Getting a loan on an experimental?

Keane

Keane

Pre-takeoff checklist
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Hillsboro, OR
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ErichKeane
Hi all-
I recently took a test flight and decided to buy a completed 2001 Zodiac 601 HDS. It fits me almost perfectly, has a great panel, and is a fantastic flier.

However, I need to finance a little more than 1/2 of it. I have great credit, and my dad has offered to cosign, so actually getting a loan should be easy.

However, I cannot seem to find a bank that will finance on all but a small few experimental aircraft, let alone one that they see as 'light sport'.

What options/banks do you guys know about?
 
Keane said:
Hi all-
I recently took a test flight and decided to buy a completed 2001 Zodiac 601 HDS. It fits me almost perfectly, has a great panel, and is a fantastic flier.

However, I need to finance a little more than 1/2 of it. I have great credit, and my dad has offered to cosign, so actually getting a loan should be easy.

However, I cannot seem to find a bank that will finance on all but a small few experimental aircraft, let alone one that they see as 'light sport'.

What options/banks do you guys know about?
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IIRC, the EAA has an arrangment with some finance outfit (Airfleet Capital Inc?). I'd start there unless you can find a bank that does a lot of aircraft loans. Also any financing will require complete hull insurance, have you looked into that?

BTW are you aware of the major design issue affecting the Zodiac's. I think they have a fix but it's not cheap and since it addresses a potentially serious structural problem it needs to be done.
 
You could try Dorr Aviation. I don't know if they loan on experimentals or not.
But it wouldn't hurt to ask. (www.dorraviation.com)
 
I'd already tried Airloan.com and Airfleet capital, both denied this plane.

BTW are you aware of the major design issue affecting the Zodiac's. I think they have a fix but it's not cheap and since it addresses a potentially serious structural problem it needs to be done.
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I know of the issue, however it doesn't affect the HDS. The problem is with the 601 XL and 650, which have a significantly different wing design. Also, it doesn't have the aileron flutter that is reported on some, because it doesn't use the piano hinges on the ailerons.
 
I'm not going to try to throw a wrench in your plans well ok I am. If you are serious about buying a Zodiac and are aware of the issues Lance ( gismo) mentioned above and are prepared to do what ever fix may be necessary to resolve the issues, you may want to contact Jay Maynard who is on this board. here is his profile and contact info

http://www.pilotsofamerica.com/forum/member.php?u=4707

Jay is the owner of the most beautiful and well equipped Zodiac I have ever seen and he wants ney needs to sell it. you may just end up with the nicest Zodiac out there at a great price.
 
AdamZ said:
I'm not going to try to throw a wrench in your plans well ok I am. If you are serious about buying a Zodiac and are aware of the issues Lance ( gismo) mentioned above and are prepared to do what ever fix may be necessary to resolve the issues, you may want to contact Jay Maynard who is on this board. here is his profile and contact info

http://www.pilotsofamerica.com/forum/member.php?u=4707

Jay is the owner of the most beautiful and well equipped Zodiac I have ever seen and he wants ney needs to sell it. you may just end up with the nicest Zodiac out there at a great price.
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Are banks doing short sales on planes?

Reality check, does the aircraft serve an economically advantageous purpose? If not, you probably shouldn't be borrowing money for one. Better to find a partner or two.
 
AdamZ said:
I'm not going to try to throw a wrench in your plans well ok I am. If you are serious about buying a Zodiac and are aware of the issues Lance ( gismo) mentioned above and are prepared to do what ever fix may be necessary to resolve the issues, you may want to contact Jay Maynard who is on this board. here is his profile and contact info

http://www.pilotsofamerica.com/forum/member.php?u=4707

Jay is the owner of the most beautiful and well equipped Zodiac I have ever seen and he wants ney needs to sell it. you may just end up with the nicest Zodiac out there at a great price.
Click to expand...

The wing issues only affect the XL and 650, so this one doesn't have the same wing issues, it is a totally different wing design.

I know about Jay's plane, it is actually what got me looking at the Zodiacs. Unfortunately, he wants about double for his what I offered/got accepted for this one. It has steam gauges, but otherwise it is comparable.

In addition, because this one is an experimental, I'd be able to do the engine work myself, which I like the ability to have.
 
