Demystifying the Aircraft Loan Process

Understanding the elements of an aircraft loan

Once a pilot decides to purchase an airplane, the first major question becomes: how will you finance it? That’s where AOPA Aviation Finance can help simplify what might otherwise feel like a complex process.

“We work with multiple lenders and act as a broker,” said AOPA Senior Credit Analyst Brian Macbean. “Our role is to help you determine the best way to pay for your aircraft.”

Before diving into financing discussions, there are a few important steps to complete. First, you’ll need to identify the aircraft you plan to purchase—and the more specific you can be, the better. Loan terms, required down payment, and interest rates all depend on the particular airplane you choose. If you already have a specific aircraft in mind, AOPA Aviation Finance can guide you through each step of the loan process.

Second, lenders will want to understand how you intend to use the aircraft. Whether it will be used for personal travel, business purposes, leaseback to a flying club, or charter operations can significantly influence financing options.

When it comes to documentation, applicants must complete a loan application—AOPA offers a streamlined online version to make this easier. Lenders typically require two years of tax returns, W-2 forms, and a current income statement, such as a recent pay stub, to verify earnings. Even if you haven’t selected a specific airplane, having a general category and price range in mind will help move the process forward.

If you’ve chosen a specific aircraft, you’ll also provide a spec sheet. This allows AOPA to compare the aircraft’s value against industry benchmarks like Vref or the Aircraft Bluebook. Lenders will base financing on either the purchase price or the appraised value—whichever is lower.

Unlike auto financing, aircraft loans are not typically approved on the spot. While a car loan might be completed in under an hour, aircraft financing usually takes a few days due to the need for a thorough credit evaluation.

Great advice. Great rates. Helpful and responsive reps you can trust. Three good reasons to turn to AOPA Aviation Finance when you are buying or refinancing an airplane. If you need a dependable source of financing with people who are on your side, just call 800.62.PLANE (800.627.5263), or click here to request a quote.