Are any banks financing Experimentals?

MarkH

MarkH

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MarkH
I am looking to by my first plane, and after going through AOPA finance I was connected with a bank that has basically decided that I should only buy a Cherokee 140.

The trouble is, a Cherokee 140 does not fit my mission all that well.

I am considering cross country flyer for under $35K that can handle 2 souls and baggage (425lbs+fuel), for 300nm trips (direct), and burns <6gph.

My initial thought was a Luscombe 8e (and a $25K limit), but the bank took a stand against anything older than 1960, and my initial insurance information made it clear that spending $35K on a tri-gear plane would cost about the same as a 25K taildragger.

Some 150s come close, but so many experimentals meet the criteria.

RVs are out of my price range, but some ELSAs, a KIS-TR1 or Varieze seems ideal.

Can anyone recommend a bank that is willing to have this conversation?
 
You'll probably have better luck doing this as either a HELOC or an unsecured personal loan.
 
HELOC is not an option because I do not currently own a home (and I don't plan to buy one any time soon.)

I am considering a personal loan, but I would prefer to take on collateralized debt for this.
 
MarkH said:
HELOC is not an option because I do not currently own a home (and I don't plan to buy one any time soon.)

I am considering a personal loan, but I would prefer to take on collateralized debt for this.
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I can see why the lender wants to limit your options and actually surprised they want to loan you anything.
 
steingar said:
One should NEVER take out a loan to buy a toy.
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Why? Because they’re going to pay interest? If I followed that logic my 20s would have been so boring, I financed a number of toys- ie motorcycles, jeeps, etc. I see no problem with managing debt for fun times!

That said I went to AOPA for financing my first plane. I can’t remember who exactly they sent me to but it was such a pain I ended up just writing a check instead. There are a number of people on the Vans board who have used First Pryority Bank for their builds.
 
OkieAviator said:
Why? Because they’re going to pay interest? If I followed that logic my 20s would have been so boring, I financed a number of toys- ie motorcycles, jeeps, etc. I see no problem with managing debt for fun times!

That said I went to AOPA for financing my first plane. I can’t remember who exactly they sent me to but it was such a pain I ended up just writing a check instead. There are a number of people on the Vans board who have used First Pryority Bank for their builds.
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Because you need to save up your debt allowance to buy too large of a house and then furnish it, pay for your kids' car and college, and pay for the credit card debt your ex wife ran up. You can't be spending it on anything as silly has having fun, especially for yourself. Must I explain everything?
 
A RV4 or 6 is the best aircraft in the class you are talking about. A basic RV 6 can probably be found for close to 35K and they are easy to finance and insure.
 
There is a bank in OK that is very Experimental friendly. First Priority Bank of Pryor, OK.

steingar said:
One should NEVER take out a loan to buy a toy.
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My current plan is to finance the engine and avionics. If I waited to have enough money to purchase both outright it would add several years to my building plans unless I got a massive promotion at work.
 
Nothing wrong with financing a toy if you can manage the debt. What I do have a problem with is buying a toy and leveraging your home. Id only use a HELOC if I had the cash but it was better served elsewhere. Otherwise no way would I leverage my home on anything.
 
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