View Full Version : Small aircraft financing in Europe?
Ultranomad
5th Apr 2006, 23:51
Does anyone know of any financial institutions in EC offering low-end aircraft loans? That is, for a pre-owned piston single, not for a new corporate jet...
neilcharlton
6th Apr 2006, 20:23
just get a personal loan , tell them its for a car .
or the back of pilot might be an idea ... i think lombard do them
Genghis the Engineer
6th Apr 2006, 20:50
I've had a personal loan from my bank to buy a low-end aeroplane, told them what it was for, they were a little surprised, but had no actual problems.
G
MichaelJP59
7th Apr 2006, 08:33
For unsecured personal loans it's irrelevant to the lending institution what the money is used for, you can use it to buy Lotto tickets if you want!
tonyhalsall
7th Apr 2006, 13:19
This is a great point I think because second had single engined pistons would make for great balloon lease finance objects.
They don't depreciate to the same degree (% wise) as cars as long as they are maintained therefore the residual should be much safer than in the automotive world.
As usual it just needs someone to bite the bullet and do it
d192049d
7th Apr 2006, 15:58
Could not agree with you more....
Have been involved in the automotive leasing sector for too many years and as a ppl cannot understand why the concept of ballon leasing or better still Contract Hire has not migrated into aviation.
With such low depreciation aircraft are a safe bet and the day somebody starts this is the day private aviation snow balls in the UK.
Anybody fancy a little flutter?
tonyhalsall
7th Apr 2006, 16:59
Anybody fancy a little flutter?
Yes me!!
I'd love to have a go at this - I mooted the idea a couple of years ago when I clocked the minimal depreciation of the 4 stroke 3 axis microlights but that idea fell a bit flat because the leasing Company would own the 'fleet' and at that time microlights could not be rented from a third party.
There is mileage in this but I am not that well connected in the world of leasing - I would definately invest a few quid in marketing a lease product if one could be packaged.
Ultranomad
7th Apr 2006, 18:40
Well, in this case we just need to write a well-structured document showing by verifiable examples that small aircraft are a good risk for a leasing company. With this in hand, it will be possible to approach many different institutions and plead the case. Sooner or later we'll have a precedent established.
ManfredvonRichthofen
7th Apr 2006, 19:03
Interesting
But is the market big enough to justify this ?
I presume this is why the big boys aren't in on it already.
Can't think why else off hand.
I'm supposed to be starting as a solicitor soon, hopefully specialising in aviation finance, so I'll keep my eyes peeled for Pprune Finance plc on the horizon !