The different financing options
Buying a light aircraft represents a significant investment, generally between €50,000 and €300,000 depending on the model and condition. Whether you are an enthusiast buying privately or a professional building a fleet, several financing options are available to you.
| Solution | Who it's for | Down payment | Strengths |
|---|---|---|---|
| Bank loan | Individuals and businesses | 20 to 30% | Ownership from day one, free resale |
| Finance lease / leasing | Professionals, companies | 0 to 15% | Deductible rent, purchase option |
| Co-ownership | Individuals | Share of the price | Fixed costs split |
| Cash payment | Everyone | 100% | No interest, easier negotiation |
The classic bank loan
Banks offer consumer loans or dedicated loans for purchasing an aircraft. Interest rates generally range between 3.5% and 6% depending on your profile and the loan term. Most lenders require a down payment of 20 to 30% of the purchase price.
Typical loan terms range from 5 to 10 years. Some brokers specialising in general aviation negotiate more favourable terms than traditional banks, which are often unfamiliar with this type of asset.
Aircraft finance lease
Aircraft leasing lets you use the aircraft for a set period (3 to 7 years) in exchange for monthly rent, with a purchase option at the end of the contract. Tax advantage: the rent is deductible if the aircraft is used for professional purposes — an option often favoured by dealers and operators.
Co-ownership
Buying an aircraft jointly (2 to 5 co-owners) splits the initial investment and the fixed costs. A clear co-ownership agreement is essential to define the rules for use, maintenance and resale.
- Allocation of flight hours and a booking system.
- Cost-sharing formula for fixed costs (hangar, insurance, annual inspection) and variable costs (fuel, remaining engine potential).
- Exit procedure for a co-owner and pre-emption rights for the others.
Costs to plan for beyond the purchase price
The purchase price is only part of the budget. For a single-engine light aircraft, also plan for:
| Item | Order of magnitude |
|---|---|
| Liability insurance (+ hull) | €800 to €3,000 / year depending on engine size |
| Annual inspection (Part-M / Part-ML) | €500 to €2,000 |
| Avgas 100LL fuel | €2.5 to €3.5 / litre |
| Airfield parking | €50 to €300 / month |
| Engine overhaul (TBO) | €15,000 to €40,000 every 1,500 to 2,000 hours |
Preparing your financing file
A complete file speeds up the decision and improves the terms you obtain. Gather a precise description of the aircraft (make, model, year, airframe and engine hours), the pre-purchase inspection report, an insurance quote and proof of income.