Keane said:
I'd already tried Airloan.com and Airfleet capital, both denied this plane.
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Did they say why? I'm wondering if they are avoiding all Zodiac's because of the problems with the 601 design.

I know of the issue, however it doesn't affect the HDS. The problem is with the 601 XL and 650, which have a significantly different wing design. Also, it doesn't have the aileron flutter that is reported on some, because it doesn't use the piano hinges on the ailerons.
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OK, I didn't realize this design was that different.
 
gismo said:
Did they say why? I'm wondering if they are avoiding all Zodiac's because of the problems with the 601 design.


OK, I didn't realize this design was that different.
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The reason is they only finance specific experimental aircraft. Bank Of America gave me the list, and it was the RV-6 and RV-9 (perhaps others?), Glasair and Lancair aircraft, and a few others.

I assume everyone is running off of a similar list.
 
Bob Noel said:
You could try Dorr Aviation. I don't know if they loan on experimentals or not.
But it wouldn't hurt to ask. (www.dorraviation.com)
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Dorr doesn't do experimentals either unfortunately. The guy also mentioned they don't do LSAs either.

Looks like I might have to do a personal loan.
 
Keane said:
I'd already tried Airloan.com and Airfleet capital, both denied this plane.
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Why did NAFCO deny it? I just bought a Sonex back in October and
went thru them. I thought they were very good to work with. I dealt
with Kevin Buckland there. I know they want to see a certain number
flying and be able to find some comp sales to establish current market
value. Interest rate depends on the amount you're borrowing and your
credit.

Even though this plane isn't one of the ones with the wing problems,
it's often guilt by association in the market place. When I buy a plane I
buy something that I'll be able to sell easily.

RT
 
I got an email from Kevin that said they don't work with any banks that loan on this plane.

BoA has an 'approved' list of Experimentals they loan on, so I figure NAFCO's must be the same way.
 
Keane said:
I got an email from Kevin that said they don't work with any banks that loan on this plane.

BoA has an 'approved' list of Experimentals they loan on, so I figure NAFCO's must be the same way.
Click to expand...

Would they be willing to give out a copy of "the list"?


Trapper John
 
Trapper John said:
Would they be willing to give out a copy of "the list"?


Trapper John
Click to expand...

When I called Bank of America, the woman listed out quite a few, I remember the RVs, Glasair, Lancair, and there were others.

So I guess if you asked, they'd tell you.
 
There are other options for you to pick from. Experimental aircraft are hard to get financing for, so look at other items you can use as collateral. (i.e. Certificates of Deposit, Autos, 2nd mortgage, etc) I have had better luck using locally owned Banks, but I hate the BIG Corp Banks and will hide my money under a rock before I ever use them.
 
Dean said:
There are other options for you to pick from. Experimental aircraft are hard to get financing for, so look at other items you can use as collateral. (i.e. Certificates of Deposit, Autos, 2nd mortgage, etc) I have had better luck using locally owned Banks, but I hate the BIG Corp Banks and will hide my money under a rock before I ever use them.
Click to expand...

The only thing I could identify was my 401k (a loan against one is pretty interesting...), however it doesn't hit my credit report, which was one of the big advantages to this purchase.

I contacted the seller and backed out (the sale was contingent on being able to get a loan on it anyway), so I'll just be renting for the future.

I was really looking forward to 135 mph on 4 gph and 800 mile range, but it wasn't meant to be.

The worst part is I was only trying to finance ~ 1/2 of the purchase price. I'll have to continue saving and look again in another year or two.
 
Keane said:
The only thing I could identify was my 401k (a loan against one is pretty interesting...), however it doesn't hit my credit report, which was one of the big advantages to this purchase.

I contacted the seller and backed out (the sale was contingent on being able to get a loan on it anyway), so I'll just be renting for the future.

I was really looking forward to 135 mph on 4 gph and 800 mile range, but it wasn't meant to be.

The worst part is I was only trying to finance ~ 1/2 of the purchase price. I'll have to continue saving and look again in another year or two.
Click to expand...

Look at the bright side. You'll get a raise this year. The focal budget is greater than 0. :D
 
Ghery said:
Look at the bright side. You'll get a raise this year. The focal budget is greater than 0. :D
Click to expand...

Oh yeah, that is awesome! I was going to spend it on goodies for a new plane, but I think I'll just use it for an Instrument rating or something.
 
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