Neal@F14

Neal@F14

Well Known Member
Well, with only about two months elapsed after selling my Cherokee 140, I've stumbled onto what is probably the ideal RV for me to own. It's an RV-6 slider, not the -7 I'd always dreamed of... but close enuff :D.

The plane is not yet advertised anywhere, and I'm sure it'll sell very quickly once advertised, as the original builder/seller's asking price is very fair, and since I've known him for about 10 years, has offered to sell me the plane at an even lower price than he'd sell it to a stranger, so he can still get to see it fly locally and be able to enjoy an occasional ride in it.

Here's my dilemma... After I sold the Cherokee, I was able to pay off all my credit card debts, and except for the mortgage on my house, I am finally completely free of all consumer debt. I am REALLY ENJOYING being (mostly) debt-free now, after swimming in debt the past 15 years of my life. It feels just about like shoving the throttle forward, whaling back on the stick and climbing straight upward at 120kts and 3000FPM after only a 250' takeoff roll.... well, maybe not quite that good, but you get the picture :p

I have about 15% down payment to put down on this RV-6 right now, and I can stash away between $1000-1500 additional each month into my airplane savings account now, but I would still have to take out a fairly sizable loan to buy this plane. Getting a loan won't be any problem, since I've now got a great credit rating from all those debts I've paid off on time or earlier, and I'm already pre-approved by at least two different lenders for an airplane loan at the moment.

I'm just not so sure I want to get into debt again, especially for such a big loan. But then, I'm not getting any younger either, I'm pushing 50 yrs old, and if I start building an RV now, it would likely take at least 5 years to get it flying, considering how much time I could work on it plus buy all the kit pieces, etc, and then I'd probably still have to finance the engine.

I start thinking of things like this: What if I've only got 10 more years of flying left in me before my health falls apart and I can't pass a medical anymore?

If then I chose to build an RV, then I'd only have maybe 5 years of flying it before I'd have to give it up. If I buy a flying one now, then given that hypothetical 10 years of flying health, I will be able to fly it for ten years, and the loan will be paid off by then too, and I could sell it, having enjoyed it all that time.... provided fuel costs don't ground us all.

Anyway, I'm just curious how many of you would say "Go for it, you only live once" versus "Stay patient.... keep saving up so you don't have to borrow as much"
 
Debt is a personal issue. But I took out a loan to get mine. Why "waste" five years (if not more) to build when you can buy now, start flying...then sell the plane for close to what you bought it for?

Look at all the trips I made in the last seven years or so.

Ten years to fly? Don't waste any more time not having an RV. Forget the building unless you really want to do it.

My opinion.....Buy it.

Some trip reports:

http://tinyurl.com/5mphdw

http://tinyurl.com/ycobeoa

http://tinyurl.com/3au63v

http://tinyurl.com/dxn3ef

http://tinyurl.com/ku5x5u
 
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Let me make sure I understand this. You're asking a group of RV addicts if buying an RV is a good idea?

OF COURSE IT IS!!!!!
 
now

Neal@F14,

If I were you I would get a loan on the equity in my home. The rate will be much better than a loan on the airplane. Get it now.
 
DEWATSON said:
Neal@F14,

If I were you I would get a loan on the equity in my home. The rate will be much better than a loan on the airplane. Get it now.
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I've thought about this, but I can actually get a "recreational vehicle" loan (that's what the loan on my Cherokee was) from my credit union for not much more interest rate than a home equity loan. It just the thought of borrowing $50K on one big loan right now that makes me hesitate.
 
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Buy it!

I always like spending somebody elses money :D

Man, you came to the wrong place asking for advice.
 
DEWATSON said:
Neal@F14,

If I were you I would get a loan on the equity in my home. The rate will be much better than a loan on the airplane. Get it now.
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This would be a fixed first, and would be tax deductible (for now).

If the plane is THAT GOOD, you could sell it any time you don't like the way things are going.

Do you have full backing from the boss?

It is really difficult to find a good buy on an RV in your own neighborhood!!

You can't build one for $50K unless you were given the motor and tools and 2 years time....

Will the current owner-builder help you with inspections??

This RV will be soooo much cheaper to operate that that Piper. I know, I had a PA28-151 and now I have a RV6A O320...... 30 mph faster on 4 gph less. Fun factor is 8 points higher (on a scale of 1 to 10).

