothing wrong with it, how could it be $50K!!:D
Then the market crashed, 2007 Citation II's went from $1.5-2.5 million to todays market of well under $1 million, closer to $500K in many cases and these guys still owe 2 or 3 times that amount. :nono:
Click to expand...

Do auto finance companies still let the borrower roll their negative equity into a new car?
 
olasek said:
Nope. But I am not asking lame questions why would someone be taking a loan on a multimillion $$ jet or why a bank would extend such a loan, clearly there is little extraordinary about it since such loans are available and there are customers who both want them and qualify for them. I see little value in nitpicking why would anyone want some loan and why would someone on the other end offer such loan, it is part of normal economic activity exchanging goods and services. And no, I am not taking personally :dunno:
Click to expand...


If they are qualifying for the loan, then defaulting, they clearly should not have qualified in the first place. There was something hidden, or dishonest in the application.

Rich people, truly rich people, do not default. These are wannabee's. Or con men. As I have previously said, no bank I know of takes only the jet as collateral. These deadbeat's are either losing tons more than just the jet, or have lied on paper about the collateral, and the bank is taking a bath. I suspect it's the latter.

But your point is also correct. Some people are borrowing money for an ultra-luxury item and not re-paying it. Hence, operation REPO. How that happens, is a mystery unto itself.
 
Cub pilots will note that this week when the repo'd Cub 'ran out of gas' right above a nice grass runway the coat-hanger fuel gauge was showing half a tank of gas.
 
JimNtexas said:
Cub pilots will note that this week when the repo'd Cub 'ran out of gas' right above a nice grass runway the coat-hanger fuel gauge was showing half a tank of gas.
Click to expand...


I have the same type of gauge on my airplane. More then once it stuck. After I landed and bumped it, then the wire dropped. The cork that this is attached to hangs up sometimes on my filler neck if I put to much fuel in it.
So that could happen to me anyway....
 
us AAirways said:
Do auto finance companies still let the borrower roll their negative equity into a new car?
Click to expand...

Yes, it surprises me some time on how much they will carry on some customers! I have who bought Friday that was $20K+ upside down! even with cash down an fall the rebates! I think he financed $10K over sticker! :yikes::yikes:
He trades 4 or 5 times per year, craziest thing I've ever seen, he'll put $5-10K down, he doesn't just buy from me, he's liable to drive up in anything. His latest trade was a 2013 Nissan truck.:dunno:
PS. He's an airline pilot. :D
 
People's circumstances change, businesses that were making money can suddenly start losing money, properties that were rented for big money become vacant when a new shopping center opens up, fruit trees that have produced for years are killed by a drought. Lots of reasons people can't or won't pay for jets.;)
There is a local real estate developer that has or had shopping centers all over the country, he had 2 Citation X's, a CJ 2, and a helicopter, plus built a huge hangar for them all! That was 2007, now he's leasing a Citation.:dunno:
He knew he was upside down in the airplanes and he could use that money to pay for other things, so the banks got them all back! But, I doubt his application was fraudulent. ;)
txflyer said:
If they are qualifying for the loan, then defaulting, they clearly should not have qualified in the first place. There was something hidden, or dishonest in the application.

Rich people, truly rich people, do not default. These are wannabee's. Or con men. As I have previously said, no bank I know of takes only the jet as collateral. These deadbeat's are either losing tons more than just the jet, or have lied on paper about the collateral, and the bank is taking a bath. I suspect it's the latter.

But your point is also correct. Some people are borrowing money for an ultra-luxury item and not re-paying it. Hence, operation REPO. How that happens, is a mystery unto itself.
Click to expand...
 
We all know the Repo Airplane is a hoax, but it is really bad when the hired pilots are taking their personal aircraft. On the repo of a beaver in alaska, Joe (hired pilot) was filmed with repo guy taking his own airplane. Heck, I know why they blur out the N #. they do not want you to know it is the repo pilot's airplane.
Please.. Rowe (discovery channel narrator) and voice of Deadliest catch has gone too far.
 
Mike doesn't have anything to do with it, other than he is paid to narrate it.

We all know this version of "reality TV" is fiction. Why not take it for the entertainment value and ignore the rest?
 
Greg Bockelman said:
Mike doesn't have anything to do with it, other than he is paid to narrate it.

We all know this version of "reality TV" is fiction. Why not take it for the entertainment value and ignore the rest?
Click to expand...

The road to hell isn't just paved with good intentions anymore, it's got a nice soundtrack and a smooth baritone narrator. ;)

I'm so glad I haven't seen a single episode of this crap.
 
N747JB said:
Yes, it surprises me some time on how much they will carry on some customers! I have who bought Friday that was $20K+ upside down! even with cash down an fall the rebates! I think he financed $10K over sticker! :yikes::yikes:
He trades 4 or 5 times per year, craziest thing I've ever seen, he'll put $5-10K down, he doesn't just buy from me, he's liable to drive up in anything. His latest trade was a 2013 Nissan truck.:dunno:
PS. He's an airline pilot. :D
Click to expand...

Whoa, and I thought I was bad trading once a year.
 
N747JB said:
People's circumstances change, businesses that were making money can suddenly start losing money, properties that were rented for big money become vacant when a new shopping center opens up, fruit trees that have produced for years are killed by a drought. Lots of reasons people can't or won't pay for jets.;)
Click to expand...
Absolutely, one doesn't have to be a crook or hide something on the loan application to get into financial trouble. Also, even if airplane repo happens it must be pretty rare, most likely you first reach some accommodation with the bank, sell aircraft, liquidate other assets, etc.
 
Nobody is in fiscal trouble here in the ol' USA.

The news told me we're in a "recovery" with the same unemployment rate as when they said "OMFGBBQWTF?! The SKY IS FALLING!", and millions have already given up looking to make those numbers look that good.

LOL... Times is good!

(At the AIG company golf tournament anyway...)
 
Greg Bockelman said:
Mike doesn't have anything to do with it, other than he is paid to narrate it.

We all know this version of "reality TV" is fiction. Why not take it for the entertainment value and ignore the rest?
Click to expand...

My criticism is that it makes pilots look like unsafe idiots. Using a Garmin Nuvi to navigate to another airport at night? Seriously?
 
us AAirways said:
Whoa, and I thought I was bad trading once a year.
Click to expand...

I actually went to high school with him, great guy, I've tried to talk him out of trading so often, but to no avail.:dunno: If I don't trade with him, somebody else will.;)
 
txflyer said:
Maybe in yesteryear's climate before .02% interest rates and diminishing yield you could justify loaning $ and remaining invested. Not today. There is no 'tax benefit' I know of on an aircraft loan. You can't deduct the interest on a jet like a mortgage.
...
Click to expand...

When did the 10% business investment tax credit go sway? After Rosty's tax reform?

I remember the signs at Oshkosh, "Let us show how this plane can save you $20,000 on your tax bill."
 
mikea said:
When did the 10% business investment tax credit go sway? After Rosty's tax reform?

I remember the signs at Oshkosh, "Let us show how this plane can save you $20,000 on your tax bill."
Click to expand...


Any 10% business credit, if it still exists, would be wiped away by the luxury tax upfront I would think.

I'm no financial guru, as one member vehemently pointed out.

Unless the jet boys have all their maintenance, insurance, inspections, and upkeep figured out in a way they are deducting those expenses, the purchase price is relatively minuscule compared to the ongoing cost per hour. Getting into a jet is easy compared to affording it afterwards. :redface:
 
You must log in or register to reply here.
Back
Top