I'd just like to get an idea of how the rest of you players out there use your loans. When should you not? When Should you? Payback quickly or not? Make minimum payments? I really only have a vague idea and I still am not sure how to make loans work for me. Thank you all!
I tend to only take loans I can afford to pay back on a 1 year period. The only times I've stretched the term out longer were to purchase a large group of aircraft all at once to get the launch customer discount, and once when a fuel price spike had me in financial trouble.
i use the loans to pay for new aircraft the loan is always cheaper than leasing. and i always pay the loan back as quickly as i can afford 1 year is good but be careful loan repayments are not too high.
good luck :)
Thanks for the advice people! Hey, I've also seen the term "rolling loans" from time to time in the forum. What does that mean? I was in kind of in the context of, "yeah, right now I'm just rolling loans for planes". (to the best I can remember)
I've taken out loands on 10 year periods generally..tried to max it out to lease/buy new aircraft. Or sometimes just to survive. If I've had the cash, I've paid them back to not have the repayments hit me..seemes to work ok. So cant say there is a general rule on how to use them.
I take out 5 year loans in the first few months (then pay them back 8 months later - it minimizes weekly costs you pay at first). After that period of time, I only take out 1 or 2 year loans. Really, you should take out loans whenever you can (if it's enough to lease an aircraft from the used market). If you do it right, the interest fees and such are nothing compared to the profits you get.
Gosh, thanks everybody!! These all give me some food for thought. Again thanks all! :)