Beechcraft King Air 200/250 Aircraft Financing

Finance Your Beechcraft King Air 200/250

The Beechcraft King Air 200/250 is a versatile turboprop twin that combines performance, capability, and value. Whether you're upgrading your aircraft or making your first purchase, we provide specialized Beechcraft King Air 200/250 financing solutions with competitive rates and flexible terms tailored to your needs.

Beechcraft King Air 200/250 Specifications & Performance

Specification	Details
Category	Turboprop Twin-Engine
Price Range	$2,500,000 - $6,500,000
Typical Used Price	$4,500,000
Engine	Twin Pratt & Whitney PT6A-42 (850 shp each)
Cruise Speed	310 knots
Range	1,720 nm
Seats	8-10
Useful Load	5,200 lbs
Service Ceiling	35,000 ft

Why Finance a Beechcraft King Air 200/250?

• Spacious Cabin - 54" wide cabin seats 8-10 passengers
• Strong Performance - 310-knot cruise with 1,720 nm range
• PT6A Power - 850 shp per engine for excellent climb
• Known Ice Certified - All-weather capability standard
• Cargo Capability - Popular for Part 135 operations

Beechcraft King Air 200/250 Financing Options

Competitive Interest Rates

• New Beechcraft King Air 200/250: Starting at 5.5% APR
• Late-model used (2010+): Rates from 5.75% APR
• Older models: Rates from 6.5% APR
• Terms up to 20 years available for qualified buyers

Flexible Down Payment Options

• As low as 15% down for qualified buyers
• Higher down payments may qualify for better rates
• Trade-in equity can be applied to down payment
• Refinance options available for existing owners

Beechcraft King Air 200/250 Ownership Economics

The King Air 200 and 250 series represent the workhorse of the King Air family, offering superior cabin space and performance compared to the C90 series. These aircraft dominate corporate and Part 135 operations worldwide, with operating economics that balance capability against costs.

Direct operating costs range from $1,200-1,600 per flight hour depending on configuration and usage. The twin PT6A-42 engines (850 shp each) burn approximately 90-110 gallons per hour combined at cruise, translating to $360-495 in fuel costs at $4.00-4.50 per gallon Jet-A. Engine reserves constitute the major cost driver - PT6A-42 hot section inspections every 2,000 hours run $85,000-110,000 per engine, contributing approximately $85-110 per hour to reserves. Full overhauls at 4,000 hours cost $300,000-375,000 per engine.

Annual fixed costs include insurance ($18,000-45,000 for experienced crews), hangar rental ($10,000-40,000 annually depending on location), and scheduled maintenance. Progressive inspections follow the same Phase 1-5 cycle as C90 models but with higher costs: Phase 1 ($20,000-35,000), Phase 2 ($35,000-55,000), Phase 3 ($60,000-95,000), Phase 4 ($110,000-165,000), and Phase 5 ($165,000-240,000). Annual database subscriptions and chart updates run $5,000-8,000.

Financing Example: For a $4,500,000 King Air 250 with 15% down ($675,000), financing $3,825,000 at 5.75% APR over 15 years results in monthly payments of approximately $31,500. Over the loan term, you'll pay roughly $1,845,000 in interest. Combined with DOC of $1,400/hour at 200 hours annually, your first-year total ownership cost approaches $650,000-750,000 including all fixed and variable expenses.

Beechcraft King Air 200/250 Maintenance & Service Intervals

King Air 200/250 maintenance follows Beechcraft's comprehensive progressive inspection program designed specifically for high-utilization operations including Part 135 charter and cargo.

The five-phase inspection cycle spreads maintenance evenly across operating hours. Phase 1 (300 hours) includes basic systems checks and costs $20,000-35,000. Phase 2 (600 hours) expands to include more detailed inspections at $35,000-55,000. Phase 3 (1,200 hours) is comprehensive, covering landing gear, flight controls, and systems at $60,000-95,000. Phase 4 (2,400 hours) represents a major event with landing gear overhaul and complete systems evaluation at $110,000-165,000. Phase 5 (3,600 hours) is the most extensive, requiring $165,000-240,000 and potentially revealing age-related issues requiring additional work.

