Possible finance and insurance for used microlights.

[cutman]

Hi Guys,

I'm looking at the possibility to privately finance and insure used microlights. I would like to know what possible buyers think.

FLY SAFE
Cutman.[/b]

[GR8-DAD]

Hi Guys,

I'm looking at the possibility to privately finance and insure used microlights. I would like to know what possible buyers think.

FLY SAFE
Cutman.[/b]

If you only could know how many enquiries there has been on this forum for that possibility since most banks do NOT want to finance private or used microlight sales. Good luck. It will be a service that is just about non-existant at present.

[cutman]

I can't believe that I was the only guy that battled to buy a s/h microlight.I realy thought that there was a need for a service like that,but I obviosly have been so wrong.

[The Agent]

Better way to do it is to make a personal loan and then pay for it.
Do not prang it unless it is insured.
If the banks finance they want insurance.
Hope thast helps.

[cutman]

Hi Agent,
Yes I agree, you can make a personal loan but what if you don't qualify due to a slight shortfall or hickup that you have had with the banks. I also think that the interest rate might be high.

[DieselFan]

I can't believe that I was the only guy that battled to buy a s/h microlight.I realy thought that there was a need for a service like that,but I obviosly have been so wrong.

I contacted Wesbank a while back and they said they would finance ANY microlight provided it had an ATF no matter how old or how many hours.

BUT BUT BUT They wanted insurance and I wasn't prepared to pay 50% instalment to ins. So put together a few credit cards at pretty good interest rates and voila paid for - I now put my OWN money away for insurance just in case.

[RV4ker (RIP)]

Insurance is understandable. Anything you finance will be required to be insured.

Cutman
I think the market is down at the moment and all are looking in the plastic fantastic 3 axis market, thus not many looking for ML (trike) finance. Not much movement on the trike scene of late and it seems banks have cottoned onto the new class of 3 axis ad are happy to finance these. I had huge hassels getting finance (for 3 axis and NTCA) and eventually went the SA Home loans route more through frustration than anything else. Once I had paid for the planes then suddenly all were willing & able to assist. Most were not keen to finance ML's or NTCA's for that matter due to the uncertain AP setup at the time and the ability of the owner to do his own maintenance. Their argument is they finance a brand new 912ULS and the owner can (in theory) remove it and fit a 503 and thus raise capital and they would be in the red in terms of equity if there was a default. Hypothetical scenario, but it may happen and the bankie just wants to cover his ass. Not as easy to do with a C210 and they reg an aircraft bond with CAA. (Try get one of these cancelled even after the plane has changed hands a couple times:? ))

I tried to get finance boys to make it a condition that all maint be done by AP or their chosen AME. NADA. They were either car finance guys who have zero understanding of the aerie market or high flyers that "would not look at anything under a Bar"... most frustrating.

Interested to see what you have. Finance for under R100K/R150K seems to be non existent and that the entry level market. What you got...

PS
I still fail to see why there are not more syndicates. I have access to a couple aeries and I fly plenty by PC standards, but the aeries still stand more than they fly. Demon is one of the few guys i know on here that could not syndicate as he flies almost every weekend and then some. For the rest of us plebs, real life dictates... I am obviously missing the boat here? Only reason I do not have syndicate aeries any more is INSURANCE. Strangely it costs more to get other pilots loaded to fly the planes (thus having more than 1 in the ar at 1 time) than I can save by sharing the costs....

[afskies scribe]

I contacted Wesbank a while back and they said they would finance ANY microlight provided it had an ATF no matter how old or how many hours.
BUT BUT BUT They wanted insurance and I wasn't prepared to pay 50% instalment to ins. So put together a few credit cards at pretty good interest rates and voila paid for - I now put my OWN money away for insurance just in case.

DieselFan, I've been around the block on this issue over the past few months, and found it to be an utter waste of time. When I first approached Wesbank Aviation with all the details of the dream machine I wanted to buy, they said they're not generally in the market of financing microlights of any kind, especially not secondhand, especially not trikes, and even more specifically not a private sale. But they were keen to assist and sent me an email saying they "looked forward to being of service to me" provided I put down a min 20% deposit on a deal that included a substantial "documentation fee" loading of around R10k. The repayments did not include any insurance cover or credit protection cover whatsoever and I was to arrange that separately. Basically, a matter of k@k and betaal. But then, when I thought everything was arranged except for crossing the t's and dotting the i's, they informed me that a new policy decision had been taken and that no application for any trike older than 3 years would even be accepted for consideration.
So, bottom line, if you want to go through a finance house, buy a new microlight or one that is not older than 3 years. Alternatively, take out a personal loan or a second mortgage bond on your property.

[RV4ker (RIP)]

I can echo what Trixi said. I had almost all done, when they had another policy decision to change. I spoke to Stannic, Std Bank, Bankfin, Nedbank, Wesbank, Imperial and DJ&A. All very nice, but I financed it myselfin the end. No clear guidelines of what is required and how they gonna deal with you. IMHO it not worth the frustration...

PS
I was able to get an overdraft facility to more than cover the cost of the microlight with no security - Go figure? I just don't understand the banking sector and their idea's of Risk. (I deal with them on a regular basis on property and vehicle finance, so this is not a once off, but more a monthly frustration with me)

[DieselFan]

Banks are VERY weird, when applying for loan my OWN bank FNB would only give me half the amount I needed. My Fiance also only got half and she works for FNB...Combined we could buy it.

Then yesterday I get an SMS from Nedbank saying I've been preapproved for a personal loan and more than TWICE what FNB was going to give me!!! I don't even bank with them! Plus they were going to give me 1 below prime and FNB was 18%

[Tumbleweed]

How desperate are you?

Sign on the insurance and just cancel within 3 months. It's not a binding contract. It's illegal in terms of the HP, but not in terms of the insurance company.

Just realise, you'll pay your instalments regardless of what happens to their trike.

Double finance (also illegal) your (mom's) paid off car. Get someone (very close) to 'sell' you their car. Arrange the HP, buy your trike, and when you've settled the HP and the bank gives you the registered papers in your name, change back to the rightfull owner, without ever taken occupation of the car.

Just make sure you trim your extravegance and settle a.s.a.p These are the only type of emergancies that credit cards should be used for.