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Collateral Differences
Jets and turboprops differ in maintenance programs, engine/APU cycles, and market liquidity. Popular, well-supported models (CJ/Phenom; PC‑12/TBM/King Air) generally see stronger pricing and LTV. Older or specialty airframes may require higher down payments or carry tighter terms.
Terms & Rates
- Amortization: 7–15 years common; some jets favor shorter amortization, turboprops can reach longer terms depending on age and use.
- Rates: Risk‑based; engine/APU programs and usage matter. See 2025 rates.
- Balloons: Widely used to balance payment vs exit risk; see balloon guide.
Usage & Insurance
Part 91 vs 135 usage affects underwriting and insurance. Jets under 135 require higher training standards and may change LTV or rate. Coordinate early; see insurance requirements.
Side‑by‑Side Modeling
- In the calculator, set representative jet and turboprop scenarios (price, down, APR, term, frequency).
- Add a 10–20% balloon in each; export CSVs; compare payment and total interest.
- Stress APR ±100–200 bps and resale assumptions; confirm balloon feasibility.
FAQs
Do jets always cost more to finance?
Not necessarily—popular light jets can price close to turboprops for strong borrowers with solid collateral and usage plans.
Can a turboprop get a longer term?
Often; strong liquidity (PC‑12/TBM/King Air) can support longer amortization vs some jets.
Related Articles
External: FAA Registry · NBAA · AOPA