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 favorable conditions for buyers due to dropping borrowing costs, with interest rates for aircraft loans now in the high 6 percent range, reflecting increased competition among lenders.
The owner-flown segment, particularly high-end pistons and turboprops, is experiencing robust demand driven by first-time buyers upgrading from older models, yet limited availability of newer aircraft is driving prices upward.
Potential buyers should act strategically and swiftly, as the anticipated restoration of 100 percent bonus depreciation could further stimulate demand, exacerbating competition and potentially increasing costs for sought-after models.

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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.