On Fri, 06 Feb 2004 17:04:08 GMT "Dude" wrote:

I got 20 from MBNA on a new plane. They do did ask if you plan to use a
leaseback.

The reason they are asking is that when Cessna unloaded a lot of planes
cheaply a year or two ago, many skyhawk owners found out that they were
upside down in their leaseback planes. At the same time hours were dropping
and some of them walked away from the deal because they were really broke,
or just mad. The finance company gets stuck.



There must be more to it then just that. But I could understand how
people would walk away from a leaseback that's underwater but it
seems it's most likely to happen in the first 10 years
rather than the last. And with a cheaper monthly payment on a
20 year note it seems the chances of going inverted on
a leaseback would be less common. Plane doesn't have to fly as much
to cover the monthly.


Those that ask usually want no more than a 10 year note on a leaseback,
which you MAY be able to negotiate up with a larger down payment. Or you
can fib, just make sure that there is no language in the contract to prevent
you from later deciding to put the plane on leaseback.


Increasing the down payment sounds like a good option.



Shop around, it took me two months, but I got the loan I wanted.


Yes will do that, I think it's a borrowers market.

Tanks for sharing your experience.

R. Hubbell




"R.Hubbell" wrote in message
...
Calling all owners that leaseback a plane to a club or FBO or ??

I have found that financers offer different loans depending on
the who uses the plane. For a club they want 10 years or less
but for private they will finance up to 20 years. Maybe I just need
to keep looking. I don't quite undertand why they would care as
long as they get paid.

So if you are leasing a plane back what kinds of loans were you
able to get?


The 20 year loans are ideal for so many reasons.

R. Hubbell