Financing Your Aeroplane
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Join Date: Jan 2003
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Financing Your Aeroplane
So what is the best way to finance your aeroplane ? Aircraft mortgages, leases or what ?
And does anyone have any recommendations for finance houses ? They have used and how much are repayments on say £25K ?
Ta
Arc
And does anyone have any recommendations for finance houses ? They have used and how much are repayments on say £25K ?
Ta
Arc
Join Date: May 2001
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If you have a mortgage borrow the money on that. In the past year, I've borrowed an extra £30k, took 10 mins on the phone and 5 days later the money was in my account.
£30k over 12 years works out at about £270/mo at a rate of about 5.9% or whatever the current mortgage rates are.
Now all I've got to do is convince the mussus that we really don't need a new kitchen, but a nice shiny aeroplane
EA
£30k over 12 years works out at about £270/mo at a rate of about 5.9% or whatever the current mortgage rates are.
Now all I've got to do is convince the mussus that we really don't need a new kitchen, but a nice shiny aeroplane
EA
Join Date: Aug 2003
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Unless you have no equity in your house (in which case, wait a couple of days), there doesn't seem much point in aircraft mortgages. I got a quote from Lombard which was nowhere near as good as my mortgage deal and required the plane as security. The terms of the security were also quite restrictive and would, for instance, have prevented me N-registering the plane.
Join Date: May 2001
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If you have any equity in your house, that's the best way to finance an aeroplane, since aircraft financing rates are way above where any sane person would expect. They're cheaper than buying a plane on your credit card, but not by much.... In fact if anyone's got any spare capital I have a business plan where the risk/reward payoff is extremely attractive!
I tried Lombard but they seemed completely uninterested in my enquiry. I turned to Air & General and found they had a range of options and were generally more flexible and hungry for the business.
I tried Lombard but they seemed completely uninterested in my enquiry. I turned to Air & General and found they had a range of options and were generally more flexible and hungry for the business.
Join Date: Jun 2002
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Well, call me old fashioned, but personally I believe that one should save up and pay cash for an airplane. Let's face it, for us weekend flyers an aircraft is a luxury, an indulgence, a toy ... and I don't believe it is prudent to go into debt to facilitate such purchases.
That's my view, others may reasonably differ.
That's my view, others may reasonably differ.
