Short answer: Pre-owned business jets are typically bought with cash, a secured aircraft loan, or a lease. Lenders assess the borrower's financial strength, the aircraft's age, model liquidity and condition, the registration and operating structure, and the planned use. Many lenders limit financing on older aircraft, so buyers of 15–25-year-old large-cabin jets are often cash buyers. Arrange financing pre-approval before signing an LOI so it does not delay closing.
Financing options
- Secured loan: the aircraft is collateral; a full appraisal is usually required.
- Finance or operating lease: can suit corporate structures and tax planning.
- Cash with later refinancing: fastest to close, with financing arranged afterwards if desired.
What lenders review
- Borrower credit and liquidity
- Aircraft model, age, hours and maintenance status
- Engine program enrolment
- Registry and ownership structure (and Cape Town Convention filings where applicable)
- Intended use, including charter
Timing in the transaction
Obtain pre-approval during the search, order the lender's appraisal during the pre-buy, and align closing with loan funding through escrow.
Tax treatment varies by country; see jet buyer tax considerations.
Frequently Asked Questions
What's the smartest way to finance buying a private jet?
Compare a secured loan, a lease and a cash purchase against your tax position and holding period, and obtain lender pre-approval before making an offer.
Can a 20-year-old jet be financed?
Some specialist lenders will, but terms are tighter. Many buyers of older large-cabin aircraft pay cash.
Does financing slow down closing?
It can if arranged late. With pre-approval and the appraisal run alongside the pre-buy, financing need not extend the timeline.
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