Glider Financing

Apparently it's difficult to obtain financing on pricey glider toys whose
owners rarely default when financing actually was available and obtained. I
agree this is a(n unfunny) ludicrous situation and definitional business
opportunity in our declining bastion of free market competition.

But - apologies up front for thread drift - all seems not yet lost.

Today's mail included a flier from Dell in which I learned I can finance a
$3,200.00 computer, pay only $96 per month, and actually own the computer in...
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.. ...*31 years* with a total cash outlay of only $15,903.22. Is America a
Great Country or what?!?

Bob - sorry Noel, it was too good to not share! - W.

On Tuesday, June 11, 2013 1:06:39 PM UTC-6, noel.wade wrote:
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

Noel, I think the only thing AOPA/EAA will do is cut off glider loans in hopes we come to our senses and start flying airplanes. The airplane guys just think we're weird. A far better business relationship would be with a bank who finances jet skies.

LCSB Loan terms:

7 years, 8% - 10% fixed rate
OR
7 years, variable interest at Prime + ~3.5% (currently just over 6%).

I'm sorry, but this is crap compared to airplane finance companies who
are offering 7-15 year terms (20 years if you buy something "big") and
_fixed_ interest rates in the 4% to 6% range.

Personal loans from Banks and Credit Unions are typically in the 6% -
10% range and up to 5 years (with 7 years available in a few cases).

Sooooo, LCSB is charging what you'd expect for an unsecured (personal)
loan but they get the benefit of having collateral (and the buyer has
the hassle of a lien on the title to manage). They seem like nice
people at LCSB, but really this is _NOT_ a good deal for buyers at
all.

--Noel

On 2013-06-11, Bill D wrote:

Noel, I think the only thing AOPA/EAA will do is cut off glider
loans in hopes we come to our senses and start flying airplanes.
The airplane guys just think we're weird. A far better business
relationship would be with a bank who finances jet skies.

What's a jet sky?


--

Rob Brown