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

Normally I'd agree, but in the short term it may make sense to finance
1/2 and then pay it off early at the beginning of next year to close
out the loan.

On 31 Aug 2005 15:31:59 -0700, "
wrote:

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.

Aviation loans tend to have higher rates than homes, cars, and even
boats. I would expect somewhere between 8 and 10% depending on term
and credit rating.

If you have access to a line of credit on your home, look into using
that - better rates and the interest will be tax deductible.

-Nathan

MBNA from AOPA quoted me 6.7% but I've heard of terms to get it down to 5.5%

wrote in message
ups.com...
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

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

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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