Editor's choice: LendingClub personal loans
- Loan range: $1,000-$40,000
- Coapplicants accepted
- No prepayment fees or penalties
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Buying an aircraft typically sets you back at least $100,000. If you don’t have that kind of money up front, there are several ways to finance it. However, you might not be able to get financing to cover the cost of ownership, which can run even higher than your monthly loan repayments.
There are a few ways you can pay for a new aircraft, including aviation loans, aircraft leases and personal loans.
When it comes to aviation loans, there are two types of lenders: those that specialize in aircraft financing and lenders that offer a range of loan products and services. Lenders that specialize in aviation financing also typically offer other products you might need when buying an aircraft, like insurance.
Typically, both types of aviation loan providers use your aircraft as collateral. You can usually borrow between 70% and 100% of your aircraft’s value with rates starting around 4%. Terms typically go as long as 20 years.
Rather than buying an aircraft, you can often lease it from an aircraft owner. You won’t have to pay as much or be solely responsible for maintenance expenses — which can add up. But you won’t own the aircraft outright.
All aircraft leases are regulated by the Federal Aviation Administration (FAA).
You might be able to cover part or even all of the cost with a personal loan if you’re buying an aircraft — especially a smaller, used model. Personal loans typically run from $5,000 to $50,000, though it’s possible to find funding up to $100,000 through some providers like SoFi. Rates typically start around 4% APR.
Generally, you need good to excellent credit to qualify for larger personal loans. Terms are also typically shorter on personal loans, often ranging from three to seven years. Shorter terms generally mean higher monthly repayments.
$5,000 to $100,000
US Aircraft Finance
Up to 25 years
Starting at $10,000
5 to 20 years
Bank of America Private Bank
Starting at $5 million
5 to 10 years
$75,000 to $1 million
Up to 20 years
It depends on the type of aircraft you’re interested in and whether you’re buying new or used. Most fall into the $100,000 to $500,000 range regardless of what type you buy. However, you can find some for as little as $25,000 and upwards of $1 million.
Here’s the price range you can expect for different types of aircrafts:
Light sport aircraft
$25,000 to $400,000
$50,000 to $600,000
$90,000 to $1 million
Calculate how much you could expect to pay each month
|Loan terms (in years)|
You’ll have more than your loan or lease payments to be concerned about when buying an aircraft. Take these other costs into consideration before hitting the skies:
Thinking of investing in your own set of wings? Here are a few pointers to find the best deal out there:
Buying an aircraft is less expensive than getting a private jet — at least up front. But additional costs like insurance and maintenance can sometimes cost you more than the aircraft itself. You can learn more about how financing works by visiting our guide to personal loans.
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