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Financing

truflite

Well Known Member
I have been building my 7A using the pay to play method. I get money, I buy a kit. I am at the point of needing everything firewall forward. My question is- how did you finance the expensive end of your aircraft? I would prefer answers from those that are not made of money as that is my situation but all are welcome. Any banks or aviation financiers that are experimental friendly? Have been turned down once "We don't do experimentals". Thanks in advance for the help.
 
I used Bank of Locust Grove in Locust Grove, Ok Great to deal with. I found out about them from AOPA Finance group. Made the whole process real easy.
 
What Pierre said...

I hate owing money, especially for toys. But if I had to go there, I'd look at a line of credit on my house. In the past, I wouldn't risk the house as collateral for anything, but these days, the fine print in loan contracts lets them go after everything you own anyway. Home loans are almost free these days, but consumer loans can still clean your clock in interest.

A banker who knows you is much more likely to work with you than someone who doesn't.

Charlie

Edit: The 1st RV-4 I bought (long ago and far away), I financed through my local credit union. Told them it was a experimental RV-4 airplane; they financed it through their 'RV financing program'. (True story.)
 
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Do you have any equity in your home?

Home equity lines of credit are very inexpensive and are tax deductible.

:) CJ
 
Same way all the way.

I am doing just what you have been doing. When I got some money, I bought an engine core. When I got some more money, firewall forward kit. More money, paid for machining the case and steel parts. More money, bought cylinders and bearings, etc. Engine is being assembled now.

If I ever get more money, I will buy the rest of the avionics.

I figure once it is flying I would rather buy av-gas than make a payment.
 
I am doing just what you have been doing. When I got some money, I bought an engine core. When I got some more money, firewall forward kit. More money, paid for machining the case and steel parts. More money, bought cylinders and bearings, etc. Engine is being assembled now.

If I ever get more money, I will buy the rest of the avionics.

I figure once it is flying I would rather buy av-gas than make a payment.

Agree. For toys, this is the prudent way to go and faster to have it paid for than with interest. Don't forget that once it's flying, you will have more time on your hands. That means money is being spent.

Bevan
 
I tried getting a loan from AOPA financing. They were no help. Pay as you go is wise but I want to fly before I retire in 10 years so I did a HELOC with a nice low rate and get to write off the interest on my taxes.
 
I have no firsthand knowledge...just hearsay, but there's a couple of folks at my home field who financed their RV's through https://www.lightstream.com/aircraft-financing/ I took a gander just being curious, and they look like they offer fairly low interest rates for aircraft. It looks to be a division of SunTrust.
 
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I met J. Michael Jacobs of First Pryority on a chair lift last winter, very nice person, and has treated two people I sent his way well.
 
No payments desired, enough to spend when flying without having interest and repayments. Took awhile but consider pay-as-you-go the ultimate in motivation to 'save' on everything you 'want' by getting only what you 'need'.
 
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