What are you going to say to your buddy as you both sit in the rest home and he is telling you about how much fun he had with his RV6....... and you say, I paid off my house when I was 50.............


GO FOR IT!!
 
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Neal@F14 said:
I've thought about this, but I can actually get a "recreational vehicle" loan (that's what the loan on my Cherokee was) from my credit union for not much more interest rate than a home equity loan. It just the thought of borrowing $50K on one big loan right now that makes me hesitate.
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If you have the equity in the house, this one makes the most sense. I have one out for $25K from my rental house. I used that money to help me purchase the house we are living in and also remodel it. It's only costing me $76/month in interest.

Plus, the best part is as you pay it down, the money is still available to you. It's not like a loan where you pay it down and it's gone.

Plus, lower interest rate means it's costing you less, obviously.
 
Paul K said:
Man, you came to the wrong place asking for advice.
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Maybe my subconscious mind really came here looking more to be talked into it than out of it :D

However the prospect of staying out of large debt just a little bit longer is an incredibly powerful motivation too.

But then, I don't have anything to fly to Oshkosh this summer either, and getting to fly my friend's brand new 192hp RV-8 solo to Oshkosh and back home last year was an experience that I very much long to recreate again. (Even though that RV-8 will run circles around this RV-6... the RV-6 will run circles around my old Cherokee)

Decisions... decisions.... AUGH!

This is making my brain hurt :eek:
 
Neal@F14 said:
......Anyway, I'm just curious how many of you would say "Go for it, you only live once" versus "Stay patient.... keep saving up so you don't have to borrow as much"
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It's ultimately your call, but here's a little story.

Oct'09 a retired friend offered to loan me the money to finish my plane. I had been saving to purchase the engine, but was many years away from finishing. He said "life is short, you need to get that thing in the air" I agonized over the decision to borrow. But finally gave in. Then Dec '10, shortly after I received my Airworthiness Cert, My friend and his wife took off to follow their dreams....Texas lake house, Florida cottages, OSH, S&F, summers in Montana. I was jealous and couldn't wait until my wife and I could spend time with them. BOOM!!!! 2 weeks later in Jan '11, she is diagnosed with stage 4 cancer/brain tumor. Spent her 59th birthday recovering from surgery, now chemo and radiation. Thursday last week, we helped move her into a Hospital room to be closer to friends and family....She will not see 60.:( Their dreams are different today as they hope to have time this summer with friends and family visiting.


so it's your call. It made my decision to borrow into a different perspective that I really hadn't considered before.
 
Neal@F14 said:
I've thought about this, but I can actually get a "recreational vehicle" loan (that's what the loan on my Cherokee was) from my credit union for not much more interest rate than a home equity loan. It just the thought of borrowing $50K on one big loan right now that makes me hesitate.
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But the interest on the home equity loan is tax deductible (at least for now) while the RV loan is not!
 
avoid debt any anyone who rationalizes it with "time savings" or "enjoy now pay later" attitudes just doesn't comprehend logic
 
I did, Neal.

I was 63 when I borrowed $100,000 for the -10...no regrets at all and the wife was aboard...the one who suggested it!

We both agreed that while I still can easily pass class II physicals and our health is good, to go for it. We're having a ball and are way ahead in our payoff on the -10. We drive old trucks and cars...grill out and stay home and so on.

Go for it,

Best,
 
Neal@F14 said:
Maybe my subconscious mind really came here looking more to be talked into it than out of it :D

However the prospect of staying out of large debt just a little bit longer is an incredibly powerful motivation too.

But then, I don't have anything to fly to Oshkosh this summer either, and getting to fly my friend's brand new 192hp RV-8 solo to Oshkosh and back home last year was an experience that I very much long to recreate again. (Even though that RV-8 will run circles around this RV-6... the RV-6 will run circles around my old Cherokee)

Decisions... decisions.... AUGH!

This is making my brain hurt :eek:
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The one motivation is to stay as debt free as possible, the other is fly an RV.

