What Does It Take to Buy Your First Aircraft?

The aviation community continues to expand every year, and the light sport aircraft market has flourished recently. With the growing number of aviation clubs, hobby groups, events, and publications, you may be wondering if you could have access to an aircraft, or maybe you’re already a student pilot or a member of a flying club with flying hours under your belt and want to own your own aircraft. 

If you haven’t already decided, you first need to determine what type of plane best suits your needs and your financial situation. For some, a light sport aircraft (LSA) model with two seats fits their mission. A large family, on the other hand, may need a six-seater. Whichever aircraft fits your need, unbiased, useful information can be hard to find.  

The Aviation Consumer offers deep dive used aircraft guides for many makes and models to get you started. If you want to see the technical details of head-to-head comparisons, check out FLYING’s Air Compare series and AvBuyer’s comparison series. After you’ve narrowed down your search, set up email alerts on Aircraft For Sale.

Cost considerations don’t stop at sticker price, of course. Aircraft ownership, like ownership of any other vehicles or assets, comes with inherent yearly, monthly, and usage-based costs. 

While there are a range of costs and requirements depending on model, region, and intended purpose of your aircraft, there are several regular fees you’ll have to take into account in any budget. We’ve broken them down into fixed costs and variable costs.

Fixed costs must be paid regardless of how many hours you fly.

Aircraft insurance 

Every aircraft owner must have liability insurance to legally fly or operate in controlled airspace, but for obvious reasons, it’s prudent to have an insurance plan that covers damage and loss of use, where applicable. 

Hangar fees

Unless you already own your own hangar or storage facility, you will typically need to pay rental storage fees to properly store and protect your plane. 

Variable costs depend greatly on many factors, including how often you fly and what model you have.

Fuel 

Fuel costs will vary greatly based on type of aircraft and distances you fly it. It’s an excellent idea to research fuel costs based on your region and preferred type of aircraft before factoring fuel into a budget.

Maintenance 

Maintenance and inspections are constant, ongoing costs of aircraft ownership. Regular maintenance is essential for not only the safety and longevity of your aircraft but also for remaining compliant with requisite inspections and regulations. Finding a certified mechanic is vital, and labor can be costly. Check out this guide for Cessna 172 annual maintenance costs for a budget example. 

Repairs

Like any piece of equipment, an aircraft can be prone to a major failure outside of the manufacturer’s maintenance schedule. While some repairs may be relatively minor, such as cosmetic fixes or worn item replacement (i.e., tires or lightbulbs), a major issue could appear at any time, such as vacuum pump failure or a gasket leak. 

Whether or not you have the means to purchase an aircraft in cash, it’s worth considering your financing options.

There are many benefits to financing all or part of the value of your aircraft. By taking advantage of long-term and low-rate financing, you can have the right aircraft for your mission right now while keeping liquid capital to deploy more effectively in your business or other investments. 

In most cases, your return on investment will make it worth holding onto your capital and will outpace interest rates, but you will need to shop around to secure the best rates. 

There are several options available to help you finance your aircraft purchase:

Bank loan

Traditionally, the most common method of financing a large purchase would be a standard bank loan. However, most lenders know very little about underwriting airplanes, so it may be difficult to find a bank that will give you the best terms for aviation financing.

As with houses, cars, and boats, an aircraft loan typically comes at either a fixed rate or a floating rate and is dependent on credit worthiness and down payment. Loans are typically structured for as short as 30 months or as long as 180 months, with amortizations up to 240 months.

Lease

Leases are an alternative option that removes the commitment of purchasing. In a typical lease agreement, the lessee rents an aircraft for a specified period of time, often with the option to purchase at the end of the contract. Your business may choose to lease instead of buy depending on cash-flow considerations, but keep in mind that leasing means you are spending money that you will never get back, as it doesn’t contribute to equity.

Aviation financing

Compared to traditional loans and leases, financing through an aviation lending specialist provides the most advantages for any aircraft purchase. 

Unlike traditional banks, a specialist such as FLYING Finance has access to capital markets that understand airplanes and want to get you approved to fly.

FLYING Finance provides tailored financing solutions for business jets, piston aircraft, turboprop aircraft, helicopters, and more. With technical knowledge about your purchase and a network of experts, FLYING Finance can work with you to get you the best possible rates, payment plans and protections. 

FLYING Finance is more than a loan facilitator—it is a trusted aviation financing partner and part of a comprehensive aviation ecosystem, dedicated to enriching your aviation journey. The FLYING portfolio of aviation websites and services covers everything from expert advice on aircraft ownership to safety tips, providing you access to the best resources in the industry. 

Aircraft partnerships

FLYING Finance also facilitates financing for aircraft partnership agreements (sometimes called fractional ownership agreements), wherein multiple individuals come together to finance an aircraft. In these cases, all partners act as guarantors, usually with equal responsibility. This is a great way to have access to a private aircraft while splitting the cost and can be done for hobby or business purposes. 

Whatever aircraft you choose and whatever finance options work best for you, buying your first plane can be possible with the help and resources of a trusted team of experts. Connect with FLYING Finance team members today to discuss the details of your finances and the steps of the application process.