Reaching TBO (Time Between Overhaul) is a major financial milestone for any aircraft owner. A major engine overhaul is one of the most significant expenses you will face, but it's essential for safety and preserving your aircraft's value. The high cost means many owners seek engine overhaul financing rather than paying with cash.

The Financial Challenge of an Overhaul

An engine overhaul for a single-engine piston aircraft can easily cost $25,000 to $50,000, while overhauls for turbine engines can run into the hundreds of thousands. This is a significant capital outlay that can strain any budget. Financing allows you to spread that cost over time, making it much more manageable.

Financing Options for Your Engine

1. Refinancing Your Existing Aircraft Loan

This is a very common and effective method. A "cash-out" refinance allows you to use the equity in your aircraft to fund the overhaul. You get a new loan that pays off your old one, with the remaining cash covering the cost of the engine work. This keeps your payments consolidated into a single, predictable amount.

2. A Specific Engine Overhaul Loan

If you own your aircraft outright or prefer not to alter your current loan, you can secure a separate loan specifically for the overhaul. This works much like an avionics loan, where the loan is secured by the value of the engine itself. It's a straightforward way to fund the maintenance without affecting your primary aircraft financing.

Keep Your Aircraft Flying

Don't let the cost of an overhaul ground you. We can help you access the capital you need to maintain your aircraft and protect its value.

Explore Overhaul Financing

How Lenders View Engine Financing

Lenders are very comfortable financing engine overhauls because the work directly increases the value and longevity of their collateral. A freshly overhauled engine makes an aircraft significantly more valuable than one at or near TBO. To approve the loan, they will need a detailed quote from a reputable engine shop and will want to ensure the work is done to the highest standards. By financing this critical maintenance, you not only ensure the safety of your aircraft but also make a sound investment in its future value.