For me it would be a simple solution - build what you want. It won't take 5 years with your motivation to fly. Order half the airplane QB (wings or fuselage) and build the other half while you wait for the QB part. The up side is the experience of building, a repairman certificate, and all at a reasonable cost. Go basic glass, a light weight Barret IO360, a Catto prop and skip the paint. The airplane will fly great and it could be done in less than 2 years. You'll never look back.

And stop worrying about the future. You are a relative youngster. :)
 
What Brian said. The caveat is that you should consider the potential ramifications of getting a loan (like Ron said, its a personal decision). If it were me, I would not take on a loan if it put me on the edge of fiscal responsibility (i.e., too much hanging out there). But if your job seems secure and the loan seems reasonable, then this looks like a good opportunity.

Another possible option would be to go partners with the owner for a couple years? Or will he carry a loan at a lower rate? Or some such deal.

greg
 
Rocking chair test

When faced with a decision like this I apply "the rocking chair test". Ask yourself how are you going to feel when you are sitting on the porch at 90. Are you going to be playing "coulda, woulda, shoulda" or are you going to have warm thoughts about the adventures you had, the friends you made, and the freedom that you felt?

John Clark ATP, CFI
FAA FAAST Team Member
EAA Flight Advisor
RV8 N18U "Sunshine"
KSBA
 
For some other reasons, which I won't go into here, I do not want to take out a home equity loan on my house. Not an option I want to take at this time.

Anyway, here's a pic of the panel
rv6panel.jpg
 
Might want to keep some of that cash on hand. There is a slight possiblility, ok very remote chance, that something will break and need to be replaced. Like I said, almost never happens. Also, with a new toy on hand, there is even a more remote tiny tiny possibliity that you will want to change something, and that would lead to another change and another change until you and the UPS guy are closer than twin brothers. But seriously, the chances of this happening to you are like slim to none.

You have my permission to get the loan. Mine will be paid off when I sell the plane some day down the road a ways.
 
First off I LOVE my RV......I hate to be a kill joy but.... If I were you I would do all I can to stay out of debt! I was in a similar boat as you although all of my debt was building the RV, when I paid it off it was the best feeling in the world! Now I as you only have a mortgage and my wife and I are saving and working towards paying our home off early. Everyone is different and have different priorities but the fact that you need to feel talked into it tells me you know it's not smart to go big time in debt for a toy.
I know I will probably get flamed by the "live for today" crowd, but my own reality has made it very clear to me that living within your means and not buying things you can't afford has made me much much happier.
Think of it this way if you had the purchase price sitting in the bank right now would you buy it??
All the Best
 
bkthomps said:
avoid debt any anyone who rationalizes it with "time savings" or "enjoy now pay later" attitudes just doesn't comprehend logic
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This is the "other side of the coin" for me. I can hear my (long departed) mother's voice admonishing me already.

But then I've also always said there's two rules about airplanes and money:

1) Never try to cost-justify flying your own airplane. You can't.
2) Never ever add up all the money you've spent on flying. You don't want to know.

Sarek paraphrased: "My logic is uncertain, where my flying is concerned"
 
Build a new one

Buying and flying is instant pleasure but you are leaning back into the same trap you just got out of. Building and testing and flying your own RV is also instant pleasure but I'm sure you know that down deep. It is also expensive and the risks are greater but the satisfaction of success runs very deep. If you are not dedicated to building your own airplane there is a good chance you will give up before completion - it's not easy.

Bob Axsom
 
Go for it, but promise yourself some things.

I know what its like to be debt free. A wonderful feeling of financial security. It may be false, but it feels good.

I built my RV-6A as funds became available so it was paid for when I started flying. At about the same time we finished paying off the mortgage on the house 18 years earlier than the loan was written for. The wonderful freedom had arrived.

A couple of years later and a hangar was looming before us. The dilemma, reach into savings to buy the hangar or go into debt again. We went into debt again to the tune of 96K, Gulp:(.

Five years went buy and we scrounged, flew, scrounged some more and let the cars fall apart but managed to pay off the Hangar 10 years early. Again we are debt free but far from wealthy. But its all mine.

So if you really want the plane, go into debt again and promise yourself you'll pay it off asap. Keep that promise and life will be grand again.

Bypass the flashy new cars. I can fly or drive a Ferrari, but not both.

