Classic aircraft from the 1970s, 1960s, and even earlier offer a unique charm and value proposition. However, financing an older aircraft requires a different approach, as lenders view them with more caution than their modern counterparts.
The Lender's Perspective on Older Airplanes
Lenders are primarily concerned with the long-term value and airworthiness of their collateral. With older aircraft, they face risks like parts obsolescence, potential corrosion, and a less predictable resale market. Because of this, many lenders have strict age cut-offs, often at 25 or 30 years.
Keys to a Successful Application
To get a loan approved for a vintage aircraft, you need to present a package that minimizes the lender's risk.
- Impeccable Maintenance Records: Complete, well-organized logbooks are non-negotiable. A detailed history of care gives lenders confidence.
- A Thorough Pre-Buy and Appraisal: An appraisal from an expert in vintage aircraft is needed to establish a credible value. The pre-buy must be exhaustive, specifically looking for age-related issues.
- A Larger Down Payment: Expect to put down more cash. A down payment of 25-30% is not uncommon for older aircraft.
- Strong Borrower Financials: Your personal financial strength must be excellent to offset the perceived risk of the asset.
We Know the Vintage Market
Our network includes specialty lenders who appreciate the value of classic aircraft. Let us help you connect with the right financing partner for your vintage plane.
Finance Your Classic AircraftExpect Shorter Loan Terms
Even with a strong application, be prepared for shorter loan terms. While a new aircraft might get a 20-year amortization, a 40-year-old plane is more likely to be offered a 10 or 15-year schedule. This is how lenders manage their long-term risk on aging assets.