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I am looking at financing my new A/C purchase and wondered if anyone has a recommendation. I am talkign to Dorr aviation and they quoted me 8.25% with a $375 Closing Fee (which covers a title search and an escrow closing with International Aircraft Title and Escrow).

Any recommendations for a reputable financing shop with perhaps better fees?

You might try Wells Fargo.

Gregg, if you can swing it a home equity loan is the way to go. The interest is tax deductible. I do this all the the time for cars, airplanes, engine overhauls, etc.

Geo.

Home equity is the way to go if you can do it for all the reasons George mentioned. Plus you can probably get a much better rate. I tend to do this for vehicles so I have the title in hand if I want to sell or trade it in. Come to think of it, I'm not sure how that affects aircraft. Would they be a lien holder listed on your registration or something? They must have some way of securing the loan if you use aircraft financing.

I've used home equity and highly recommend it. The lending institution will hold a second mortgage on the house, but isn't overly concerned about what you spend the money on. No liens on the car, airplane, boat, or whatever you use it for.

Don

Definitely, I used a home equity loan for mine (and a new motorcycle at the same time ) I was wondering what they hold in the case of using an airplane to secure a loan. We don't have titles like a car....right? At least I don't think I do.

I'll have to chime in also.... I did not find any lenders for my small amout for my 150; however my bank was willing to go an equity line. The home equity is the way to go if you have equity in your home. I now have my pickup paid, bills paid off, plane free and clear and the monthly payment is $100 less than my truck payment used to be. Just for 15 yrs instead of 5. And as mentioned above the interest you pay is tax deductible. Interest rate is less that the other loans also.

Bank of america (AOPA) was great. fast service they took care of the searches. I called Dorr (twice)But I wasn't looking for enough money to warrent a return phone call.
John

Yeah, I also used MBNA through AOPA. I checked with other agencies but they had a minimum of 25K. The local banks would not touch an airplane. MBNA was higher on the rate but they will go as low as 10K. Easy to do buisness with!

I've had good luck with AOPA, Bank of America.