Don't worry about the medical. Eat right and exercise to keep your health into your 80's and beyond and your medical should take care of itself. You CAN control your health.
 
another way to view it, and maybe this is just me or perhaps some of you have forgotten

but the whole project is just as fun as I imagine flying and enjoying the finished product will be, I wouldn't really want to fast forward through the building process, it's fun and rewarding

QB wasn't for me for this same reason

also as a side note, home equity loans, lines of credit, or equity on a rental should all be viewed the same, you're borrowing against your house/property for a toy, never really a good idea. doable? sure, smart? rarely
 
somewhere in the middle

I am not a fan of debt. That said, my decision was something close to what Pierre noted. I looked at what I spent money on and decided I'd rather have the RV than Starbucks or eating at restaurants (other than special occasions), and the RV is my vacation each year. So, now I cook and have friends over (and vice versa), and I got visit friends in the RV. The things I no longer spend money all go to the RV. Pays for the plane, fuel, oil, and maintenance. I don't miss "the other stuff" nearly as much as I enjoy the plane and getting to fly to see family and friends.
 
negative.. flying it is much more fun! You can keep the cuts and sore backs and sweating while doubled over underneath the panel and swearing and multitude of trips to aircraft spruce after you just went..


bkthomps said:
another way to view it, and maybe this is just me or perhaps some of you have forgotten

but the whole project is just as fun as I imagine flying and enjoying the finished product will be, I wouldn't really want to fast forward through the building process, it's fun and rewarding

QB wasn't for me for this same reason

also as a side note, home equity loans, lines of credit, or equity on a rental should all be viewed the same, you're borrowing against your house/property for a toy, never really a good idea. doable? sure, smart? rarely
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Everything is a trade-off

You must decide if trading money (interest paid) is more or less important that the time it would take to build. Like you mention, you are aware of the size of the loan and your ability to pay it back, therefore the only thing you must decide is how much you value your time (time invested building and time you won't enjoy the aircraft). If I've learned anything while getting my MBA is that we must place a value on opportunity cost. In your case, it seems to me that your highest opportunity cost is time, not money really.

Good luck on whatever you decide!
 
I've helped my friends build a -10, an -8, and two -4's over the past few years, so I'm plenty familiar with building them... plus have a few scars on my hands to prove it! My job is pretty secure (I think) and right now I can handle the payments... I just need to convince myself that I want to make such large payments for such a long time. And right now, with some money sitting in the bank and no payments other than my mortgage, insurance, and living expenses... after having half of my past adult life filled with payments, payments, and more payments of consumer debt... it's easy to see why this is a tough call.

Anyway, if I did have the full purchase price sitting in the bank right now, even if it was my entire savings (outside of my retirement fund) I'd buy the plane in a heartbeat.
 
My (ex)-wife used to tell me to wait until I retire to build/fly the RV. Meanwhile I was buying furniture and bigger houses (and new cars for her). Then my dad died suddenly at 67. Scr#w that! I still have to pinch myself sometimes when I open that hangar door and see my own plane awaiting me.

Time waits for no man.

6's are a screaming deal right now. Buy it, buy it, buy it!
 
Why??

gasman said:
You can't build one for $50K unless you were given the motor and tools and 2 years time....
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Tell me why you can't spend less than 50k? Why do you have to have a new engine and super everything panel? :rolleyes: If you want to you can still build a well equipped, fixed pitch, 320 powered RV for under 50k.
I've done it and I could do it again.

I think it really depends on how good of a deal this one is? How much interest will you pay if you get a loan? Add that to the purchase price. Is it still a good deal? If you can pay cash now for the kit and start building and then finance the engine in a year or so how much will that save you in interest? Call in those guys you helped and get the thing done. Don't borrow until you have to and pay as you go. There's many ways to do it

IMHO it's just not a good economic climate to borrow in. Especially for a toy.
 
As a former long time Cherokee driver, why not build an RV12? Faster than an old Cherokee, way less fuel burn, that is what I am doing. They don't take so long to build either, and best of all, you don't need a medical to fly one.
 
Syndicate

I'm not sure if it's often done in the US but over here in the UK having partners and a share in aircraft is quite popular, keeps the fixed and ownership costs down. If you got two or three others you could have the plane and no debt. Hanagerage plus insurance would be much cheaper.

