Hank Posted June 1, 2019 Report Posted June 1, 2019 52 minutes ago, Bob_Belville said: There's one somewhat subjective factor... it is less painful when you're not able to fly for a month or two if there isn't a loan payment every month to rub salt in your wound. Just hangar rent and GPS data charges . . . . Plus 1/12 of an annual inspection. Quote
Bob_Belville Posted June 1, 2019 Report Posted June 1, 2019 1 minute ago, Hank said: Just hangar rent and GPS data charges . . . . Plus 1/12 of an annual inspection. Well, only the hangar bill hits you every month. Annual expenses get compared to annual hours. Quote
M20F Posted June 1, 2019 Report Posted June 1, 2019 If you can qualify for Wings Financial membership they do 5.49%. https://www.wingsfinancial.com/loan-rates I have a 20yr note on mine at 3.8% through them, about the only good financial boon I have had in aircraft ownership. Quote
Yetti Posted June 1, 2019 Report Posted June 1, 2019 On 5/30/2019 at 11:52 AM, gsxrpilot said: I tend to agree with the sentiment... although there is no indication here that the OP "can't pay cash". There are many good reasons to borrow the money for example borrowing at a lower interest rate to keep the cash in a higher performing investment. Armatures. Get your brokerage account to add a margin account to it. Sell the security. Purchase the plane. Repurchase the security(s) using the margin dollars. Be sure that you are running a business of trading stocks. Write off the interest as a trading expense. Bonus points for getting the account listed as Mark to Market. 2 Quote
Raptor05121 Posted June 1, 2019 Report Posted June 1, 2019 (edited) On 5/30/2019 at 11:32 AM, NJMac said: For the right rate I'll lend you the funds. Hate to say this and poo on your thread. For *strictly personal usage*, If one cant pay cash for the plane, they probably shouldn't be owning. Sent from my SM-G930V using Tapatalk So basically pooey to anyone under the age of 45 owning a plane. I reject your reality and substitute my own. I got 0% APR for 48 months and just did a balance transfer and got another 48 months at 0% APR on my plane. Probably wont work for a $150k Ovation, but for a vintage shortbody, a personal line of credit via most local banks or in my case, CapitalOne, works just fine. No lien holders, no scanning logbooks, no hassle. As was stated earlier, its much better to keep cash in a higher earning line of interest right now. I'm dumping all of my spare cash into my 401K and Roth IRAs with the returns I saw last year, is a no-brainer. Edited June 1, 2019 by Raptor05121 6 Quote
Yetti Posted June 2, 2019 Report Posted June 2, 2019 When you are old enough to own a plane, you are too old to get a medical 3 2 Quote
NJMac Posted June 2, 2019 Report Posted June 2, 2019 So basically pooey to anyone under the age of 45 owning a plane. Not really. I was 33 when I paid cash for my E and all the panel upgrades. Anything is possible, just like your creative financing. Nothing against it, it's clearly working for you. Just saying that sound financial guidance used to say that cash for toys is best. This world is rejecting and turning sound wisdom on its head. So at this point, let's just agree that anything goes. Sent from my SM-G930V using Tapatalk Quote
Shadrach Posted June 2, 2019 Report Posted June 2, 2019 (edited) 3 hours ago, NJMac said: Not really. I was 33 when I paid cash for my E and all the panel upgrades. Anything is possible, just like your creative financing. Nothing against it, it's clearly working for you. Just saying that sound financial guidance used to say that cash for toys is best. This world is rejecting and turning sound wisdom on its head. So at this point, let's just agree that anything goes. Sent from my SM-G930V using Tapatalk Is NJMac short for Mac Davis? Your posts make me think of his iconic song: Oh lord it’s hard to humble when you‘re... An airplane is not like a jet ski or a 4 wheeler or a bass boat or any number of other things that I would call a toy. While it’s a depreciating asset from an accounting perspective, a well maintained C model is not likely to lose value like a typical toy. The most challenging thing about airplane ownership for me are the surprise expenses. One needs to be able to write a check for $10K or more on short notice. Taking out a note on an Aircraft so that you can keep more money in reserve for unknowns is actually quite conservative. The most important thing is that the asset maintain its value. Say after two years he decides airplane ownership is not for him. When he sells he’s out the stream of payments and maintenance and operating costs. There is nothing irresponsible about keeping money in a place that is interest bearing and more liquid then an airplane. I agree with some of your points but you’re answering a question that no one has asked in a way that is a bit self congratulatory. I hate to say it indeed... Edited June 2, 2019 by Shadrach Quote
NJMac Posted June 2, 2019 Report Posted June 2, 2019 Is NJMac short for Mac Davis? Your posts make me think of his iconic song: Oh lord it’s hard to humblewhen you‘re... An airplane is not like a jet ski or a 4 wheeler or a bass boat or any number of other things that I would call a toy. While it’s a depreciating asset from an accounting perspective, a well maintained C model is not likely to lose value like a typical toy. The most challenging thing about airplane ownership for me are the surprise expenses. One needs to be able to write a check for $10K or more on short notice. Picking out a note call Aircraft so that you can keep more money in reserve for unknowns is actually quite conservative. The most important thing is that the asset maintain its value. Say after two years you decided airplane ownership is not for him. When he sells he’s out the stream of payments and maintenance and operating costs. There is nothing irresponsible about keeping money in a place that is interest bearing and more liquid then an airplane. I agree with some of your points but you’re answering a question that no one has asked in a way that is a bit self congratulatory. I hate to say it indeed... Not meant to be that way. Ill bow out Sent from my SM-G930V using Tapatalk Quote
Jerry 5TJ Posted June 2, 2019 Report Posted June 2, 2019 (edited) If you want an airplane, buy one. Flying is a great privilege. Best luck. Edited June 2, 2019 by Jerry 5TJ 2 Quote
thinwing Posted June 3, 2019 Report Posted June 3, 2019 I agree...and if there is a legitimate business use...than depreciation rules will take care of the interest on the loan Quote
madjano Posted June 4, 2019 Report Posted June 4, 2019 First Pryority Bank, Doug Smith. Mike Jacob's was the president and Mooney driver. They know what their doing and know vintage mooney's worth.Sent from my SM-G930V using Tapatalk 1 Quote
Shadrach Posted June 4, 2019 Report Posted June 4, 2019 8 hours ago, madjano said: First Pryority Bank, Doug Smith. Mike Jacob's was the president and Mooney driver. They know what their doing and know vintage mooney's worth. Sent from my SM-G930V using Tapatalk I thought you were spelling phonetically until I looked it up! Quote
Bob_Belville Posted June 4, 2019 Report Posted June 4, 2019 I bought my first Mooney at age 34 financing it through a bank for 5 years. I averaged 250 hours per year for 11 years, 90% business. When at 68 and long retired I bought my 2nd Mooney. I used cash for the initial purchase and for all the improvements. I now fly ~75 hours a year, zero percent business. I think I did it the right way both times. 3 Quote
madjano Posted June 4, 2019 Report Posted June 4, 2019 I thought you were spelling phonetically until I looked it up! Yup, Pryor, Oklahoma.Sent from my SM-G930V using Tapatalk 1 Quote
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