@Anonymous wrote:
Hello, so I have been thinking of purchasing an ultralight aircraft kit lately (~$13,000) and I have "very good" FICO scores. I'm a bit stumped because my bank (Chase) considers an airplane a "luxury item" like a jet-ski. Even though by definition its a "vehicle" they do not do loans that are not automotive or mortgage. They told me to contact the local credit union about getting a personal loan. The Credit Union suggested that it be an unsecured loan until the plane is built, then transitioned to a secured loan. They mentioned their base rate was ~9%+, so what should I roughly expect? What about brand loyalty? This experience makes me want to leave Chase (who i've been with since WaMu) because they cannot work with me. Are Credit Unions better in general? Are personal loans just a ploy to attract loyal customers? Are online vendors better for this kind of thing? Since its very difficult to find personal loan details/calculators online (even myFICO doesn't offer much about it) I thought I would ask here about other peoples experiences.
Thank you for your time and feedback.
By the strictest of definitions, correct. A train would also be a vehicle. A ship would be a vehicle. Good luck trying to finance such a "vehicle". Any financial institution has a right and obligation to shareholders to limit what sort of loans it's willing to make.
Yes. In general. However the word "better" is very subjective; it depends on factors that are important to each individual.
Do a Google search on "aircraft loans". You'll come up with a variety of lenders that may suit your needs. The kind of loan you're looking for, along with to a lesser extent, motor homes and travel trailers, are very specialised; not all lenders will provide them. When I financed my travel trailer, I had to search for lenders who would lend on such a "vehicle" -- not all do. I found a specialisation lender who got me a decent rate and terms.
