Aircraft Financing

I'm debating the purchase of a plane and I was wondering what the
current rates are that anyone has gotten for financing on an aircraft
for a loan amount of $50-60K for either a 5, 7, or 10 year term. I know
that AOPA can quote this, and I'll be calling them tomorrow during
business hours. However I wanted to see what other people had found by
shopping around.

Thanks,
Eric

Its amazing to me that some people finance their personal aircraft. The
monthly costs associated with owning an aircraft are so massive I can't
imaging servicing a loan on top of that.

-Robert, M20F

Must be nice to have so much money one wouldn't have to finance.


"Robert M. Gary" wrote in message
oups.com...
Its amazing to me that some people finance their personal aircraft. The
monthly costs associated with owning an aircraft are so massive I can't
imaging servicing a loan on top of that.

-Robert, M20F

"Must be nice to have so much money one wouldn't have to finance"

Must be nice to have so much money one can afford to make the monthly
loan payments AND pay the maintenance and other costs to keep the
aircraft. My plane costs me $500/month just to sit on the ground (base
annual, insurance, property taxes, tie down, etc) . That doesn't even
include fixing anything that may break as a result of flying.

-Robert

I don't know how anyone would have so much money to pay cash for a plane
that is worth very much. I'm not talking about a 20k 152 either. Our
"J" model Mooney was over 100k and my partner (a brain surgeon with a
lot more money than me) and I decided to finance 90% of our purchase. To
me the 6% interest on the financed money can be put to better use
elsewhere.

You have a partner in your "F" too, if I remember correctly?

Jon Kraus
'79 201
4443H @ TYQ


Robert M. Gary wrote:
"Must be nice to have so much money one wouldn't have to finance"

Must be nice to have so much money one can afford to make the monthly
loan payments AND pay the maintenance and other costs to keep the
aircraft. My plane costs me $500/month just to sit on the ground (base
annual, insurance, property taxes, tie down, etc) . That doesn't even
include fixing anything that may break as a result of flying.

-Robert

"You have a partner in your "F" too, if I remember correctly?"

Yes, I do have a partner for similar reasons. Although I could pay cash
for my plane I thought it would be better to keep more of my money in
the market. Besides, unless you fly at least 100 hours per year, it
just doesn't make sense to own by yourself and its not good for the
plane. My partner and I paid cash $80K.

Jon, are you on the Mooney list now? You should check out aviating.com
to sign up for either the general Mooney list or the tech list. Both
are VERY helpful to Mooney owners.
-Robert

In article .com,
"Robert M. Gary" wrote:

Its amazing to me that some people finance their personal aircraft. The
monthly costs associated with owning an aircraft are so massive I can't
imaging servicing a loan on top of that.

-Robert, M20F


Forgive me for not being rich!

--
Chris Schmelzer, MD
University of Arizona, UPH Kino

Chris Schmelzer wrote:

In article .com,
"Robert M. Gary" wrote:

Its amazing to me that some people finance their personal aircraft. The
monthly costs associated with owning an aircraft are so massive I can't
imaging servicing a loan on top of that.

-Robert, M20F

Forgive me for not being rich!

Robert indicated that he *cannot* imagine servicing a loan on top of
monthly ownership costs. Doesn't come across as rich to me. rimshot

At least one very wealthy person I know finances his aircraft because
owning an aircraft is a large tax deduction for him (in the US) and because
he is able to receive a larger return on his current capital than the cost
of financing.

--
Peter
























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Peter R. wrote:

At least one very wealthy person I know finances his aircraft because
owning an aircraft is a large tax deduction for him (in the US) and because
he is able to receive a larger return on his current capital than the cost
of financing.

I suppose this is a business aircraft? Us peons can only deduct loans on our
houses. Of course, you can take out a loan on the house and use the money to buy
a plane, but that's not exactly what most people mean by financing an aircraft.

George Patterson
Give a person a fish and you feed him for a day; teach a person to
use the Internet and he won't bother you for weeks.

George Patterson wrote:

I suppose this is a business aircraft? Us peons can only deduct loans on our
houses. Of course, you can take out a loan on the house and use the money to buy
a plane, but that's not exactly what most people mean by financing an aircraft.

No, I was referring to the accelerated depreciation that the Fed currently
allows. I wasn't even thinking about deducting the interest on the loans.

--
Peter
























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