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Solutions in Business Aviation

Solutions in Business Aviation 2024

Congratulations—you’ve decided now’s the time to move up to a turboprop. While there are plenty of decisions still to be made, one of the biggest is who will handle your financing package.
“But wait,” you say. “I’m nowhere close to financing. I haven’t even found the right airplane.” Ah, but waiting is one of a buyer’s biggest mistakes. And the reasons go well beyond just being “pre-qualified.”
As AOPA Finance Director of Credit &amp; Sales Brian Macbean explained, there are a lot of factors that impact the loan rate available to a borrower, especially when it comes to turbine-powered aircraft. The aircraft’s age, loan amount, down payment, term length, usage and even the borrower’s previous experience with turbine aircraft operations all play a role. If it sounds complicated, it’s because aircraft financing is different than what most people are used to. That’s why you need to start the financing process early and should have a turbine aircraft financing expert on your side.
“We’ve handled thousands of aircraft loan transactions, so we have a lot of experience and insights into which lenders are going to be the best match for a particular buyer,” he said. “There are some lenders who prefer particular aircraft and will offer better terms on those models. That means faster approvals and lower interest for borrowers.”
Macbean stressed that this doesn’t mean that the airplane models that&nbsp;lenders find less desirable are unsafe or inefficient; it means that they are looking for qualities such as an aircraft’s utility and resale value. For example, right now, the Pilatus PC-12 and Cessna CJ3 are two examples of aircraft that lenders like.
“There is so much utilitarian value in these aircraft that lenders are eager to finance them,” he continued. “Some lenders also prefer to finance aircraft that are more expensive. With a larger purchase price, you’ll likely have slightly better terms available because these lenders have more interest given the dollar amount of the loan.”
<h2>Avoiding turbine-related transactional turbulence.</h2>
Macbean also shared other insights into how lenders look at turbine aircraft differently than piston models.
“Buyers don’t know that most lenders require turbine aircraft to be on some type of engine program to get a loan,” he said. “They also want to know if the aircraft will be operated under Part 91 or a Part 135 certificate. All that impacts the length and type of financing available.”
“Our only business is aircraft financing, so our experience allows us to put transactions together in the most beneficial ways .” Macbean continued, “AOPA has a strong reputation for helping our members with their aircraft and aviation needs, because of this reputation AOPA Finance is able to provide our members with access to the best lenders and the best possible financing options. Working with AOPA Finance means you have a team dedicated to the success of your aircraft purchase.”

Issues regarding financing of aircraft; aviation insurance; tax issues for aircraft operators; new companies and people in the aviation financing and insurance industries.

Secure the best loan for your turboprop purchase

For over 10 years, owners of all classes and categories of aircraft have been trusting AOPA Finance’s experience and expertise to help them obtain the best financing package available while avoiding any transactional turbulence.

For over 10 years, owners of all classes and categories of aircraft have been trusting AOPA Finance’s experience and expertise to help them obtain the best financing package available while avoiding any transactional turbulence.


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