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Experimental loan

R

Rancher 15

Registered User
Hey guys. New member here just looking at buying my first plane. A sportsman 2+2. I have the money to buy it but it would leave my pocket drained enough that I couldn't afford maintenance and repairs for a while. Is there anyone out there that does experimental aircraft loans. I called a few but they all want certified planes. Thanks
 
I bet if you talk to insurance agents that do experimental, they will know which lenders they are dealing with...
 
Thanks. I'll talk to my insurance guy and see if they deal with experimentals. Trying to get in the air but certified planes seem very expensive to maintain.
 
NAFCO ... I did 3 experimentals with them a decade or so ago.. easy to deal with .. they are a division of Republic Bank and keep loans in house...
Back when I dealt with them they were the only ones.. everyone else was brokering thru them...
You might call EAA too..
 
Phone a friend, if your going to give interest money to someone give it to a friend. I've financed 3 that way

Glenn
 
I've been lucky / smart enough to have flat-out purchased all 4 of my airplanes.
I still think that's the best way to go, but you make a good point about needing something left over for maintenance & repairs.
Any way you coud finance it with a home mortgage or second mortgage?
I believe you could then write off the interest.
Plus
I've heard of enough issues with lien releases not being properly filed with FAA when loans are paid off that I'd be nervous about that.​
 
Rancher 15 said:
Thanks. I'll talk to my insurance guy and see if they deal with experimentals. Trying to get in the air but certified planes seem very expensive to maintain.
Click to expand...

The idea that maintenance will be less expensive with an experimental isn’t a good foundation for choosing an experimental. Airplane ownership is expensive. There’s no easy way around that. The best way to assure lower maintenance costs is to buy an airplane that’s been well maintained. Exp vs Certificated isn’t indicative of that, but purchase price usually is.
 
I would agree with that. Paying for stc's is mainly what I'm talking about. when it cost 2Grand for a simple part plus stc's and it's something that I can make in my shop on my lathe or mill in an afternoon that's just ludicrous to me. I don't know about you guys but I hate bureaucracy. This Plane will be used on a cattle ranch in Montana and I simply wanted a big enough one to fly my kids with me that still had decent short field performance. Otherwise I would get a regular cub.
 
If you’re just worried about cash flow for improvement and repairs look into a simple line of credit at your local bank or credit union for short term use, likely a little higher interest but there simple and you only pay for what you use and for the duration you use it.
 
I bought a plane using an unsecured loan through Lightstream. The interest was the same or lower than through a bank, and I didn’t have to fool with underwriters worried about the value of the plane and whatnot. Great experience and I’d do it again.
 
Wings credit union does them. They go by wings financial now. Very reasonable rates too. Just looked. They are up to 5.49% now. Still not bad. I financed a Lancair IVP years ago there.


Sent from my iPhone using Tapatalk
 
AOPA will finance a select few experimentals. If you are talking about a Glasair Sportsman, that’s one of them.

i researched some finance options for an experimental last year.

The lender will do a market analysis. They will look to see what other like models have sold for before they will lend.

I was happy with the interest rate that AOPA quoted.
 
Last edited:
Yes. I talked to the guys at airloan.com and the guys at lightstream both look like good options but lightstream has a little better rate if you have good credit and it's an unsecured loan to boot. So no lean on the aircraft. That's the way I understand it. So that's what I'm leaning towards. However im going to apply both places to see which is best for me.
 
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