Loan w/ and w/o securities

[Mr.HP]

Hi,

I found a relatively cheap plane that I want to buy. The problem is I don't have enough money at the moment. I'm thinking about loaning 8M w/o securities for 1 year, and the bank charge like 10.5M for the total payment

I'm wondering if I loan the amount, then use the A/C as securities and make another loan (with cheaper rate I hope) then pay back the 8M loan I've made

Would that possible and feasible in term of financial efficiency? Would the bank demand a penalty for early pay back?

Thanks

[LemonButt]

Would that possible and feasible in term of financial efficiency? Would the bank demand a penalty for early pay back?

yes and yes

[Mr.HP]

Uhmm, by paying the 8M back early, there's a penalty, then how is it financial efficiency?

[LemonButt]

Uhmm, by paying the 8M back early, there's a penalty, then how is it financial efficiency?

Because instead of throwing money away with leases you are building equity.

[Mr.HP]

I see.

Well, I've made the lease for 1 year and maybe buy the A/C later. Would the price of the A/C 1 year later be cheaper or stay at the same price as selling now?

Thanks