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 Post subject: 501SP Financing
PostPosted: 05 Mar 2023, 19:29 
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Joined: 10/23/11
Posts: 736
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Company: AWM
Location: Houston Texas
Aircraft: Piper Meridan
Does anyone know of a lender for the 501SP?


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 Post subject: Re: 501SP Financing
PostPosted: 05 Mar 2023, 21:15 
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Joined: 05/05/09
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Aircraft: G44, C501, C55, R66
Username Protected wrote:
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


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 Post subject: Re: 501SP Financing
PostPosted: 05 Mar 2023, 21:22 
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Joined: 08/13/20
Posts: 194
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Location: KLOU/KJVY
Also try your local banking relationship. Has worked for me several times. They don't know much about airplanes, but they know me.

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 Post subject: Re: 501SP Financing
PostPosted: 05 Mar 2023, 21:27 
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Joined: 11/19/15
Posts: 1400
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Company: Centurion LV and Eleusis
Location: Draper UT KPVU-KVNY
Aircraft: N45AF 501sp Eagle II
+2 on Dorr thats who we are with.

We work with Patrick Fallon at Dorr

Mike

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 Post subject: Re: 501SP Financing
PostPosted: 05 Mar 2023, 21:38 
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Joined: 10/23/11
Posts: 736
Post Likes: +128
Company: AWM
Location: Houston Texas
Aircraft: Piper Meridan
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.


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 Post subject: Re: 501SP Financing
PostPosted: 05 Mar 2023, 23:15 
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Joined: 08/09/11
Posts: 1726
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Company: Naples Jet Center
Location: KAPF KPIA
Aircraft: EMB500 AC95 AEST
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.


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 Post subject: Re: 501SP Financing
PostPosted: 06 Mar 2023, 01:25 
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Joined: 11/19/15
Posts: 1400
Post Likes: +1203
Company: Centurion LV and Eleusis
Location: Draper UT KPVU-KVNY
Aircraft: N45AF 501sp Eagle II
Username Protected wrote:
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.


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

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InstaGram @Mtpyle company @CenturionLV @eleusisdigitalcanvas race team @strappedracing


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 Post subject: Re: 501SP Financing
PostPosted: 06 Mar 2023, 01:50 
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Joined: 12/03/14
Posts: 19252
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Company: Ciholas, Inc
Location: KEHR
Aircraft: C560V
Username Protected wrote:
do you know if they require an engine program / TAPS?

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.

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Email mikec (at) ciholas.com


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 Post subject: Re: 501SP Financing
PostPosted: 10 Mar 2023, 12:45 
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Joined: 07/17/15
Posts: 530
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Location: KSRQ
Aircraft: C510
Username Protected wrote:
do you know if they require an engine program / TAPS?

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.



Maybe they feel they can do better with their capital than they are paying the bank.
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 Post subject: Re: 501SP Financing
PostPosted: 10 Mar 2023, 13:54 
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Joined: 12/03/14
Posts: 19252
Post Likes: +23613
Company: Ciholas, Inc
Location: KEHR
Aircraft: C560V
Username Protected wrote:
Maybe they feel they can do better with their capital than they are paying the bank.

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.

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Email mikec (at) ciholas.com


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 Post subject: Re: 501SP Financing
PostPosted: 10 Mar 2023, 14:18 
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Joined: 01/17/21
Posts: 87
Post Likes: +42
Aircraft: C550
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.


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