Does anyone know of a lender for the 501SP?

Try Dorr

Patrick Fallon
Dorr Aviation Credit Corp., LLC
579 Pleasant St., Suite 4
Paxton, MA 01612
Main Phone - 508-731-6450
Toll Free - 800-214-0066
Direct Phone - 508-731-6452
Main Fax - 508-363-1700
www.dorraviation.com

Also try your local banking relationship. Has worked for me several times. They don't know much about airplanes, but they know me.

+2 on Dorr thats who we are with.

We work with Patrick Fallon at Dorr

Mike

Thanks gents.

@Pyle - do you know if they require an engine program / TAPS?

I’ll give the local guys a try. My problem there is its Chase bank.

In my experience, when times have been tough for over 30 years, NAFCO or their predecessors came through; Airloans.com. The bank knows, of course, that cash is preferred for a 40+ year old jet that can burn over $30k in fuel alone for 20 hours in a month.

Not sure. Mine is on program but never asked if they will do without. I wanted to find a plane on program and only tried to finance that.

I also had my previous 421 with Dorr so that helped.

Mike

No stock 501 is on an engine program that I know of. I seriously doubt any are.

The FJ44 converted ones, Stallions and Eagle II, are generally on an engine program, though there are exceptions.

If the bank requires an engine program, then they aren't lending money on stock 501s.

I expect that if the loan to value reflects engine status, then I expect they won't care about an engine program, but this is speculation.

I would wonder about someone buying a $500K airplane, which might cost $150K/year to fly ~100 hours or so, and not having enough money to buy it outright. Is there enough cash reserve to deal with unexpected events?

Mike C.

No stock 501 is on an engine program that I know of. I seriously doubt any are.

The FJ44 converted ones, Stallions and Eagle II, are generally on an engine program, though there are exceptions.

If the bank requires an engine program, then they aren't lending money on stock 501s.

I expect that if the loan to value reflects engine status, then I expect they won't care about an engine program, but this is speculation.

I would wonder about someone buying a $500K airplane, which might cost $150K/year to fly ~100 hours or so, and not having enough money to buy it outright. Is there enough cash reserve to deal with unexpected events?

Mike C.

Given aircraft interest rates these days, a bit of a gamble.

I suspect aircraft rates have to be mortgage rates plus 2% or so, right? 15 year mortgage rates at ~6.5% now, so maybe 8.5% for an aircraft loan?

This is another reason to find lower hull value airplanes to buy even if the operating costs are higher per hour. A $400K loan on a 501SP is $34,000 per year. A $1.2M loan on a Meridian is $102,000. That difference buys a LOT of fuel!

Mike C.

Most people don't look at it that way Mike C. If they can afford the monthly payment & put fuel in it . It's affordable.