Rig Financing

[baseknut 0]

Hey everyone,
I just recently received my A license, and I have been looking for gear, used and new.

I was just wondering what you all did to purchase that first rig.

If I go used, the rig I am looking at is about $2000. cant go wrong there. And a new rig, well you know the price for those.

But, did you guys save up, or use another financial option (like a loan.) I spoke with a jumper at my dz, and he said he took out a student loan to buy his first rig, which was a brand new javelin system. this isnt a bad option, seeing i can pay the payments of a loan for that much.

plus, i am a college student. so i do have a job, but i do not have the income of a person with a full time career.

blue skies,
jake

Step into my (sub)terminal Playground

[peregrinerose 0]

Don't go into debt for a rig, that's silly. Save your pennies. I work as a packer to pay for all my skydiving expenses. You could probably save enough in one summer of packing to pay for a decent used rig.

Believe me, when you've graduated and are stuck making the student loan payments, you'll wish you got into debt as little as possible. I've been writing $2000/month checks for seven years now to the student loan people... it's painful when you have to pay for it.

Do or do not, there is no try -Yoda

[kelpdiver 2]

go used if you do choose debt, and pay it in the time planned. But don't create a plan that involves ignoring other debts on the balance sheet.

When you graduate without debt, you have considerable freedom to travel, not work, relocate to a new region, or be a skydiving bum. But if you have 5 figures in debt, you have no choice but to work for the man just to cover the interest.

[wildfan75 1]

I didn't start skydiving until I was 30. When I was in college I started a 401K. Just 1 or 2% to put away something. I used that money to pay for my first rig. I figured how many people start a 401K while they are in college (working 30 hours a week as a full time student putting oneself through school non-the-less). So instead of being ahead of the game, I figured I'd just be with the game.

Good luck...but I agree. Don't go into debt. It will only get worse. Suddenly you'll be paying less per jump and will want to jump more.

[baseknut 0]

yeah, i have decided that i am going to work and save up for my rig.

even though i have to pay for those student raters.

thanks to all who replied

Step into my (sub)terminal Playground

[skybytch 273]

I'd suggest putting a rig together in pieces, as you can afford things.

Start with a container and a reserve. If you aren't going to be picky about the container brand you can get something airworthy for two or three hundred bucks; some inexpensive used containers are even freefly safe. For a reserve look for something of an older design like a Super Raven; as long as you keep your loading around 1.0 or less it'll work just fine - and you can buy them used for $300-ish.

If you want an AAD, pick up a Cypres with 4 or less years left on it - $400 or less.

Once you have a container/reserve/AAD you can probably demo/borrow mains until you can afford to buy one. Look for something zp but of an older design - there are great deals out there on Sabres and Triathlons.

[krouton01 0]

Students loans are incredible things with incredible rates. Theres absolutely nothing wrong with debt if you know how to manage it. However, many people cant...you know yourself better than me. I'm pretty sure everyone on my collegiate team used student loans to finance their rigs including me. Plus, debt management is critical to success in life......so its good to start in college despite what some may say. Again though, all of us had advance knowledge finance and accounting.

[DSE 5]

Bear in mind that if you jump much at all, buying new is a waste if you just got your A, IMO.
You'll be wanting to resell it in a couple hundred jumps, and used gear tends to hold its value pretty well, while new doesn't seem to keep.
I've downsized twice in 400+ jumps, I'd imagine that's fairly normal?
I just bought my first all-new rig, but have had three used rigs, and sold two of the three for about what I paid.

[chriswelker 0]

***Students loans are incredible things with incredible rates. Theres absolutely nothing wrong with debt if you know how to manage it. However, many people cant...you know yourself better than me. I'm pretty sure everyone on my collegiate team used student loans to finance their rigs including me. Plus, debt management is critical to success in life......so its good to start in college despite what some may say. Again though, all of us had advance knowledge finance and accounting. ***

I call BULLSHIT!
You must be kidding, right? The only thing wrong with your plan is it doesn't account for RISK. Please tell me how you are going to service your debt if you get injured and are unable to work or just get fired, laid off, etc.

