buying an aircraft

NAFA member Preston Holland, President and Founder of Prestige Aircraft Finance, shares his latest article on using a broker or direct lender.

Go directly to a lender when you already have a strong private-bank relationship and a simple deal, such as a newer aircraft, a clean credit file and 20 percent or more down. Use an aircraft finance broker when you want several lenders competing, the aircraft is older or unusual, the ownership structure is complex, or a lender has already said no.

Most buyers start the financing conversation with the bank they already know. Sometimes that is exactly the right call. Other times, the buyer spends weeks with a lender that was never going to approve a 20-year-old turboprop, and the closing date slips. The right aircraft financing for your deal depends less on any single lender and more on whether the lender’s credit box matches your aircraft, your profile and your timeline.

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This article was originally published by Prestige Aircraft Finance on October 16, 2026.

NAFA member SOLJETS released their latest article on what keeps a private jet acquisition moving.

A business opportunity opens. Your travel schedule changes. The right aircraft becomes available. Suddenly, buying a private jet has a deadline. 

An efficient closing is achievable when the aircraft, buyer, seller, and transaction team are prepared. The transaction timeline generally starts once an aircraft is selected and commercial terms are agreed, not when the search begins.‍

The following illustrates how a straightforward domestic transaction can progress when the pieces are in place. Inspection findings, financing conditions or international requirements can extend the timeline.

Before Day 1: Define Your Mission and Prepare Your Funds‍

Decide your required range, typical passenger count, runway needs, and acquisition budget before evaluating aircraft. Separate requirements from preferences. A specific cabin finish should not distract from whether the aircraft can reliably serve your destinations.‍

If financing, give your lender financial statements and ownership information early. Ask what aircraft-specific approvals, appraisals, and documents remain outstanding. Preliminary approval is not the same as funds ready to close.‍

For cash purchases, confirm liquidity and transfer timing. Choose your aviation attorney, tax advisor, and escrow provider before negotiating.
 

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‍This article was originally published by SOLJETS on October 2, 2026.

NAFA member Adam Hahn, CEO and Founder of Arcadia Jets, shares his latest article on why aircraft valuation matters.

Aircraft Valuation Is More Than a Number

When buyers and sellers discuss aircraft transactions, one question inevitably rises to the top: what is the aircraft worth? While the question sounds simple, the answer is often far more complicated than expected. Aircraft valuation involves much more than reviewing asking prices or comparing similar models online. Every aircraft has its own maintenance history, equipment configuration, ownership record, and market position, all of which influence value.

A proper aircraft valuation provides the context needed to make informed decisions. Buyers use valuation information to determine whether an aircraft represents a fair opportunity. Sellers use it to establish realistic expectations and develop effective pricing strategies. Without a clear understanding of value, both sides risk making decisions based on assumptions rather than market realities.

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This article was originally published by Arcadia Jets on September 29, 2026.

NAFA member Brian Finley, Aircraft Lender at Scope Aircraft Finance, shares his latest article in Issue #25 of the October 2026 Edition of The Plane Truth.

I climbed a mountain in the Smokies last month, reaching the peak at 6,594 feet. By the time this article is published, I’ll hopefully have completed hiking my first two 14ers in the Rocky Mountains (mountain tops above 14,000’). So is my climb in the Rockies that much more difficult, or does the challenge depend on distance and the field elevation at the start of the climb? ‍

Many people are contemplating how higher interest rates today (compared to the past decade but much closer to long-term historical averages) will affect business and whether customers choose to finance. Higher rates will definitely require a harder look at how one deploys their cash. Just as a mountain's summit elevation doesn't tell the whole story, the stated interest rate alone shouldn't determine whether financing makes sense. 

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T‍his article was originally published on October 19, 2026 in Issue #25 of the October 2026 Edition of The Plane Truth.

NAFA member Tara Czop, Engagement & Closing Specialist at OGARAJETS shares her latest article in the Q3 Fall 2026 Edition of Jet Whisperer.

Every fall, the business aviation market seems to transform. As Q4 approaches, it feels like the atmosphere shifts from strategic planning to a high-stakes sprint. Corporations and high-net-worth individuals move with urgency to finalize aircraft acquisitions or dispositions before the calendar turns. Drive by year-end tax incentives, fiscal budget deadlines, and upcoming holiday travel, the rush is understandable, but it also introduces the element of risk.

