Question about term lengths for aircraft loans

[[email protected]]

To do some very preliminary budgeting for purchasing an older single
engine aircraft, I need an idea of how long of a term that a finance
company might provide for a 30 year old aircraft. I suspect there must
be a typical limit for aircraft over a certain age.

Does anyone have information that can get me in the ball park?
Is it possible to get a 15 year or even a 20 year loan on a 30 yo
plane?

[Peter Clark]

On Fri, 09 May 2008 16:24:23 -0400, wrote:

>
>To do some very preliminary budgeting for purchasing an older single
>engine aircraft, I need an idea of how long of a term that a finance
>company might provide for a 30 year old aircraft. I suspect there must
>be a typical limit for aircraft over a certain age.
>
>Does anyone have information that can get me in the ball park?
>Is it possible to get a 15 year or even a 20 year loan on a 30 yo
>plane?

I got quoted 20 year fixed 20 year term from Airfleet Capital on a
1979 airplane. Cessna Financing seems to use 12 year terms for
everything nowadays. It might depend on the amount financed too.
You'll probably have to call somewhere directly and ask.

[Peter Dohm]

> wrote in message
...
>
> To do some very preliminary budgeting for purchasing an older single
> engine aircraft, I need an idea of how long of a term that a finance
> company might provide for a 30 year old aircraft. I suspect there must
> be a typical limit for aircraft over a certain age.
>
> Does anyone have information that can get me in the ball park?
> Is it possible to get a 15 year or even a 20 year loan on a 30 yo
> plane?

First, aircraft loans are not in my specialty. But, before you spend a lot
of time looking for longer terms, take a look at how much the term changes
the payment amounts. If the interest rate is 5%, then the longest available
term may make sense--as long as you keep it insured and the values never get
"upside-down." OTOH, if the interest rate is 10% or more, you probably want
the shortest term you can afford. However, you need to do the calculations
first; so that you will know what is even worth asking about...

So, if you have a financial calculator, break out the book and run some
sample calculations. Otherwise, ask your banker or just try one of the web
based calculators--you can search for "mortgage rate calculator" or
"mortgage amortization" or something similar.

Peter

P.S.: Values fluctuate, even in real estate, so make sure you have a good
cushion in your values!

[ProCredit]

formulated on Friday :
> To do some very preliminary budgeting for purchasing an older single
> engine aircraft, I need an idea of how long of a term that a finance
> company might provide for a 30 year old aircraft. I suspect there must
> be a typical limit for aircraft over a certain age.

> Does anyone have information that can get me in the ball park?
> Is it possible to get a 15 year or even a 20 year loan on a 30 yo
> plane?

Credit is a function of your MyFico and personal balance sheet.Combined
withyour downpayment against the minimalized value of the A/C.

[Lou]

> > Is it possible to get a 15 year or even a 20 year loan on a 30 yo
> > plane?

I just gotta ask. Why would you want a 15-20 loan on a 30 yr aircraft?
The interest alone would darn near double the cost of the aircraft.
Thats not even mentioning the stress of having what adds up to
a second mortgage.
Just on a $40,000 loan at 7% your going to be spending approx $300 a
month
on interest alone. Depending on where you fly out of that can be 3-4
hours of
flying a rented airplane per month not to mention the principle
payment.
I agree with buying an aircraft but a15 year loan would scare me.
Lou

[Kirk Ellis]

On Sun, 11 May 2008 05:23:15 -0700 (PDT), Lou >
wrote:

>
>> > Is it possible to get a 15 year or even a 20 year loan on a 30 yo
>> > plane?
>
>I just gotta ask. Why would you want a 15-20 loan on a 30 yr aircraft?
>The interest alone would darn near double the cost of the aircraft.
>Thats not even mentioning the stress of having what adds up to
>a second mortgage.
> Just on a $40,000 loan at 7% your going to be spending approx $300 a
>month
>on interest alone. Depending on where you fly out of that can be 3-4
>hours of
>flying a rented airplane per month not to mention the principle
>payment.
> I agree with buying an aircraft but a15 year loan would scare me.
> Lou

My preliminary fact gathering effort over the last few days has shown
me that my income is about $500 per month short of affording me the
opportunity to purchase an airplane. So close, yet so far away.

