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#1
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Glider Financing
A Long long time ago I approached my employers Credit Union to finance a Sailplane. This well known Seattle Aircraft Manufacturers Credit Union bluntly told me that they don't finance Aircraft.....
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#2
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Glider Financing
Paul, that's funny.
Since then they do now finance aircraft, but not sailplanes. It was really kind of funny because the Everett Branch had a sailplane hanging in the lobby with a picture of it flying down below and an advertisement saying that they now offer aircraft financing. I pursued them for my first glider purchase and got as far as the question "How much horsepower?" and when I said zero, they looked at me weird, and said they don't finance aircraft without engines. I tried to call them out on it's still an aircraft per the FAR's, and you advertise aircraft financing. My honest guess is they are using prepackaged financing software where the horsepower of the aircraft somehow relates to it's value, and when they can't put a number in it, they just freak. -Kevin |
#3
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Glider Financing
On Tuesday, June 11, 2013 12:09:08 PM UTC-5, Kevin Finke wrote:
Paul, that's funny. Since then they do now finance aircraft, but not sailplanes. It was really kind of funny because the Everett Branch had a sailplane hanging in the lobby with a picture of it flying down below and an advertisement saying that they now offer aircraft financing. I pursued them for my first glider purchase and got as far as the question "How much horsepower?" and when I said zero, they looked at me weird, and said they don't finance aircraft without engines. I tried to call them out on it's still an aircraft per the FAR's, and you advertise aircraft financing. My honest guess is they are using prepackaged financing software where the horsepower of the aircraft somehow relates to it's value, and when they can't put a number in it, they just freak. -Kevin you just need a motorglider... |
#4
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Glider Financing
Did we decide not to explore parterships or syndicates?
Back in '92 two of us sold our gliders (an ASW-19 and a G-102) and bought an LS-6a which neither of us could have afforded alone. With the sale of the two gliders, he was set and I had to add $500. We drove together from Denver to Chicago to pick up our purchase and we had a great time for the next 5 or 6 years. "Paul Cordell" wrote in message ... A Long long time ago I approached my employers Credit Union to finance a Sailplane. This well known Seattle Aircraft Manufacturers Credit Union bluntly told me that they don't finance Aircraft..... |
#5
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Glider Financing
Dan -
This is not about "ways to finagle glider ownership". It's about this being another barrier to entry in a sport that has too many already. It's about a ridiculous situation that doesn't exist for almost any other type of recreational vehicle. There is NO REASON why a person should be forced into any of these "alternate solutions", just to try to accomplish what any Joe-Schmoe can already do with a car, airplane, motorcycle, boat, or RV. --Noel |
#6
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Glider Financing
Bill D wrote:
On Tuesday, June 11, 2013 11:45:07 AM UTC-6, noel.wade wrote: It's about this being another barrier to entry in a sport that has too many already. It's about a ridiculous situation that doesn't exist for almost any other type of recreational vehicle. There is NO REASON why a person should be forced into any of these "alternate solutions", just to try to accomplish what any Joe-Schmoe can already do with a car, airplane, motorcycle, boat, or RV. --Noel Of course, you're right. You've hit on a obstacle to growth. So, what can we do about it? I don't think financial institutions "hate" us as much as they're ignorant of us. Like most people, they react negatively to things they don't understand. Lea County State Bank obviously thinks it's good business for them. That's something we might try to replicate through education of bankers. Given a workable plan, I'm sure the SSA Growth and Development Committee would consider undertaking the task. So what kind of terms does Lea County Bank offer? Do they do small loans? A friend of mine was looking at possibly buying a small taildragger 30k, and most banks said they don't do small loans. They would gladly loan him 80-100k but nothing small. Pete |
#7
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Glider Financing
On Tuesday, June 11, 2013 12:43:03 PM UTC-6, Bill D wrote:
On Tuesday, June 11, 2013 11:45:07 AM UTC-6, noel.wade wrote: It's about this being another barrier to entry in a sport that has too many already. It's about a ridiculous situation that doesn't exist for almost any other type of recreational vehicle. There is NO REASON why a person should be forced into any of these "alternate solutions", just to try to accomplish what any Joe-Schmoe can already do with a car, airplane, motorcycle, boat, or RV. --Noel Of course, you're right. You've hit on a obstacle to growth. So, what can we do about it? I don't think financial institutions "hate" us as much as they're ignorant of us. Like most people, they react negatively to things they don't understand. Lea County State Bank obviously thinks it's good business for them. That's something we might try to replicate through education of bankers. Given a workable plan, I'm sure the SSA Growth and Development Committee would consider undertaking the task. Answering my own post after a bit of research. There is the American Bankers Association with a publication, "ABA Journal".. Perhaps we have someone with enough financial credibility (John Cochrane?) to write an article about a new banking opportunity financing gliders. "No defaults in 50 years" sound pretty convincing to me. |
#8
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Glider Financing
So what kind of terms does Lea County Bank offer? Do they do small loans? A
friend of mine was looking at possibly buying a small taildragger 30k, and most banks said they don't do small loans. They would gladly loan him 80-100k but nothing small. Pete Peter - There are dozens of aircraft finance outfits around the country. Just Google "Aircraft Loan" and you'll find several. Or call AOPA and ask for their new aircraft finance division. They'll happily do loans of that size (as long as the airplane isn't registered as a glider). :-P --Noel P.S. I'm about to get a call back and an answer on LCSB's current terms. But when I checked a couple of years ago they were not all that good... |
#9
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Glider Financing
On Jun 11, 11:43*am, Bill D wrote:
On Tuesday, June 11, 2013 11:45:07 AM UTC-6, noel.wade wrote: It's about this being another barrier to entry in a sport that has too many already. It's about a ridiculous situation that doesn't exist for almost any other type of recreational vehicle. There is NO REASON why a person should be forced into any of these "alternate solutions", just to try to accomplish what any Joe-Schmoe can already do with a car, airplane, motorcycle, boat, or RV. --Noel Of course, you're right. *You've hit on a obstacle to growth. *So, what can we do about it? *I don't think financial institutions "hate" us as much as they're ignorant of us. *Like most people, they react negatively to things they don't understand. Lea County State Bank obviously thinks it's good business for them. That's something we might try to replicate through education of bankers. *Given a workable plan, I'm sure the SSA Growth and Development Committee would consider undertaking the task. Bill - My plan is to get all the details from LCSB and then go back to the AOPA Aircraft Finance guy. I'll lay it out to him and let him know that ANY aircraft finance company out there could dominate the market if they offered slightly longer terms or a 1% lower interest-rate than LCSB. We'll see where it goes. Personally, I don't think the SSA has positioned itself to have _any_ clout with banks or finance companies or anything; AOPA/EAA seem like a much better bet when it comes to this sort of issue. --Noel |
#10
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Glider Financing
On Tuesday, June 11, 2013 3:06:39 PM UTC-4, noel.wade wrote:
I'll lay it out to him and let him know that ANY aircraft finance company out there could dominate the market if they offered slightly longer terms or a 1% lower interest-rate than LCSB. Not that I think your plan would work, but helping to kill LCSB's glider loan business to get slightly better terms from a "big aircraft finance company" just so that big company can decide a few years later to STOP financing gliders sounds like the wrong plan. Big companies are rarely interested in small and shrinking opportunities. The status quo is better than no quo. |
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