PT6A-42 engines are legendary for reliability but require strict adherence to maintenance schedules. Hot section inspections at 2,000 hours cost $85,000-110,000 per engine, making simultaneous dual HSIs a $170,000-220,000 event. Many operators stagger engine maintenance by 500-1,000 hours to avoid simultaneous major expenses. Complete overhauls at 4,000 hours run $300,000-375,000 per engine. Between major events, oil changes every 100-150 hours cost $800-1,200, and compressor washes every 300 hours help maintain performance.

The larger cabin requires more complex environmental systems. Air conditioning servicing runs $4,000-8,000 annually, with compressor replacements every 1,500-2,500 hours at $12,000-18,000. Pressurization outflow valves need overhaul every 2,000 hours ($8,000-12,000). Landing gear systems are robust but expensive - brake replacements every 400-600 hours cost $4,000-6,000, and complete gear overhauls at Phase 4 intervals run $40,000-60,000.

Many King Air 200/250 operators participate in engine and airframe programs like Pratt & Whitney's ESP (Engine Service Program) or Corporate Care, paying fixed hourly rates ($200-350/hour) for complete engine coverage including HSI and overhaul. These programs provide budget certainty but require long-term enrollment commitments and minimum annual utilization.

Beechcraft King Air 200/250 Financing Rates & Terms

King Air 200/250 financing benefits from exceptional market depth and strong commercial operator demand, creating favorable lending conditions.

Current rates for late-model King Air 250 aircraft (2010-2025) range from 5.50-6.25% APR for qualified borrowers. Mid-time King Air 200 and B200 models (2000-2010) typically see 5.75-6.75% APR. Older B200 and 200 variants (1990-2000) command 6.50-7.50% APR, with vintage aircraft potentially higher. Commercial operators with demonstrated cash flow may secure better terms than private owners.

Sample Financing Scenario: A $5,000,000 King Air 250 with 15% down ($750,000) financed at 6.00% APR over 15 years yields monthly payments of $35,850. A 20-year term reduces payments to $30,350 monthly but increases total interest from $1,703,000 to $2,534,000 - an extra $831,000. Shorter 12-year terms at 5.75% APR create $42,300 monthly payments but save significantly on total interest paid.

Term structures vary by use case. Part 91 corporate operators typically secure 15-20 year terms on newer aircraft. Part 135 charter operators may face 10-15 year maximums due to higher utilization and wear concerns. Cargo operators sometimes face even shorter terms (7-10 years) despite strong revenue, as cargo operations involve higher stress and wear.

Down payment requirements range from 15-20% for strong credits with turbine experience, up to 25-30% for less experienced operators or marginal credit. Part 135 operators usually face 20-30% down payment requirements regardless of credit strength. Rate buydowns are possible - paying 1-2 points upfront can reduce rates by 0.50-0.75%, potentially saving tens of thousands over the loan term.

Beechcraft King Air 200/250 Ownership Alternatives

The King Air 200/250's operating costs and complexity make it well-suited for commercial operations and creative ownership structures.

Part 135 leaseback arrangements are extremely common with King Air 200/250 aircraft. Operators like Air Choice One, Tradewind Aviation, and regional cargo operators actively seek aircraft for charter and scheduled service. These arrangements typically provide $15,000-35,000 monthly guaranteed minimums plus percentage overrides on revenue above thresholds. Carefully evaluate operator financial strength, maintenance standards, and contract terms before committing. Some leaseback agreements include option-to-purchase clauses allowing operators to acquire the aircraft after 3-5 years.

Fractional arrangements work well for 2-3 partner operations where each party needs 75-150 hours annually. A three-way split reduces individual acquisition to roughly $1,500,000 per partner while distributing fixed costs. Professional management becomes essential with multiple partners - companies like Solairus or Clay Lacy provide turnkey management for $5,000-10,000 monthly plus hourly rates covering maintenance, crew, and operations.

Dry lease programs allow corporate flight departments to lease aircraft from individual owners, generating $20,000-35,000 monthly revenue while maintaining access for owner use. These arrangements work particularly well for owners needing only 50-75 hours annually but wanting availability and control. King Air charter rates run $2,800-4,200 per flight hour, making ownership economically viable above 125-175 annual hours depending on fixed cost allocation.

Beechcraft King Air 200/250 Red Flags & Lender Concerns

Lenders evaluate King Air 200/250 aircraft carefully for specific issues common to high-utilization turboprops.

