How to Finance a Used Aircraft (Without Getting Burned)

Financing an aircraft is not like financing a car. The lenders are different, the terms are different, and the aircraft itself has to qualify — not just the buyer. First-time buyers routinely get surprised by age restrictions, down payment requirements, and lender conditions they did not know existed. Here is how aviation financing actually works.

Aviation Lenders Are a Small Market

You will not be financing your Cessna 172 through your credit union's auto loan department. Aviation lending is a niche market with a handful of major players. The main ones:

AOPA Finance. The Aircraft Owners and Pilots Association runs one of the largest aviation lending programs in the country. Rates and terms are competitive, and they understand aircraft as collateral. AOPA membership is not required to use their financing.

Dorr Aviation Credit. A dedicated aviation lender with experience across the full range of GA aircraft — from basic singles to light turbines. Known for working with aircraft that other lenders find complicated.

AeroLoan. Offers fixed and variable rate loans on single and multi-engine aircraft. Straightforward application process and reasonable minimums.

USAA. For military members and their families, USAA offers aviation loans with competitive rates. Limited to their membership.

Local banks and credit unions with aviation programs. Some regional banks in aviation-heavy areas have aviation loan departments. Worth calling around, especially if you have an existing relationship.

Avoid general consumer lenders who do not understand aircraft collateral. A lender who treats your Cherokee 180 like a boat loan is going to quote you terms that reflect their uncertainty about the asset.

Typical Loan Terms

Aviation loans for GA singles typically look like this:

• Loan amounts: $15,000-$500,000 for most GA lenders. Below $15,000 is hard to finance — buy a cheaper aircraft outright or save up.
• Down payment: 15-20% is standard. Some lenders go to 10% for strong borrowers. Factor this into your budget before you start shopping.
• Loan term: 10-20 years is common. Longer terms lower the monthly payment but increase total interest paid. A $60,000 loan at 8.5% over 15 years is $590/month. Over 20 years, it is $522/month — but you pay $25,000 more in interest.
• Interest rates: Aviation loan rates track roughly with home equity rates, not car loan rates. As of early 2026, expect 7.5-9.5% fixed on a qualified aircraft and borrower. Variable rates start lower but carry rate risk.
• Prepayment penalties: Ask before signing. Some aviation loans have prepayment penalties in the first few years. If you plan to sell or upgrade within 3-5 years, this matters.

The Aircraft Has to Qualify Too

This is what catches buyers off guard. Aviation lenders underwrite the aircraft, not just the borrower. A perfect credit score does not save you if the aircraft does not meet the lender's collateral standards.

Age limits. Most aviation lenders have maximum aircraft age rules. Common thresholds: 25 years (aggressive lenders), 30 years, or 35 years from manufacture. A 1978 aircraft is 48 years old in 2026 — that eliminates it from most conventional aviation financing. If you are buying a vintage aircraft, plan to pay cash or find a lender who specializes in older GA planes.

Airworthiness. The aircraft must be in airworthy condition at the time of purchase. The lender will typically require a current annual inspection. Some require a pre-purchase inspection report.

Title search. Aviation lenders pull an FAA title search before closing. Any liens on the aircraft must be released before the loan funds. If the seller has a loan outstanding on the aircraft, it gets paid off at closing from the sale proceeds — same as real estate. Use an aircraft title company (Aero-Space Reports, AVEMCO Title, etc.) to handle this.

Hull insurance. The lender will require you to carry hull insurance for the value of the aircraft. Get an insurance quote before you get too far into the purchase — hull insurance on a vintage aircraft can be expensive or limited.

What the Lender Looks at on the Borrower Side

Standard credit underwriting applies:

• Credit score: Most aviation lenders want 680+ for standard terms. Below 650, options narrow sharply.
• Debt-to-income ratio: Total monthly debt payments (including the new aircraft payment) should be under 43-45% of gross monthly income. This is where buyers who already carry a lot of car loan and mortgage debt run into trouble.
• Employment history: Two years of stable employment or self-employment income documentation.
• Liquid reserves: Some lenders want to see 3-6 months of loan payments in reserve after the down payment. If your credit is good and your income is solid, the aircraft age restriction is usually the harder constraint.

The Cash vs. Finance Calculation

If you have the cash to buy outright, run the numbers before assuming financing is better.

On a $75,000 aircraft at 8.5% over 15 years:

• Monthly payment: $738
• Total interest paid over 15 years: $57,840
• Total cost of the aircraft: $132,840 If that $75,000 cash earns 5% in a money market or Treasury, that is $3,750/year — $56,250 over 15 years in interest income you would give up by paying cash.

The math usually favors financing when borrowing rates are close to investment returns. At 8.5% borrowing vs. 5% returns, cash wins — but not by as much as the raw payment number suggests. Run your own numbers with your actual rates before deciding.

Most buyers finance because they do not have $75,000 liquid, not because the financing math is superior. That is a valid reason. Just go in knowing the true cost.

Co-Ownership and Partnerships

If financing is hard to qualify for, or if ownership costs alone are too high, co-ownership is worth considering. Two pilots sharing a Cherokee 180 split the fixed costs — hangar, insurance, annual — in half. Financing $35,000 each is considerably easier than financing $70,000.

Co-ownership works best with a written agreement covering: scheduling priority, maintenance decision rights, expense sharing formula, and buyout terms if one partner wants to exit. Do not skip the agreement — informal arrangements between friends go bad when the first $3,000 engine bill arrives.

Getting Pre-Qualified Before You Shop

Get pre-qualified before you make an offer. Here is why:

1. You know exactly what you can spend.
2. Sellers take offers from pre-qualified buyers more seriously.
3. You avoid falling in love with a 1975 aircraft you cannot finance. Pre-qualification takes 15-20 minutes with most aviation lenders and does not require a hard credit pull in most cases. AOPA Finance and Dorr both offer quick online pre-qualification.

Bottom Line

Aviation financing is available, but the aircraft age rules eliminate a large portion of the used market from conventional loan eligibility. If you are buying a post-1995 aircraft with clean title and good maintenance history, financing is straightforward. Older aircraft, cash is often your only option — or a patient search for a lender who specializes in vintage GA.

Browse aircraft listings on List Buy Fly — filter by price range to find what fits your budget before you call a lender.

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Written by the List Buy Fly editorial team — pilots writing for pilots.