In this market, top-quality inventory vanishes in days, pre-purchase inspection facilities are booked solid through January, and supply chain delays can stall a transaction over a single backordered part. Every delay trickles down to the entire transaction ecosystem, including brokers, escrow agents, lenders, attorneys, tax advisors, and even the FAA.

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This article was originally published by OGARAJETS on October 20, 2026 in Jet Whisperer, Q3 Fall 2026 Edition, page 16-19.

NAFA member David Fisher, President of Western Aviation, shares his first article in a new series of monthly articles about why fair market, orderly liquidation and forced liquidation values each answer a different credit question, and what a lender-grade appraisal should show for each.

Every aircraft loan rests on a number. The question is whether that number describes the aircraft actually sitting in the hangar, or an average aircraft of the same make, model and year.

Published value guides and asking prices are useful starting points. They are not collateral analysis. Two business jets with the same model year and similar total time can be hundreds of thousands of dollars apart once engine status, inspection timing, avionics, damage history and records quality are accounted for. A lender who advances against the average is lending against an aircraft it does not own a lien on.

Three values, three questions

A lender-grade appraisal should state more than one value, because a lender faces more than one scenario.

• Fair Market Value (FMV) is the most probable price between a willing buyer and a willing seller, neither under compulsion, with adequate marketing time. It answers: what is this asset worth in a normal sale?
• Orderly Liquidation Value (OLV) assumes a seller under some pressure but with a reasonable exposure period, typically 90 to 180 days with a competent broker. It answers: what do we recover if we have to sell?
• Forced Liquidation Value (FLV) assumes an auction-style sale under severe time constraint, often within 30 to 45 days. It is the floor.

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This article was originally published by Western Aviation on October 16, 2026. 

NAFA member Kyle O'Donnell, Aviation Sales Executive at Elevex Capital, shares his latest article about why older business aircraft can be good assets despite banks’ age restrictions on financing them.

For owners and for the professionals who sell to them, the operating rule is simple: if the decline was really about the calendar, the problem was never the aircraft. It was the wrong lender.

The average business jet in the U.S. fleet is roughly 18 years old — JETNET and Airbus Corporate Jets have both put the figure in that band. Sit with that number for a second, because it is the single most consequential fact in business aviation finance, and it's poised to become more consequential.

Almost all lenders prefer newer aircraft. Most bank aviation programs cap airframe age at 15 years at loan maturity. Plenty prefer 10 at funding. That leaves a huge gap in the market: Secured Research analysis of the U.S. registry puts more than 60% of active business jets — call it 9,000-plus tails — outside the standard bank credit box on age alone. Before anyone pulls credit, before anyone reads a logbook.

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This article was originally published by Elevex Capital on September 28, 2026. 

NAFA member Mike Smith, President of Scope Aircraft Finance, shares his latest article in The Plane Truth.

As was widely anticipated, the Federal Reserve Open Market Committee (FOMC) increased its target rate by 0.25% at the conclusion of its meeting on September 16. This was the first rate increase in over 3 years, and in reading the tea leaves after the meeting, we should expect another 0.25% increase by the FOMC before the end of the year.​

This is a material change in posture compared to where we started in 2026. At the start of the year, the market expected rate cuts from the FOMC. What happened? Ultimately, it goes back to the Federal Reserve’s “dual mandate” of maximum employment and price stability (defined as a 2% inflation rate). And as we all know, inflation continues to run a little hot.

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This article was originally published in Issue #24 of The Plane Truth on September 24, 2026.

Industry experts discuss with Felipe Reisch how today’s aircraft financing solutions can support a healthier cash flow, greater financial flexibility, and a more strategic long-term aircraft ownership.

Purchasing a business aircraft is often viewed as a significant capital investment, but the way that investment is financed can have implications extending well beyond the acquisition itself. After all, for many buyers, aircraft financing is not just about reducing the upfront cost.

When structured appropriately, aircraft finance can become an important tool for preserving liquidity, supporting business growth, and maintaining greater control over cash flow throughout the ownership cycle.

Don’t Treat Aircraft Finance as a ‘One-Size-Fits-All’ 

There is no universal financing structure that works for every aircraft acquisition. The right solution depends on the buyer’s financial position, operational requirements, ownership objectives and long-term business strategy.

In fact, many aircraft buyers can afford to purchase their plane in cash, but that doesn’t automatically mean cash is the most efficient use of capital, notes Alex Kowtun, Co-Founder at Palm Beach Jets. “Financing can allow the buyer to preserve working capital for operating needs, acquisitions, inventory, hiring, growth initiatives, or reserves for the aircraft itself.”

