Air & General Finance
A few years ago it would have been almost impossible to finance an aircraft kit of any kind for any purpose. Today it may be possible as more financial institutions jump on board to cater to homebuilders. To find these institutions it is recommended to attend one of the EAA's major airshows near your area. In the vendor areas at the airshows you can usually find and speak to representatives of companies that have aircraft financing terms. As of this writing the Aircraft Owners and Pilots Association (AOPA) www.aopa.org and EAA www.eaa.org have financing options for their members so you may want to check them out directly.
Some other options toward a loan is a home equity loan or loan against some other valuable. Keep in mind the bank or financial instituion is trying to ensure some form of equal value equity is available should the loan default. A partly built kit is of little value to the financial company.
A signature loan may be all you need depending on the kit cost and what you qualify for. This form of financing will require good credit and will have a higher rate of interest over a home equity loan. Check with the credit unions as well as regular banking institutions. Shop and compare rates and terms. This may be a very good option to get you into your own gyroplane kit.
Put it on a card. Unsecured lines of credit or credit cards are an option but they tend to have even higher interest rates than signature loans. I think unsecured lines of credit are better suited for items of lesser value like radios or pilot supplies and the like than a kit. The interest can really hurt you financially if you are not careful but for some people this may be their preferred method of payment or a quicker means to secure a kit at an airshow price until the funds can be moved from one account to pay off the balance of the credit card purchase at the first billing. Just be careful.
Another option is to purchase the kit in sub-kits rather than as a complete kit. By purchasing sub-kits as you can afford them will free you of any interest charges or putting anything up for collateral toward a loan. You may end up paying more in the long run in shipping charges but those costs may offset any interest that would have to be paid in a loan.
Keep in mind any payments remaining after construction of the kit is completed should be added to the direct operating costs of the gyroplane. Since this will be a monthly expense for you to keep your aircraft it must be factored into the direct operating costs. Depending on the kit cost and remaining balance your DOC's per flight hour can really start to soar.
So there are options available and there are other creative financial ways to fund your project but take the time to make a financial plan to fund your project so it is an enjoyable adventure and not a financial burden that you may dread. Be as passionate toward your money as you are toward your flying and you will be fine.
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