aviation finance

[pdriussi]

Does anyone know where, or from whom, we can get finance for aircraft ( either RA or the bigger, predominantly older, flying brothers of ours?) engines, avionics, maintenance etc? I am interested to know, it is not at all like purchasing a car.

 

Do people out there have finance on aircraft that is not business finance?

 

Also what kind of management plan would be required for a syndicate?

 

How do you set up cross hiring of aircraft to schools?

 

And is it possible to have a plane and "lend" it to other members, license holders for a "cost of running" fee?

 

Mostly asking for interest sakes but am also interested in some day buying an aircraft and would like to know the best way to go about it, ... I know, front up with a sack full of 100$ bills totaling 80,000$ is always gonna be the best but ... as an alternative, what are the options?

 

Thanks

 

 

[jetjr]

I have finance through Westpac, but it is business based. I have been told to be careful to keep them happy as not many financiers will now touch aviation as theres been some massive losses in the last few years.

 

The problem in finance comes down to security - ie what will they get to sell if you stop paying them, and the aircraft itself just wont cut it now. This becomes a big issue on shared aircraft.

 

There are some finace brokers who advertise in flying mags and they can answer questions much better

 

Watch insurance when "lending" aircraft, it can double the premium or result in no cover. Some specify minimum pilot hours - like 200+!

 

Im confused as to why to insure a $80k RAA costs much more than a $200K GA aircraft.

 

 

[68volksy]

Just been through this process to buy an aircraft and cross-hire to a flying school. First broker (one of the big advertisers) stuffed up initial application and came back to us with the only option being to finance directly through them (the brokers directors) at a slightly ridiculous rate of interest.

 

Second broker was much better but we chose not to use the financier (bank of queensland) due to the increased insurance costs and requirement for a valuation. Increased the initial cost by over $5,000 (extra $1,000 per annum for insurance due to higher public liability requirements)

 

Ended up with a simple unsecured business loan.

 

We were told the financiers simply will not finance a personal aircraft purchase unless it's a "personal loan".

 

 

[johnm]

We originally got ANZ finance for an aeroplane - business loan secured against the house - they were very helpful

 

Having said that - 5 years ago - financial times were good and the place was booming .................. finance was easy to find ........................ compared to now, I'm sure

 

As an aside - I'm sure its an old saying ? - can't remember if it was a financier or insurer - they said "if it floats, farts or flys - we don't want anything to do with it" .................... !!!

 

JM

 

 

[FlyingVizsla]

Our local Elders agent used to say "If it floats, flies or fornicates ..." meaning boats, planes and bulls. Bulls you insure against shooting blanks, injury that prevents breeding, death, etc as they cost a small fortune to buy, sometimes more than the plane and the boat together and if they don't perform you can only sell them for pet meat (being too old and rank for humans).

 

Farmer Sue

 

 

[pdriussi]

Thanks guys,

 

for now I will just keep putting the coins in the jar and waiting ... hopefully not waiting for someone else to "find" my jar ...

 

 

[petetheprinta]

Keep buying the lottery tickets

 

 

[Guy s]

Keep buying the lottery tickets

Tried that, it dosn't work