Peter
 
RV-12 Pros and Cons

Cons: no aerobatics, *docile handling, not really much faster than my old Cherokee 140 was (it was quite a fast one with a few speed mods), its still a nosewheel RV, will actually cost significantly more to build and paint than this already-flying RV-6, I don't really like tip-up canopies, annoying sound of the geared Rotax engine :p which I'd still have to take out a loan to buy. I'm just not really into the RV-12 at this point.

Pros: Definitely way better on the fuel economy, quick and easy to build, *docile handling, no medical required, but I can still pass a 3rd class medical just fine now (even without eye glasses)... who knows what the next 10+ years may hold, however.

*docile handling is both a pro and a con ;)
 
kiwipete said:
I'm not sure if it's often done in the US but over here in the UK having partners and a share in aircraft is quite popular, keeps the fixed and ownership costs down. If you got two or three others you could have the plane and no debt. Hanagerage plus insurance would be much cheaper.
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An airplane partnership is just not for me... we'd likely become mortal enemies pretty quick.
 
I'm 29 year old airline pilot. Healthy too. Last december I passed a military flight physical then 2 weeks later my brain decided to bleed. Fortunately, I had successful surgery and I'm 100% again. I'll get my medical back in about a year from now, but it made me think. You just never know how long you have, no matter how healthy you are.
 
I was in the same boat as fl-mike, all of my money (and debt) was going towards all of the things my now ex-wife wanted. The big house filled with only Ethan Allen furniture, a Lexus, vacations every year to Europe blah, blah, blah.

With the exception of the $10k balance left on my car I have no other debt as I rent and do not own a home. It was such a spectacular feeling to be free of all that debt for things I didn't even really care about. But if things work out for me as I hope, in the next few months I will be looking to buy a flying 6 or 7. I will stick with a short loan, like 5 years to make sure it is paid off quickly.

I have been talking a lot about it with my father. The last thing I said was: I want to save and prepare for the future, but I also want to enjoy myself now because you can't take it with you. His reply: "then do it if you can afford it."

My personal criteria is that I still have a good emergency account and max out my IRA and 401(k). I'll live in a cheaper apartment, I won't be getting a new car or motorcycle (that's paid off). I already make most of my own meals because it is cheaper AND healthier. I don't go out and party wasting money on beer and clubs. Chicks learn pretty quick that a date with me is going for a hike with my dogs and then I make dinner, not some fancy restaurant and live show.

Set your own personal criteria like still being able to max out the retirement or whatever else you come up with. If you can still do it, go for it, but if not then better to wait.
 
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Don't sacrifice today for tomorrow

Or as a brother in law told me once when his sister was pondering spending 30k for a car she really liked. He said we make money to give it to other people for stuff, this is actually a good point. Now she still has not taken the big step to buy that car so she suffers from debt aversion as well.

I will have my house paid off soon and though it looks nice on the balance sheet, I ask myself what good the equity in a home is doing for me. If you die with all that equity what good has it done you, nothing is what maybe you want to leave you kid a load of money but that is another issue. I told my parents you should strive to spend you last dollar with your last breath. It is their money and they earned it, they should not be expected to leave the kids a bunch.

At interest rates today, money is cheap, I have loved building my plane but have wanted to be flying for the last 2 years, honestly I think I would just buy next time, but then I really know the plane by building one.

My Father in law had grand plans to travel and see the world after he retired then a rare cancer hit and he was gone at 62. Talking with him I realized day to day life has to be a balance of what you love and planning for the future years, you can't put off or ignore either.

My vote buy the plane, if times get tough or you really don't like the debt over your head then you can alway sell it, even if at a slight loss.

Cheers
 
lcnmrv8r said:
Tell me why you can't spend less than 50k? Why do you have to have a new engine and super everything panel? :rolleyes: If you want to you can still build a well equipped, fixed pitch, 320 powered RV for under 50k. I've done it and I could do it again.
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If the goal is to have "yes, I built an airplane" on your bucket list, then yes, you should do this. Yes, you can do it for $50K or less in parts.

If the goal is to own your own RV, and building is a secondary consideration, you'd be almost insane not to buy one and start flying. You can *buy* an flying RV-6 for under $50K right now.

If you've committed to having an RV-6, there's no difference between building at $10K/year for 5 years or buying a $50K airplane now and flying it and paying it off for the next 5 years. The economic cost is the same. The difference is you get to fly it for the next 5 years.

