Sport Pilot Talk

Thanks to all for contributing to this informative discussion board.

I have been trying to obtain financing for a LSA purchase and am finding it extremely difficult, even with a perfect high-score credit rating and a decent down payment.

The problem is that finance companies do not want to finance LSA due to:
- limited production
- no reliable independent valuation method
- uncertain resale market

Why is it so bad?
Why wouldn't they finance LSA with a huge 50% down payment?
Is the LSA market going to die?
Is the FAA going to void the license / class type?
Aren't there always going to be pilots getting older that fear loosing their medical?
Aren't there people who find what they like in an LSA, that can not be found in non-LSA aircraft?
Aren't there quality LSA aircraft out there that will have a good service life, reasonable depreciation, and fair resale values?
Will there not be buyers for reasonably priced LSA used aircraft?

and the big question...
Isn't there SOME PLACE to get fair & reasonable LSA financing for well qualified buyers?

Thanks!

Financing and insurance varies with the manufacturer.

You should have less trouble with one of the more established/higher production manufacturers.

Plus the credit market is pretty well fouled up. Remember, GMAC wouldn't even finance their own cars for a while.


You might try:

Lezonne Hertz
AirFleet Capital, Inc.
1005 Sycolin Road, 2nd Floor
Leesburg, VA 20175
800-390-4324
703-777-3854 (fax)
[email protected]
www.airfleetcapital.com

Bill Horn, President
8840 E. Sunland #178
Mesa AZ 85208
Toll-free: 877-zookair (966-5247)
Phone: 480-354-5746
Fax: 480-357-2398
[email protected]

Or try US Aircraft finance: http://www.usaviationfinance.com/.

They underwrite their own loans so the decision is with the individual you deal with.

Thanks to all for the leads. Will post more feedback shortly.

Airfleet is just a broker, and usually places loans with BofA...you should check with them directly.

After contacting the leads here and others, here is what I found.

If you are trying to finance a low-volume, non-bluebook, used, even very low hour, LSA forget it. The finance companies will not accept the plane as collateral no matter how much you are willing to put down, or how high your credit rating is. However if you are trying to finance a new higher production LSA that is in the blue book you might get financing.

Thanks again to those who offered assistance here.

I just financed a new Tecnam Eaglet through BofA/AOPA. I was pre approved for about 80% of the total cost, although I made a larger down payment. It was easy. All done via internet, phone, e mail, and lots of faxes. More complicated than financing a car--more like a documented boat. Took about 2 weeks. Having the Feds involved always adds a layer of complexity.

I just got approve through the AOPA financing program. I got 6.75% on a $50000 loan and 7.1% on a $25000 loan with 15% down.

-Mark

Isn't there SOME PLACE to get fair & reasonable LSA financing for well qualified buyers?

By any chance do you have some home equity you could borrow against?

Great rates right now if you do.

Isn't there SOME PLACE to get fair & reasonable LSA financing for well qualified buyers?

By any chance do you have some home equity you could borrow against?

Great rates right now if you do.