Rentals will be the future of this pilot's life until I take the last
flight out.

Thanks for the response.



Kirk
PPL-ASEL

[Vaughn Simon]

"Kirk Ellis" > wrote in message
...

> Rentals will be the future of this pilot's life until I take the last
> flight out.

Or partnerships, or clubs or...

But yes, renting is easier and cheaper for most of us "great unwashed".

Vaughn

[Lou]

On May 11, 12:48 pm, "Vaughn Simon"
> wrote:
> "Kirk Ellis" > wrote in message
>
> ...
>
> > Rentals will be the future of this pilot's life until I take the last
> > flight out.
>
> Or partnerships, or clubs or...
>
> But yes, renting is easier and cheaper for most of us "great unwashed".
>
> Vaughn

I belong to a club now and it's fine, however I believe I would fly
more if I had 1 but
not more than 2 partners.
Lou

[Larry Dighera]

On Sun, 11 May 2008 17:48:57 GMT, "Vaughn Simon"
> wrote in
>:

>
>"Kirk Ellis" > wrote in message
...
>
>> Rentals will be the future of this pilot's life until I take the last
>> flight out.
>
> Or partnerships, or clubs or...
>
> But yes, renting is easier and cheaper for most of us "great unwashed".
>

Shared ownership, be it a partnership or Las Vegas/Delaware
corporation, is the most advantageous means of aircraft ownership,
unless there is some reason one needs exclusive access to the aircraft
and flies enough hours to justify exclusivity. For the average pilot
who flies 100 to 200 hours a year (~2 to 4 hours a week), sharing the
fixed costs of ownership among 3 to 5 co-owners reduces costs
dramatically, and doesn't really impact aircraft availability
significantly. Finding compatible pilots is the key to success in
this situation, so an urban location will provide a larger pool of
candidates and increase the probability of finding compatible
comrades. Personally, I find myself and two additional "partners" to
be ideal; your fixed costs (hangar, insurance, engine rebuild,
inspections, maintenance, upgrades, personal property tax, ...), which
comprise the greatest portion of the cost of aircraft operation, are
slashed to 1/3rd, and you've got flying buddies to share aviation with
in the bargain.

[Lou]

On May 11, 1:08 pm, Larry Dighera > wrote:
> On Sun, 11 May 2008 17:48:57 GMT, "Vaughn Simon"
> > wrote in
> >:
>
>
>
> >"Kirk Ellis" > wrote in message
> ...
>
> >> Rentals will be the future of this pilot's life until I take the last
> >> flight out.
>
> > Or partnerships, or clubs or...
>
> > But yes, renting is easier and cheaper for most of us "great unwashed".
>
> Shared ownership, be it a partnership or Las Vegas/Delaware
> corporation, is the most advantageous means of aircraft ownership,
> unless there is some reason one needs exclusive access to the aircraft
> and flies enough hours to justify exclusivity. For the average pilot
> who flies 100 to 200 hours a year (~2 to 4 hours a week), sharing the
> fixed costs of ownership among 3 to 5 co-owners reduces costs
> dramatically, and doesn't really impact aircraft availability
> significantly. Finding compatible pilots is the key to success in
> this situation, so an urban location will provide a larger pool of
> candidates and increase the probability of finding compatible
> comrades. Personally, I find myself and two additional "partners" to
> be ideal; your fixed costs (hangar, insurance, engine rebuild,
> inspections, maintenance, upgrades, personal property tax, ...), which
> comprise the greatest portion of the cost of aircraft operation, are
> slashed to 1/3rd, and you've got flying buddies to share aviation with
> in the bargain.

I agree, the only reason that I'm looking into a partnership is that
as
a member of a club, I can almost never get a plane long term. So
if I want a plane for the weekend or a week of travel I have to book
months in advance. I'm only assuming that with 1 or 2 partners, that
it would be easier to just grab the plane and go.
Lou