If it's an incredibly good deal compared to market, then keep in mind that if push comes to shove you could always sell it somewhere between what you paid for it and what the market value is, and cover the outstanding loan, at any time.
 
Neal@F14 said:
I just need to convince myself that I want to make such large payments for such a long time. And right now, with some money sitting in the bank and no payments other than my mortgage, insurance, and living expenses... after having half of my past adult life filled with payments, payments, and more payments of consumer debt... it's easy to see why this is a tough call.
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Actually, I don?t think you would have come looking for an answer if you didn?t have some feeling about what the answers might be, and what you wanted to hear.

Since you already went through a great deal of effort to pay off all your consumer debt, that was obviously something very important to you. I feel the same way. I have eliminated all debt, and I will never willingly go into debt again. It is hard to know what will happen, but unless some disaster strikes, I?ll never have another loan.

For me, it is a great feeling. And I mean GREAT! It is, after all, a personal decision based on ones tolerance for debt.

About 6 months after I paid off the last debt, I looked at the club Bonanza schedule for the summer, sighed, and decided that I was FINALLY in a position to own my own plane. Owning is more expensive than the club, and the risk of unexpected expenses far higher, but the decision to wait, and then finally the decision to buy, were both well worth it.

I think someone said on this site a few months back that when faced with a decision like this you should flip a coin. The result of the flip isn?t the important part though. What is important is your REACTION to the result.

There are a lot of alligators out there at the moment, and we are facing a time of inflation in the things we need, and deflation in the things we want. If a real storm comes to pass, those without any debt will weather it better than most.
 
Mile High Relic said:
Actually, I don?t think you would have come looking for an answer if you didn?t have some feeling about what the answers might be, and what you wanted to hear.

Since you already went through a great deal of effort to pay off all your consumer debt, that was obviously something very important to you. I feel the same way. I have eliminated all debt, and I will never willingly go into debt again. It is hard to know what will happen, but unless some disaster strikes, I?ll never have another loan.

For me, it is a great feeling. And I mean GREAT! It is, after all, a personal decision based on ones tolerance for debt.

About 6 months after I paid off the last debt, I looked at the club Bonanza schedule for the summer, sighed, and decided that I was FINALLY in a position to own my own plane. Owning is more expensive than the club, and the risk of unexpected expenses far higher, but the decision to wait, and then finally the decision to buy, were both well worth it.

I think someone said on this site a few months back that when faced with a decision like this you should flip a coin. The result of the flip isn?t the important part though. What is important is your REACTION to the result.

There are a lot of alligators out there at the moment, and we are facing a time of inflation in the things we need, and deflation in the things we want. If a real storm comes to pass, those without any debt will weather it better than most.
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BIG BIG BIG THUMBS UP!!!!
 
lcnmrv8r said:
Tell me why you can't spend less than 50k? Why do you have to have a new engine and super everything panel? :rolleyes: If you want to you can still build a well equipped, fixed pitch, 320 powered RV for under 50k.
I've done it and I could do it again.

I think it really depends on how good of a deal this one is? How much interest will you pay if you get a loan? Add that to the purchase price. Is it still a good deal? If you can pay cash now for the kit and start building and then finance the engine in a year or so how much will that save you in interest? Call in those guys you helped and get the thing done. Don't borrow until you have to and pay as you go. There's many ways to do it

IMHO it's just not a good economic climate to borrow in. Especially for a toy.
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Sorry, I should have said "you can't build one like THAT for less that $50K."
 
Interesting discussion. Although I completely understand how financial system works I still could not get the logic of debt. May be I have to experience it to get the feeling. Good debt or bad debt it's a huge and depressing burden for decades I think. My vote is one of minority - do not borrow doesn't matter how attractive the deal is. You may want to reread Bob Axsom's post.
 
rv-6

Neal,

I just transitioned into a 6A from a cherokee 140. I wish I would have done it sooner. You never know how much time you have left. Enjoy it while you can!

