Aircraft Finance Market Outlook: Buy Now, or Pay the Price Later

Trends see both opportunities and challenges for buyers and lenders.

Keller Laseter

Wednesday, March 26, 2025 at 07:00 AM ET

Verified

Edited By:

Ryan Ewing

Pilatus PC-12 [Courtesy: Pilatus Aircraft]

Key Takeaways:

The aircraft finance market in 2025 offers significantly lower interest rates (high 6% range) than the previous year, driven by broader economic trends and aggressive bank competition, making it a compelling time for buyers.
Demand for private aircraft, especially in the owner-flown segment (high-end pistons and turboprops), remains robust, fueled by upgrades and new entrants, but is met with constrained supply of newer models, leading to upward price pressure.
Potential policy changes, such as the hinted return of 100% bonus depreciation, could further stimulate demand and intensify competition, requiring buyers to act swiftly and strategically.

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As we settle into 2025, the aircraft finance market continues to evolve, presenting both opportunities and challenges for buyers and lenders alike. Costs to borrow are dropping across asset classes in the U.S. economy, stimulating demand for everything from homes to cars and aircraft.

The bottom line is that banks are competing more aggressively for borrowers’ business, which is great for aircraft buyers. This month, we’re seeing some interesting trends emerge, particularly in the owner-flown segment encompassing high-end pistons and turboprops.