New Twist on the Question of Logs and Damage History

Fearless Tower

Fearless Tower

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Fearless Tower
Discovered something new today: Damage History and full logs apparently matters to banks when applying for financing.

Seems a bit silly, but I suspect banks are afraid of getting stuck with an airplane that they might have trouble selling.

If anyone knows of an aircraft financing company that doesn't require NDH and full logs, please let me know.
 
Damage history is fairly meaningless if it has been appropriately repaired and that repair documented. I would think a lender who deals with aircraft financing would know that.
 
SkyDog58 said:
Damage history is fairly meaningless if it has been appropriately repaired and that repair documented. I would think a lender who deals with aircraft financing would know that.
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I agree with you, especially when the damage occurred in 1965 and the airplane has flown several decades since. But the lender doesn't seem to think that way.
 
I don't know what bank you're using but all the BofA guys AOPA recommends (this is the same office that was at various times MNB, Nations Bank, MBNA, etc...) all they wanted was a blue book value for the airplane. If they could get one, then they'd loan the money.

My aircraft was already 45 years old when I financed it. It had been damaged a few times that there was history of (and a few times when it wasn't really made historical).
 
Not sure if these guys require it or not, but I have done both my aircraft loans with them and have found them to be great to work with.

Small bank in Rural Minnesota, that has an aircraft loan business.

http://www.airloan.com/

Flav
 
Sound like the bank is used to financing cars, and is stuck in that mindset
 
A buddy of mine just financed a Grumman Traveller with two major damage events early in its life and the bank (through NAFCO) didn't care one bit.
 
Fearless Tower said:
Discovered something new today: Damage History and full logs apparently matters to banks when applying for financing.

Seems a bit silly, but I suspect banks are afraid of getting stuck with an airplane that they might have trouble selling.

If anyone knows of an aircraft financing company that doesn't require NDH and full logs, please let me know.
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okay. what are you buying now?:dunno:
 
Twin_Flyer said:
okay. what are you buying now?:dunno:
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Probably going to be putting the Baron on the market and moving up to a Beech 18. Trying to weed the flat engines from my heard.

Haven't settled on a specific one yet (looking at a couple options). I am not normally a big fan of financing, but may do it temporarily if the right airplane comes along before the Baron sells.

Problem with Beech 18s is finding one without some damage history.
 
I don't have a lot of experience with AC loans but it seems ridiculous to think they *would* finance a 70-80 year old plane ONLY if you have NDH, or even complete logs at this point.

Try Dorr aviation. I am working with them on re-financing our Dakota into our LLC. Seem like good people.
 
ChemGuy said:
I don't have a lot of experience with AC loans but it seems ridiculous to think they *would* finance a 70-80 year old plane ONLY if you have NDH, or even complete logs at this point.

Try Dorr aviation. I am working with them on re-financing our Dakota into our LLC. Seem like good people.
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Part of it may be related to the terms and rate.

It can be more challenging to finance antique airplanes and warbirds. Most of the finance companies I have seen that will do warbird/antique financing want 30% down no more than 15 years and rates 6.5-7.5%.

The company I am working with at the moment is willing to do 20 years at 4.3% and only 20% down.
 
Fearless Tower said:
Part of it may be related to the terms and rate.

It can be more challenging to finance antique airplanes and warbirds. Most of the finance companies I have seen that will do warbird/antique financing want 30% down no more than 15 years and rates 6.5-7.5%.

The company I am working with at the moment is willing to do 20 years at 4.3% and only 20% down.
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Jebus!

Would you really want to carry GA airplane debt for TWO DECADES?
 
James331 said:
Jebus!

Would you really want to carry GA airplane debt for TWO DECADES?
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Of course not. The only reason I am looking at financing is if the right airplane appears before the current airplane sells. I expect that I'll have the loan paid off in a year.

BUT, 20 year financing makes a significant reduction in the monthly payment while waiting for current plane to sell.
 
I have never actually flown a Beech 18 or even flown in one but have always thought they were cool looking planes. Good luck!
 
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