On 10 Feb 2004 04:51:58 -0800 (Mike Long) wrote:

Jet Dollars will do 15 years at 4% variable, balloon at 5 years, 10%

Variable would be dicey right now, looks like rates may go up.
What percentage is the balloon?



down. Their service is good and the owner's a nice guy.

The reason for the shorter amortization term with a leaseback is that
maintenance will usually get too expensive in a leaseback environment
with an older plane. So, it makes sense at some point to trade the
existing aircraft for a new or newer one. If you have a 20 year loan
and decide to do this in 2 or 3 years, you're upside down. At 12-15

I'm not sure I'm following you. are you assuming that the plane's value
will depreciate? and then after 2-3 years the amount on the loan is more
than the value of the plane? But with the shorter term loan you've paid
more down more?

years you are in a much better position. This has been especially true
since 2001 with the economy hurting and the resale market just
beginning to rebound.

The resale market looks stagnant to me but I'm only looking at piston singles.


Consider carefully before doing 20 years with a leaseback - it can be
painful later.

It really depends on how much the plane flies/month. If the plane is in the
air then everything can work out. With $300-400 month payments it's not
a huge burden if something does go foul.

Thanks.

R. Hubbell


Mike

"R.Hubbell" wrote in message ...
Calling all owners that leaseback a plane to a club or FBO or ??

I have found that financers offer different loans depending on
the who uses the plane. For a club they want 10 years or less
but for private they will finance up to 20 years. Maybe I just need
to keep looking. I don't quite undertand why they would care as
long as they get paid.

So if you are leasing a plane back what kinds of loans were you
able to get?


The 20 year loans are ideal for so many reasons.

R. Hubbell