Chri$ Welker

[peregrinerose 0]

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Students loans are incredible things with incredible rates. Theres absolutely nothing wrong with debt if you know how to manage it. However, many people cant...you know yourself better than me. I'm pretty sure everyone on my collegiate team used student loans to finance their rigs including me. Plus, debt management is critical to success in life......so its good to start in college despite what some may say. Again though, all of us had advance knowledge finance and accounting.

With your 'advance knowldedge of finance and accounting' (sorry, that made me snicker given your advice here), you should know that student loans are for school and living expenses. Somehow I doubt that a rig counts under that.

You tell me which makes more financial sense.. Choice 1: spending $7000 on new gear with very low jump numbers and paying interest on that $7000, then reselling the gear in 100-200 jumps for only $5000 (while still finishing the payments on the initial loan. Choice #2 Pack for the summer, make more than enough money for a good used rig at $2000 (plus enough for jumpsuit, altimeter, lots of jumps, etc), jumping that for 100-200 jumps, re-selling it for $1800 and not have incurred any debt to do it.

Part of good debt managment includes not incurring unnecessary debt! Given that I graduated with $126K in student loan debt, I'm pretty sure that I know a thing or two about the pros and cons of them as well as some basics of debt management

Do or do not, there is no try -Yoda

[pinkfairy 0]

I saved up money by buying cheap clothes and food for half a year and got a new rig.

Hard work will get you there.

Good luck!

Relax, you can die if you mess up, but it will probably not be by bullet.

I'm a BIG, TOUGH BIGWAY FORMATION SKYDIVER! What are you?

[DougH 270]

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With your 'advance knowledge of finance and accounting' (sorry, that made me snicker given your advice here), you should know that student loans are for school and living expenses. Somehow I doubt that a rig counts under that.

Every student who completes a FASFA can get an unsubsidized Stafford loan with a decent rate for a couple thousand dollars. It goes straight to the university. If you already met your tuition for the year you get a refund check.

If he could get away with paying cash that is the best route, but getting a 3k Stafford loan isn't a bad deal. The rates are way better than any credit card you can find, and unlike most personal debt you can use the interest payments to offset some of your tax liability.

"The restraining order says you're only allowed to touch me in freefall"
=P

[baseknut 0]

thanks everyone,
but saving is the way i am gonna go.

thanks
jake

Step into my (sub)terminal Playground

[kelpdiver 2]

Quote

thanks everyone,
but saving is the way i am gonna go.

Financially, that's the wisest course. The key tenet to debt management is avoid it when possible. That's what most people learn after breaking it a few times. Not buying a new car instead of a much cheaper used one is a lesson I think nearly every 20some year old learns the wrong way. I traded mine in less than 3 years later - could have saved myself a lot of money.

I took on too many debts coming out of school on recreational pursuits. I don't fully regret this - I had a lot of good memories - but it did limit my options at times like when the tech economy crashed here.

[krouton01 0]

Actually, read something called a DEFERMENT PROVISION it does account for RISK, as you put it-- and all of your "what ifs" are covered in it. Thats why government student loans are such a great tool to utilize. The only thing wrong with your statement is you dont know what your talking about. All I was trying to do was give insite to something I knew a little about. A small loan with a great rate not a $126,000 loan for med school. I was not trying to start a debate about the merits of debt. To the original poster i'm glad you made your decision. You cant go wrong with saving (although you could pay off the loans EASILY with the money you spend on rental gear) To the others I guess we will agree to disagree.
"Never use your own money when you can use someone elses" Donald Trump

[hukturn 0]

I took out a signature loan from my Credit Union. Of course, the rig was only $650 (2pin mirage /24' Phantom / Raven III) but I was only making a whopping $8/hr at the time.

Just buy something safe and have fun. I even used my Visa to pay my Mastercard once just to be able to skydive. Okay, not really but only because Mastercard doesn't accept Visa. I have worked for skydives.