John Thach
________________
RV 6A
180 h/p constant speed
 
Ifly1 said:
Neal,

I just transitioned into a 6A from a cherokee 140. I wish I would have done it sooner. You never know how much time you have left. Enjoy it while you can!
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I got to learn the transition process last year in a friend's RV-4 and then into a brand new hotrod glass-panel 192hp RV-8 that I helped another friend build. Thanks to their generosity, I was able to log about 75 hours of RV tailwheel flying over the past 11 months. It put a whole new perspective on going back to flying the Cherokee... and why I sold it to the first buyer who came along with a fair offer.

Thanks to everyone for all the advice... Since the RV-6's owner is not in any giant rush to sell the plane immediately, maybe I should spend a few more weeks thinking things thru some more, and see if I can't at least scrounge up a couple more AMUs to pay down while I contemplate on ten years' worth of large monthly payments. It's a huge decision.
 
Mile High Relic said:
Actually, I don?t think you would have come looking for an answer if you didn?t have some feeling about what the answers might be, and what you wanted to hear.

Since you already went through a great deal of effort to pay off all your consumer debt, that was obviously something very important to you. I feel the same way. I have eliminated all debt, and I will never willingly go into debt again. It is hard to know what will happen, but unless some disaster strikes, I?ll never have another loan.

For me, it is a great feeling. And I mean GREAT! It is, after all, a personal decision based on ones tolerance for debt.

About 6 months after I paid off the last debt, I looked at the club Bonanza schedule for the summer, sighed, and decided that I was FINALLY in a position to own my own plane. Owning is more expensive than the club, and the risk of unexpected expenses far higher, but the decision to wait, and then finally the decision to buy, were both well worth it.

I think someone said on this site a few months back that when faced with a decision like this you should flip a coin. The result of the flip isn?t the important part though. What is important is your REACTION to the result.

There are a lot of alligators out there at the moment, and we are facing a time of inflation in the things we need, and deflation in the things we want. If a real storm comes to pass, those without any debt will weather it better than most.
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KirkGrovesRV8 said:
BIG BIG BIG THUMBS UP!!!!
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Totally agree, BIG BIG BIG THUMBS UP!!!!

If we have not learned any thing from the recent crisis, the culture of buy now with the $$$ you don't have, we will always be chasing the debt-free and the freedom that comes with it.
With the exception of a house, which would be near impossible to buy outright cash, I will not spend the money I don't have.
 
I recently purchased. I sunk down a hefty down payment and I have a substantial loan as well. I am fortunate enough to afford it but you never know what can happen. I weighed the pros and cons heavily but decided to LIVE first. Nothing is gained without some risk.

I figure with my large down payment and my over minimum monthly payments that I own an airplane worth more than my loan. I could regretfully get out relatively unscathed. I would walk away knowing the joy the RV has brought me.

One last thing I could add....I dont think the poor economy will last forever and aircraft prices will start to rise. This will improve the debt to value ratio in my favor.

Either way....the "grin" is PRICELESS!!!!:D:D
 
tkatc said:
I recently purchased. I sunk down a hefty down payment and I have a substantial loan as well. I am fortunate enough to afford it but you never know what can happen. I weighed the pros and cons heavily but decided to LIVE first. Nothing is gained without some risk.
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And a big thumbs up!!!............from my perspectve.

When you hit 50, 60 happens faster than you'd believe. I remember my 20 year high school reunion well. Doesn't seem that long ago. Suddenly, it's now 42 years at the end of this month. I guess RV flying is just more rewarding than a debt free (but possible boring) life...

Besides, if everybody decides not to spend or borrow, the economy sinks anyway. The economy actually DOES depend on poducts being sold. Not just the basics.

L.Adamson --- RV6A
 
rv loan

im in a partnership with 2 guys and it has been the best way for me to own an rv i have two other planes and could not have that rv grin without them and it makes my cost a third maybe you could find a partner
 
Cooperd0g said:
I was in the same boat as fl-mike, all of my money (and debt) was going towards all of the things my now ex-wife wanted. The big house filled with only Ethan Allen furniture, a Lexus, vacations every year to Europe blah, blah, blah.
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Interesting, I thought I had all her sisters accounted for...

I should qualify my response some with the fact that I am pretty much debt free (small car loan), rent a condo, and max out my 100% matched 401k. I am trying to buy a house, but just so I can have a workshop for the next RV project! (condos are curiously averse to car wrenching, drum playing, and airplane building).
 
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