Hannah Davis, Vice President of Sales, Mid-Atlantic/Southeast US at Global Jet, believes that financing changes the game by transforming a massive, lump-sum capital expenditure into a predictable, structured operating expense.

“By preserving that liquidity, companies maintain the financial flexibility to respond to market opportunities or navigate economic downturns, all while securing the critical business tool they need to grow.”

She argues that buying a business jet outright ties up a large amount of liquid capital in a highly specialized, depreciating asset. “For high-growth companies or corporate flight departments, that capital almost always generates a higher return when it is reinvested back into core business operations, R&D, or strategic acquisitions.”

Steve Olson, Director of Airplane Finance at Commerce Bank, agrees, noting that while some owners choose to use cash or existing credit facilities to acquire an aircraft, financing secured by the aircraft itself can preserve liquidity and maintain borrowing capacity for other strategic investments, acquisitions, or operational needs.

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This article was originally published by AvBuyer on September 7, 2026.

NAFA member Adam Hahn, CEO and Founder of Arcadia Jets, shares his article on why to use a private jet broker.

The Difference Between Shopping and Buying

Most aircraft buyers begin their search online. Within minutes, they can compare performance specifications, cabin dimensions, range capabilities, and asking prices across multiple aircraft models. While access to information has never been greater, information alone rarely leads to a successful acquisition. The challenge is not finding aircraft. The challenge is determining which opportunities deserve serious consideration.

A private jet broker helps buyers move beyond listings and marketing materials. Rather than focusing exclusively on what an aircraft can do, a broker evaluates whether it aligns with the buyer’s mission, budget, ownership objectives, and long-term plans. This perspective helps buyers avoid costly mistakes while creating a more efficient acquisition process. At Arcadia Jets, we often remind clients that the right aircraft is not necessarily the most expensive or most capable option. It is the aircraft that best supports the owner’s goals.

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This article was originally published by Arcadia Jets on September 22, 2026.

NAFA member Adam Hahn, CEO and Founder of Arcadia Jets, shares his article on how aircraft sales experts add value.

Aircraft Sales Involve More Than Finding a Buyer

Many aircraft owners assume that selling an aircraft is simply a matter of placing an advertisement and waiting for inquiries. While marketing certainly plays an important role, successful aircraft sales involve far more than exposure. Pricing strategy, market timing, buyer qualification, documentation, inspections, negotiations, and transaction management all influence the final outcome.

The challenge is that buyers today are more informed than ever. They have access to detailed specifications, market data, and competing inventory from around the world. As a result, sellers must do more than simply list an aircraft. They must position it effectively within the marketplace and communicate its value in a way that resonates with qualified buyers. This is where experienced aircraft sales professionals create significant value.

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This article was originally published by Arcadia Jets on September 15, 2026. 

NAFA member AOPA Finance shares their article on the costs beyond the aircraft loan.

Similar to other large purchases, there are costs associated with buying an aircraft.  One of the primary advantages of using AOPA Finance as your finance broker is that we do not charge a fee for our services. As a member of AOPA, our aircraft financing services are included as part of your membership. The other costs associated with an aircraft loan include lender closing costs; title and escrow fees; aircraft broker’s fee (if you use an aircraft broker); pre-purchase inspection costs; CPA/legal fees to correctly set up the ownership structure and understand the tax liability of aircraft ownership; and in some cases, aircraft appraisal fees.

All lenders have closing costs, which typically range from a few hundred to a few thousand dollars. The amount varies from lender to lender, and is often determined by the size of the loan and the aircraft type. In the case of piston aircraft loans, closing costs are  usually a flat, fixed fee. Turboprop and jet closing costs tend to be a percentage of the loan. Lender closing costs are intended to cover things like  documentation, processing and aircraft valuation costs.

Whenever a loan is customized, plan on the closing cost being customized too.  Loans customized for specific situations often don’t have the benefit of using standard documentation or processes, so the cost structure is likely to be different.

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This article was originally published by AOPA Finance on September 21, 2026.

NAFA member AOPA Finance shares their article on aircraft loan fees.

One of the primary advantages of using AOPA Finance as your broker is that we do not charge a brokerage fee for our aircraft loans. That service is included as part of your membership.

