Beyond the down payment, an aircraft purchase and loan come with closing costs you should budget for. They're generally modest relative to the aircraft's value, but knowing what to expect prevents surprises at closing. Here's what typically goes into aircraft loan closing costs.
Key takeaways
- Lender and documentation fees cover originating and filing the loan.
- Escrow and title handle the transaction and verify clear title.
- FAA registration and lien filing record the sale and the lender's interest.
- Pre-buy inspection and appraisal are separate but essential costs.
Typical Closing Costs
- Loan documentation / origination fees: lender fees to process and originate the loan.
- Escrow and title services: the escrow company holds funds, verifies clear title, and handles closing.
- FAA registration and lien filing: recording the aircraft's transfer and the lender's security interest with the FAA Registry.
- Appraisal: confirming the aircraft's market value (often lender-required).
- State sales/use tax: not a closing fee per se, but a major cost in many states — see our aircraft sales-tax guidance.
The pre-buy inspection is usually the largest transaction cost and is covered separately below.
The Pre-Buy Inspection
A pre-buy inspection is typically the biggest single transaction cost outside the aircraft and taxes, and lenders generally require one on a used aircraft before funding. Cost varies widely by aircraft class — from four figures on a piston single to substantially more on a turbine or jet. It's not a fee you should try to avoid: it's the best protection against an expensive post-purchase surprise, and it protects the lender's collateral too.
How to Budget for Closing
As a rule of thumb, budget for the down payment plus a modest allowance for loan, escrow, title, and FAA fees, plus the pre-buy inspection and appraisal, plus any applicable state sales or use tax. On many transactions the fees (excluding taxes and the inspection) are a small fraction of the aircraft's value, but taxes and the inspection can be significant. Ask your broker and escrow company for an itemized estimate early so there are no surprises at the closing table.
Rates, terms, and figures in this article are illustrative examples for the 2026 market and are not offers of credit. Jaken Aviation is a licensed aircraft financing brokerage — a division of Jaken Finance Group — and does not make loan decisions. All financing is subject to lender approval. Tax information is general and not a substitute for advice from a qualified CPA.
Frequently Asked Questions
What are typical closing costs on an aircraft loan?
Lender/documentation fees, escrow and title services, FAA registration and lien filing, and an appraisal. The pre-buy inspection and any state sales/use tax are separate and can be the largest items.
Is the pre-buy inspection a closing cost?
It's a transaction cost that lenders generally require before funding a used aircraft. It's usually the largest single cost outside the aircraft and taxes, and it protects both you and the lender.
Do I pay sales tax at closing?
State sales or use tax may apply depending on where the aircraft is based and registered. It's not a loan fee, but it can be a major cost — plan for it with your CPA.
How much should I budget beyond the down payment?
Budget the loan/escrow/title/FAA fees, the pre-buy inspection and appraisal, and any applicable state tax. Ask for an itemized estimate early.
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