Has anywone used Cirrus Aircraft Financing? I realize that a home equity loan/line is probably the most desireable way to finance a Cirrus, but for cash flow reasons, I am taking a look at this program.
Just curious what others’ experiences have been.
Paul
Gee I’m glad you asked this question because I’m getting closer to needing to make that decision too. Frankly the Cirrus program didn’t seem any more special than AOPA or some others I looked at last year. I do recall that AOPA will lower the rate with “points”. I’m disappointed the rates haven’t come down with other interest rates.
Paul,
We looked into “Cirrus Aircraft Finance” about a year ago. They are actually a company known as “Cambridge Commerce” (www.cambridgecommerce.com) and are based in suburban San Diego. They didn’t know anything about aviation. They just acted as a middleman between the buyer and MBNA. The biggest disappointment was that it was hard to get them to take my partner’s royalty income (he is an author) seriously.
Perhaps there is someone out there with a positive experience?
Eventually, we just went with home equity.
Glenn
I used Cirrus finance last september for my SR22…and very pleasant and easy to deal with…competitive…using First Nat Bank of Clinton (MO)…if you can get over the name of the bank, it’s a good source (if they’re still available).
Searched and found your post on Cirrus Aircraft Finance. Am down to the wire with them for delivery on 6/24 of my SR22. Just got the documents and was surprised at the additional upfront first payment to CF (am a former banker). My contact doesn’t know where it goes and whether it is appied to the loan. He thinks its interest in advance which is very unusual. His manager is supposed to call me Monday. Just wonder what your eventual experience was or whether you went with someone else. Anyone else have experience?
Richard
We just refinanced with Zook. We were originally with MBNA. So far, so good with Zook. We managed to refinance at 6.75% with no points. I don’t know if that program’s still available–but it might be worth checking out.
Heath
1061 N157CD
Another alternative would be the use of investment accounts. Brokerage houses will lend money to qualified investors and the interest paid is tax-deductible. The money can be used for purchases such airplanes as well as purchasing stocks, bonds, etc. I am thinking seriously about this technique. My broker, Smith Barney is offering this at 0.5 percent over prime with no points, pretty good deal!
The biggest disappointment was that it was hard to get them to take my partner’s royalty income (he is an author) seriously.
Heck, I find it hard to take my income seriously.
In that case, dude, you can just write a quarterly check to the “Glenn Beltz Benevolent Fund.” You will respect my authority!
In reply to:
Heck, I find it hard to take my income seriously.
Roger,
I’ll take it. Seriously! [;)]
Mike.
In reply to:
Heck, I find it hard to take my income seriously.
Cirrus Design took your income, Cirrusly of course.
Margin borrowing works, however remember your collateral is re-appraised every minute the market is open with the possibility of a margin call.
Interest is only deductable to the extent of investment income.
Rates can and will vary with prime and the brokers own availability of funds, and the fed, or another gov agency, can and does change the margin rules based on their own criteria. ie they can say you need to put up a higher ratio of collateral to margin borrowing.
Just my 2 cents. I hope it is helpful.
Bob
It’s also my understanding that interest expense is deductable only if the proceeds of the loan goes toward an investment activity. Don’t think you could classify the Cirrus as an investment, at least I think it would certainly be a grey area.
Paul,
You are correct is your post about the ability to deduct interest. It does depend on the use. As a CPA myself, I’ll make you an honorary CPA until April 15!!
Gentlemen, thanks for the input. Not quite the same story I heard before. I will check this out. If I hear anything different I will post it here.
Ended up with NAFCO, Bill Leckie, 6.75% 20years, 1 point. Good experience with them.
Thanks. Do you have a phone number?
Richard
I have found them consistently higher, even after just getting “new lower rates” For example, 20 yrs fixed 8.49% whereas three others (including NAFCO) are 7.15% ! NAFCO phone number 800-999-3712 website www.airloans.com
I just sent in my app
Thanks. I will call them Monday. Maybe the first payment to CF is another way for CD to improve their bottom line.
Richard
Nafco worked well for me to. The bank was actual First Essex. Don’t know if you could get better rates if you went to them directly but NAFCO gave great service.
Jeff