FLYING Finance Closes 21 Aircraft Loans in October as Year-End Buying Season Begins

FLYING Finance closed 21 aircraft loans in October. Aircraft finance specialists Kimsey Bell and Jackson Moore described the market to FLYING CFO and Group President Tripp Thurston as it heads toward year end.

Bell said the market remains strong despite an across-the-board rate increase at the start of the fourth quarter. She noted many Cirrus buyers seeking to use bonus depreciation, along with a handful of buyers in the turboprop and light jet segments.

Moore said modern aircraft with desirable avionics, priced at a depreciation sweet spot, are selling quickly, while some airworthy legacy aircraft have sat on the market for months. The fourth quarter is the busiest period for aircraft sales, and the year-end surge in transactions can lengthen closing times.

Moore said prices rose sharply in 2020 and have largely held at a plateau since, though he believes the market has softened for models not used as trainers or in commercial operations. A jittery economy and higher rates have kept some prospective buyers on the sidelines.

For buyers who want to close before Dec. 31, a FLYING Finance pre-approval typically takes one to two business days and is valid for 90 days. Loan approval, rates and terms depend on the borrower, the aircraft and lender requirements.

Bell pointed to continued availability of quality pre-owned aircraft and sustained interest in Cirrus, citing its avionics and the Cirrus Airframe Parachute System (CAPS), as well as lender acceptance of the type. She said the FAA's new MOSAIC rule opens higher-performance, more complex aircraft to sport pilots.

Moore highlighted light sport aircraft such as Tecnams, Bristells and Van's RV-12s at around five years old. He said Pipers and Mooneys can offer better value than Cessnas, whose prices are pushed up by commercial operators and first-time buyers.

Both specialists said pilots increasingly favor simpler flying, including fixed gear, FADEC, fuel injection and modern avionics. Student pilots are entering ownership earlier, experienced pilots are upgrading, and airline captains are buying aircraft for personal flying.

The split Moore describes, with modern, well-equipped aircraft moving quickly and older airworthy ones lingering, shows how a plateaued piston market behaves once rates rise. Buyers stay active, but they concentrate on aircraft that pair current avionics with a favorable depreciation position, and that pushes slower-moving types to the margins.

Year-end timing adds its own pressure. Bonus depreciation draws buyers into the fourth quarter at the same moment lenders and brokers are handling their heaviest transaction volume, so closing timelines stretch precisely when buyers most want certainty. Pre-approval windows of one to two business days and 90 days of validity become part of how a purchase is planned rather than an afterthought.

The near-term marker is how the December closings turn out against the 21 loans closed in October, and whether the softness Moore sees in non-training, non-commercial models spreads to the models now selling quickly.