However, there are other costs associated with an aircraft loan in general. They include closing costs; escrow; title search fees; broker’s fee (if you don’t go through AOPA Aviation Finance); CPA/legal fees to correctly set up the ownership structure and understand the tax liability of aircraft ownership; pre-purchase inspection fee; and aircraft appraisal fee.

All lenders issue a closing cost, typically a few hundred to a few thousand dollars. That cost is determined by the size of the loan and the aircraft type. The actual cost varies from lender to lender. In the case of piston aircraft loans, it’s usually a flat, fixed fee. Turboprop and jet closing costs tend to be a percentage of the loan. In all cases, documentation, processing and aircraft valuation costs are folded into those closing costs.

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This article was originally published by AOPA Finance on September 11, 2026.

NAFA member SOLJETS releases their latest article on why September is the right time to begin a year-end aircraft acquisition.

Every December, the pressure starts to build in the business aircraft market. A buyer has found a promising aircraft. The tax strategy makes sense. Everyone wants to close before year-end.‍

Then the pre-purchase inspection uncovers corrosion, the inspection facility does not have availability, or the aircraft is not ready in time to complete the required business flight before year-end.‍

December did not create the problem. The calendar simply exposed it.‍

For buyers who want to own and begin using an aircraft by year-end, September is often the practical starting point. It is early enough to make a disciplined decision, yet close enough to year-end for tax planning, capital budgets, and travel requirements to be reasonably clear. More importantly, it leaves room for the parts of an aircraft transaction that cannot be rushed without adding risk.‍

Start With the Mission, Not the Deadline‍

A December 31 target can focus a transaction. It should not dictate which aircraft you buy.‍

The first question is still operational: What does the aircraft need to do? That means looking honestly at passenger count, typical stage length, runway requirements, baggage needs, preferred cabin, annual utilization, crew model, and operating budget. An aircraft that looks attractive in a listing may be the wrong fit once real missions and ownership costs are considered.‍

Beginning in September gives the acquisition team time to compare models and individual aircraft on more than asking price. Maintenance status, engine and auxiliary power unit programs, upcoming inspections, damage history, avionics, connectivity, cabin condition, and resale position can materially change the economics of two otherwise similar airplanes.‍

This is where market knowledge matters.  A strong acquisition process should answer three separate questions: Is this the right model? Is this the right aircraft? Is this the right deal? Those answers are related, but they are not interchangeable.

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This article was originally published by SOLJETS on September 13, 2026.

NAFA member David G. Mayer, law partner in the Global Aviation Group at Shackelford, McKinley & Norton, LLP, shares his latest article about the use of AI in aircraft deals.

Use AI cautiously and assess its output.

I am having fun using artificial intelligence (AI) in my professional and personal life, watching it comb the Internet, dig up data, and synthesize it for me.

Having used AI in actual aircraft deals and disputes, I find it a little scary how much it can accomplish in its infancy and the dangers it poses. The age of AI is here to stay, and it behooves us to at least understand it generally, if not use it.

AI can generate market research, draft reports and agreements, summarize mountains of data, and analyze or calculate pertinent metrics. In my legal practice, AI has helped me with research, summarizing articles and legal analysis, improving or correcting drafting, and flagging inconsistencies or errors in aircraft purchase agreements (APAs) and other documents. As its use expands, AI may lower transaction costs. It is not a panacea, but it can undeniably be a useful tool.

AI Conundrum

AI may save you time and improve your productivity, but it makes mistakes. That’s no secret. For me, AI lacks judgment; provides debunked, incorrect, or flawed analysis; and makes subtle or obvious errors I would rather not spend more time validating or correcting.

I haven’t yet encountered “hallucinations,” meaning the generation of incorrect, misleading, or nonexistent content. Recently, an experienced lawyer, who believed ChatGPT produced a “bulletproof” case summary, submitted it to a New Mexico court. ChatGPT did hallucinate: the summary contained nonexistent witnesses and fictional testimony. Reacting to his admitted “stupidity,” the court held him in contempt, fined him, and initiated an ethics review. 

Before the New Mexico case, on July 29, 2024, the American Bar Association issued Formal Opinion 512, stating that there is no “AI exception” to professional responsibility when using generative artificial intelligence (GAI). This implied warning doesn’t apply only to lawyers. Anyone who uses GAI or AI (AI) must tap into these systems judiciously and not depend on the results without due diligence. In short, distrust and verify AI, but don’t forsake it, because it will improve with more time.

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This article was originally published by AINsight on September 11, 2026.