Who is a good finance company???

[Bryon]

Where is the best place to finance the purchase of your first plane?????

 

What has been your experience of a finance company? good or bad!!!

 

Tell me, so we all can find out

 

 

[facthunter]

Best finance.

 

Use the redraw facility on your house loan. This is available generally If your payments are ahead of schedule. Loans are cheaper if you have asset backing, which means that you have to mortgage an asset or put a 'lean" on it. I would make the comment that aeroplanes are not a good investment generally and the costs do not end with the purchase payment. IF you have to borrow to buy one I would suggest you can't afford it. If the plane is used as a tax deductable item, document ALL costs. Mortgages cost money to set up and exit. There is already one on your house (most likely as the bank would have the right to sell it if you default on payments). Nev

 

 

[Guest basscheffers]

Times two on that. Except that I don't agree with the "if you have to borrow you can't afford it bit." Just because you don't have the capital, doesn't mean you can't afford the cash flow. Like homes: renting is cheaper, owning is nicer.

 

If you have it in your home, use it. Lower interest rate and longer to pay it back - but no penalty for paying back early!

 

 

[Guest Maj Millard]

Mmmm....if you have to borrow you can't afford it ?................don't know about that, it's ok to think that way until the absolute one-time only deal of the century comes along, and you just have to have it !

 

I would agree that it's best not to borrow, as I had managed to do for 20 years or so. However I am dealing with a finance company now, don't like it at all, but I did get the aeroplane. If I knuckle down and pay the damn thing off in the next 12 months it will be mine !! And I didn't have to morgage against the house...............................maj...

 

 

[winsor68]

Mmmm....if you have to borrow you can't afford it ?................don't know about that, it's ok to think that way until the absolute one-time only deal of the century comes along, and you just have to have it ! I would agree that it's best not to borrow, as I had managed to do for 20 years or so. However I am dealing with a finance company now, don't like it at all, but I did get the aeroplane. If I knuckle down and pay the damn thing off in the next 12 months it will be mine !! And I didn't have to morgage against the house...............................maj...

I like... there is hope!

 

 

[Bryon]

Thanks Maj,

 

As a baby boomer, my problem is whether to cash in my appreciating assets for a depreciating asset or to borrow the money and write it off as a normal operating expense

 

Do I keep my money or spend it all and depend on the government for a living???

 

Oh, the dilemma of it all........

 

to spend or not to spend.......

 

To be a burden on society ....... or not?????

 

PS I am still working.... do I retire and live off the govt .....or do I keep paying my way

 

 

[Guest Walter Buschor]

Hi Brion,

 

I say to hell with the expense. You live once so if you can afford it now go for it. How many people drive big Cars worth the same or more than a plane and they depriciate in freefall. Most if not all owned by the bank.

 

If you can afford it . go for it. You deserve it!

 

 

[Riley]

As a baby-boomer, unless you're a deadbeat dropkick, a "refugee" or an unwed mother with four kiddies from four different donors, it's likely there'll be little left in the public coffers by the time you qualify for age-related government support (and then Centrelink will look for every reason to penalize you if you have managed to put something aside). So put a foot in both camps (like Nev says don't touch something you can't shake loose from if you hit a bad patch but, like Maj - if you can arrange to have your cake & eat it too on someone else's capital at a manageable cost, go for it. As an aside, how many of us remember the good /bad old days when the banks would loan you money only if you could prove you didn't need it? Cheers

 

 

[pudestcon]

As a baby-boomer, unless you're a deadbeat dropkick, a "refugee" or an unwed mother with four kiddies from four different donors, it's likely there'll be little left in the public coffers by the time you qualify for age-related government support (and then Centrelink will look for every reason to penalize you if you have managed to put something aside). So put a foot in both camps (like Nev says don't touch something you can't shake loose from if you hit a bad patch but, like Maj - if you can arrange to have your cake & eat it too on someone else's capital at a manageable cost, go for it. As an aside, how many of us remember the good /bad old days when the banks would loan you money only if you could prove you didn't need it? Cheers

Good one Riley, I'm with you,

 

"Have your cake and eat it too" translates to "Harvesting your equity to live off and buy stuff with". Banks will lend you for this purpose depending on how much equity you have and how much you want to use. Rule of thumb for you - on a yearly basis, use half the capital growth of your assets. That way the tactic is ongoing and self supporting. The catch - you need enough appreciating assets to start with.

 

The wonders of OPM - not that mind altering substance Opium, but a life changing strategy called "Other Peoples (the banks) Money.

 

Cheers,

 

Pud

 

 

[facthunter]

borrow can't afford etc.

 

That was only meant in the context of, "The costs don't stop with the purchase of the plane", so IF the first 100 hourly ends up costing more than the purchase price do you keep on borrowing? I have seen this happen, and the person ended up losing plenty. Aeroplanes are special things and are very capable of costiing huge dollars and your hourly costs can be many multiples of the hire rate. Don't underestimate the TOTAL costs. (including the interest on the borrowed money).

 

I prefer to buy and use a "bomb" car and go without other conspicuous affluence things to operate the plane. I've never been able to do both , and with a bit of luck and planning you will get plenty of unique and real experiences, when operating an aeroplane. Nev

 

 

[Guest basscheffers]

so IF the first 100 hourly ends up costing more than the purchase price do you keep on borrowing?

Something like a cracked crank case is my nightmares.

The best way to own an aircraft in my opinion is a syndicate. If that $15K repair bill for the engine does come one day, at least you can share it with 5 others.

 

Hence my current signature...

 

 

[dazza 38]

Something like a cracked crank case is my nightmares.The best way to own an aircraft in my opinion is a syndicate. If that $15K repair bill for the engine does come one day, at least you can share it with 5 others.

 

Hence my current signature...

I had a cracked crank case in a 0-360 Lycoming, just out of warranty (Hawker Blue seal). 12 years ago , it cost me $4500 back then.Things certainly pop up, in 100 hourlies.:black_eye:

 

 

[winsor68]

What about if the aeroplane is a $10 000-$20 000 cheapie... Much like buying a motorcycle really.