Glider Financing : Is Lea County State Bank still the only game in town?

[ripacheco1967]

Looking into buying a glider... I bought three aircraft in the past, the ones that have a fan strapped to the nose ;).

I been looking at the financing options and they seem limited LCSB seems to be the "only" out there advertising for glider pilots. Rates are not that great though...

is that the current state of affairs? Or I am missing something here?

==robert

[John Foster]

On Monday, May 20, 2019 at 10:56:19 AM UTC-6, ripacheco1967 wrote:
> Looking into buying a glider... I bought three aircraft in the past, the ones that have a fan strapped to the nose ;).
>
> I been looking at the financing options and they seem limited LCSB seems to be the "only" out there advertising for glider pilots. Rates are not that great though...
>
> is that the current state of affairs? Or I am missing something here?
>
> ==robert

I'd try a local bank or credit union. My local bank was willing to lend me $15,000 at about 5% for 5 yrs on a glider advertised on W&W. A lot would depend on your credit score though as well. You may get a better loan as well if you set up a LLC/business and have a way to justify doing it as a business.

[ripacheco1967]

That is good advice... maybe local lenders are more competitive.

[Dan Marotta]

Maybe a home improvement loan...

On 5/20/2019 12:51 PM, ripacheco1967 wrote:
> That is good advice... maybe local lenders are more competitive.

--
Dan, 5J

[WB]

On Monday, May 20, 2019 at 11:56:19 AM UTC-5, ripacheco1967 wrote:
> Looking into buying a glider... I bought three aircraft in the past, the ones that have a fan strapped to the nose ;).
>
> I been looking at the financing options and they seem limited LCSB seems to be the "only" out there advertising for glider pilots. Rates are not that great though...
>
> is that the current state of affairs? Or I am missing something here?
>
> ==robert

Try a local Credit Union if you have one associated with your work or one that serves the general public. The Credit Union associated with my work lent me money to buy a glider. They had no idea about gliders so gave me an "RV" loan. Interest rates were not that great, but paid it off quick, so no big deal.

[joesimmers[_2_]]

A Home Equity line of credit works very well.

I have a 100k line of credit for 4.25% and the
value of my house is only 150k.

It is paid off but I can write a check for anything
I want, anytime I want, they do not care what it is
as long as you make the payments!!!

[Ramy[_2_]]

And it used to to be tax deductible...

Ramy

[Darryl Ramm]

On Monday, May 20, 2019 at 8:53:44 PM UTC-7, Ramy wrote:
> And it used to to be tax deductible...
>
> Ramy

Honey I got a bank loan for that new kitchen model....

[Steve Leonard[_2_]]

On Tuesday, May 21, 2019 at 12:12:32 AM UTC-5, Darryl Ramm wrote:
> On Monday, May 20, 2019 at 8:53:44 PM UTC-7, Ramy wrote:
> > And it used to to be tax deductible...
> >
> > Ramy
>
> Honey I got a bank loan for that new kitchen model....

My house got much nicer with the Nimbus 3 Addition! Oh, and I did use it for the new roof, too.

Steve

[[email protected]]

I believe AOPA has a financing arm.

Mark

[[email protected]]

I just bought a glider and used a car loan to supplement the cash saving I had for the purchase. Commercial Banks and Credit Unions will loan you up to 80% the value of the vehicle if there are no other liens on it, and you can use the cash for whatever you want. The process takes about 2 hours from start to getting the money too. The loan will be the lowest interest rate you can get for any type of loan...between 3% and 4%. I was given 3.5%, I'm sure I could find someone to give it to me at 3.2% if I cared. Credit Unions usually give the best rates for these types of loans. I told my credit union I was buying a glider with the money, and my loan guy was "cool! text me a picture when you get it".

I know that unless you own a Porsche outright, then 80% the value of most cars won't give you the full purchase money needed buy most gliders, but you will pay the least amount of interest on whatever you borrow. So if you are going to borrow, at least borrow some portion at the lowest interest rate possible.

This next portion was not for OP, but for someone else reading or looking in RAS at a later time....


I will also say, getting two loans in quick succession could be bad for the second loan, as it will look bad during your credit check seeing the first loan happening recently depending on your credit history. If you are described as "thin filed", meaning you haven't been borrowing a lot of money from any source, and then all of sudden you are asking for a lot of money from multiple, it looks shady. Also means you get your biggest loan first, then your second. So I would ask if getting two loans would actually be beneficial with a loan professional at a bank before doing the two loan concept.. Again, Credit Unions are the best place to ask as they aren't there to make share holders money.

Lastly, when looking for the best rate, pay off all your credit card debt a week before applying if you can, as that reduces your debt-to-assets ratio, which directly affects your interest rate.