Engine status dominates financeability. Aircraft with both engines approaching hot section intervals (within 300 hours) or with significant time disparities between engines create complications. Lenders often require HSI escrows or completion before closing. Engine oil consumption trends matter - engines consuming more than 1 quart per 10 hours signal potential issues requiring investigation. Always review engine log books for trends, repetitive issues, and compliance with Pratt & Whitney service bulletins.

Cargo conversion and Part 135 operation history require disclosure. Aircraft with cargo door installations or reinforced flooring may have reduced market appeal and lower residual values. Heavy cargo operations cause increased airframe stress and corrosion potential. Pre-purchase inspections for ex-cargo aircraft should include detailed corrosion inspection, especially in the aft fuselage and cargo area. Some lenders apply 10-20% valuation discounts for ex-cargo aircraft.

Pilot qualifications critically affect insurance and financeability. Insurance companies require 750-1,500 total hours, 200-500 multi-engine hours, and type-specific training for reasonable premiums. First-time King Air 200/250 pilots face annual insurance costs of $30,000-50,000 versus $18,000-30,000 for experienced pilots. Many operators hire professional pilots ($80,000-120,000 annually) rather than owner-pilots, particularly for Part 135 operations requiring ATP certificates and higher minimums.

Frequently Asked Questions - Beechcraft King Air 200/250 Financing

What credit score do I need to finance a Beechcraft King Air 200/250?

Lenders typically require a minimum credit score of 680-700 for Beechcraft King Air 200/250 financing. Borrowers with scores above 720 receive the best rates. The Beechcraft King Air 200/250's strong market demand helps secure favorable financing terms for qualified borrowers.

How much down payment is required for a Beechcraft King Air 200/250?

Down payments typically range from 15% depending on aircraft age, condition, and buyer qualifications. Well-maintained aircraft with modern avionics may qualify for lower down payments. Your credit profile and experience also influence requirements.

What loan terms are available for Beechcraft King Air 200/250 financing?

Typical loan terms range from 15-20 years for newer models and 12-15 years for older aircraft. Amortization can extend to 20 years with flexible balloon payment structures. Your final term depends on aircraft age, value, and your financial profile.

Can I finance a Beechcraft King Air 200/250 for business use?

Absolutely. The Beechcraft King Air 200/250 is commonly used for business travel, and business use provides significant tax advantages including Section 179 depreciation, bonus depreciation, and operating expense deductions. Consult your tax advisor for specific benefits applicable to your situation.

What insurance is required for a financed Beechcraft King Air 200/250?

Lenders require liability coverage (minimum $2M) and hull insurance covering the full loan amount. Annual premiums range from $5,000-15,000 depending on pilot experience, hull value, and aircraft type. Multi-engine and pressurized aircraft require higher minimum pilot qualifications.

How quickly can I get approved for Beechcraft King Air 200/250 financing?

Pre-qualification typically takes 24-48 hours with basic information. Full underwriting requires 7-14 business days with complete documentation including tax returns, financial statements, and aircraft details. Closing can occur within 3-4 weeks of application, sometimes faster for experienced borrowers with clean credit.

What pilot qualifications do lenders require for Beechcraft King Air 200/250 financing?

Lenders typically require a multi-engine rating and prefer pilots with at least 500 hours total time, including 50-100 hours multi-engine experience. Insurance companies may have stricter requirements than lenders, particularly for high-performance twins.

Can I include avionics upgrades in my Beechcraft King Air 200/250 financing?

Yes, avionics upgrades like Garmin G500/G600/G3X installations can often be rolled into your purchase loan or accomplished through a refinance. Modern glass cockpits typically add value exceeding their cost, making them attractive to both lenders and buyers. Lenders prefer certified installations with proper documentation.

What happens if I want to upgrade to a different aircraft later?

You can sell your Beechcraft King Air 200/250 at any time and use equity toward your next aircraft. Well-maintained aircraft typically build equity over time, especially if you maintain it well and make strategic improvements. Some lenders offer streamlined refinancing or trade-up programs.

Related Articles & Resources

• Complete Beginner's Guide to Buying a Beechcraft King Air 200/250 - Specifications, pricing, and ownership costs
• Aircraft Financing Options Guide - Compare loan programs and lenders
• Cessna 182 Financing - Popular single-engine financing
• Aircraft Insurance and Financing - Understanding insurance requirements
• Aircraft Financing for First-Time Buyers - Step-by-step guide