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What Buyers Should Expect in 2025
Rates reflect market funding costs, lender risk appetite, and collateral quality. Turboprops and newer light jets often price tighter than older, unique, or higher‑time aircraft. Your personal underwriting (credit, liquidity, LTV) and usage (Part 91 vs 135) further shape offers.
Key Drivers of APR
- Credit profile: FICO, DTI/DSCR, liquidity, aviation experience.
- Collateral: Age, total time, maintenance status, market liquidity.
- Structure: Term length, amortization, balloon, frequency, and recourse.
- Economic context: Treasury yields and lender cost of capital; see Fed rate impact.
Rate Texture by Type
Pistons: Wide dispersion by age/avionics/engine time. Turboprops: PC‑12/TBM/King Air see robust lender interest. Light jets: Strong programs for CJ/Phenom; niche types may price wider. Helicopters: Usage and component times are key.
Structure Effects
- Fixed vs variable: See comparison and stress test paths.
- Frequency & compounding: See payment frequency.
- Balloons: Lower payment now; add end‑of‑term risk; see balloon guide.
Model Your Scenario
Use our aircraft loan calculator to compare: monthly vs quarterly, different down payments, and a 10–30% balloon. Export the amortization schedule and sum total interest. Run Base/High/Low rate paths to reflect uncertainty.