How'd you fund your Kitfox?

[mtTundra]

Greetings all,
I'm new to aviation, working on getting my PPL currently.
a couple buddies and I have settled on building a couple of kitfox's over the next couple years, while I build time and ratings.

What got me thinking was, how have those of you who've done it funded your build?
I know you can finance a finished plane, but a kit seems to be a little harder to do. Did you finance the kit? Sell an extra car or other toys? Cash our refi on your house? Pay Cash?

Just looking for ideas on how you've done it. Considering the kit plus engine is likely to run ~80K by the time you factor avionics, engine, plane kit, etc.

Not looking for boasting or starting a debate on which way is 'best', just looking for advice on methods or sacrifices you all have made to get there.

Cheers,

Matt

[aviator79]

I paid cash, and I have definitely run over budget. I'd say $80k is a decent budget. But if you want all the bells and whistles, it goes north quickly.

EAA's financing partner, NAFCO will finance your build. The value of your kit crashes when you take delivery, and doesn't really recover until you finish building. Only about 25% of new kit builders (all types, not necessarily Kitfox) finish an airplane kit. Because of this, it's a risky loan for the lender and the terms aren't great. For the kit, I was quoted 20% down, and 7.6% for 10 years, with a balloon at 3 years. When you're ready to buy firewall forward, they would have refinanced the loan into 5.73 to 6.07% for 5-15 years. This structure really reflects the risk profile of the loan. Given these terms, I elected not to finance.

[jiott]

Bought the wings first, then the fuse, then the engine &FWF, and last the avionics. It spread out the cost over 2.5 years.

[jonstark]

Cash.
Just don’t attempt to justify the expense.

[Shadowrider]

Matt don’t take this the wrong way, and I don’t make much, but I am not a believer in going into debt. Start saving and only buy what you have money for.

[efwd]

Does Divorce count?:rolleyes:

[mtTundra]

Does Divorce count?:rolleyes:
Depends... was the plane a factor in the divorce? That would be good intel to have prior to placing my order lol.


Matt don’t take this the wrong way, and I don’t make much, but I am not a believer in going into debt. Start saving and only buy what you have money for.
I completely agree with this. Just trying to get a idea of what people have done.


Cash.
Just don’t attempt to justify the expense.
Oh I'm only trying to "justify it" to the wife... I have 0 delusions about burning the money haha.


Bought the wings first, then the fuse, then the engine &FWF, and last the avionics. It spread out the cost over 2.5 years.
Thank you, this is probably what I'll end up doing as well. Piecemeal seems to be the best option for me. I could swing at the kit itself, but would take a few years to replenish my reserve and I'm a fan of keeping a safety net.
The Avionics and Engine are the scary bit as about the time I get my savings back it'd be time to throw down the expensive part, and having a complete air frame would be a huge incentive to just finance the engine to get it done and start flying it.

Thank you all for your responses.

[efwd]

Nah, that's a bit tongue in cheek. My ex is good people. She is like those wives some have spoke about here who support a build as she did 16 yrs ago with my RV4 project. Divorce certainly helps on the time commodity though.
Save, Save, and Save some more. Drive 20 year old cars and buy houses that don't cost you your entire pay check. Living with a Kitfox is far better than living with an extra 1000-1500 square feet you really don't need. :)

[t j]

I married a rich woman.:)

[mtTundra]

You sir are smarter than I.

[beeryboats]

I married a rich woman.:)

I married one that, through hard work, became rich. In reality I sold a Piper Vagabond project that had been setting for 35 years and bought a Kitfox that needed some TLC. Not flying yet, still looking for an A&P to do the condition inspection.

[Slyfox]

by doing something in my life that makes me a lot of money.

[896tr]

Keep in mind that if you do finance it the lender will most likely want you to carry full insurance on it, mine did. That added an extra $1200 per year.

[rocketman2tm]

I did the pay cash for what you can when you can method. Just make sure avionics are the last thing you buy as these are always getting better.

Also if anyone ever asks how much your homebuilt airplane costs, just tell them "All of it."

[hamer]

Keep in mind that if you do finance it the lender will most likely want you to carry full insurance on it, mine did. That added an extra $1200 per year.

Seems like a ripoff. I got a quote last week from Falcon Insurance (via EAA) and it was $250/yr for project insurance while it's in kit form.

[aviator79]

Seems like a ripoff. I got a quote last week from Falcon Insurance (via EAA) and it was $250/yr for project insurance while it's in kit form.

I'm guessing he means after it's flying, but you're still paying on the loan.


I'm a strong advocate for not taking on debt to finance toys. That said, don't judge people harshly for considering financing a kit. It's probably a more sound financial decision than financing a car in terms of depreciation of the financed asset. You might argue that a car is necessary in most places to get to work, etc. But if you financed more than a couple thousand dollars worth of car, it is way more than what you need just to get around.


Since I started flying in 1995, aviation has increasingly become the domain of only the wealthy, and it's a shame. If someone can build a kit while they still have years left to build and fly it, but has to make a deal with the devil (finance company) to do it, then so be it. Sometimes bad financial decisions aren't necessarily bad life decisions. Let's face it, spending this amount of cash on a toy isn't exactly a wise financial choice.

[hamer]

I'm guessing he means after it's flying, but you're still paying on the loan.


I'm a strong advocate for not taking on debt to finance toys. That said, don't judge people harshly for considering financing a kit. It's probably a more sound financial decision than financing a car in terms of depreciation of the financed asset. You might argue that a car is necessary in most places to get to work, etc. But if you financed more than a couple thousand dollars worth of car, it is way more than what you need just to get around.


Since I started flying in 1995, aviation has increasingly become the domain of only the wealthy, and it's a shame. If someone can build a kit while they still have years left to build and fly it, but has to make a deal with the devil (finance company) to do it, then so be it. Sometimes bad financial decisions aren't necessarily bad life decisions. Let's face it, spending this amount of cash on a toy isn't exactly a wise financial choice.

Likely.

I agree, I hate debt. I looked at financing options for a while, but it just didn't feel right. In the end I decided to sell my truck to get the last bit of cash I needed to fund the project. Lucky (or unlucky) for me I live in SoCal and can ride a motorcycle daily, which is plenty for 95% of my needs. A motorcycle is way more economical than a truck, that's why I decided to keep the bike and sell the truck.

I'll work on getting another 4 wheeled vehicle when the project is flying!