Cessna 172 Aircraft Financing

Most aviation lenders require a minimum credit score of 650-700 for Cessna 172 financing, with preferred scores of 720 or higher for the best rates. Higher credit scores (740+) can qualify you for rates as low as 6.5% APR on new 172S models. Borrowers with scores in the 650-699 range may still qualify but should expect higher interest rates (7.5-9.0% APR) and potentially larger down payment requirements (20-25%).

Down payment requirements vary based on the aircraft's age and your credit profile. For new Cessna 172S models, qualified buyers can finance up to 90% (10% down). For used aircraft, expect 15-20% down for models less than 20 years old, and 20-25% down for older aircraft. Flight schools and commercial operators may face higher down payment requirements (20-30%) depending on their business financials.

Current Cessna 172 financing rates range from 6.5% to 9.5% APR depending on creditworthiness, down payment, and aircraft age. New 172S models with 20% down and excellent credit (740+) can secure rates around 6.5-7.0%. Used aircraft (10-20 years old) typically see rates of 7.5-8.5%, while older models (20+ years) may face rates of 8.5-9.5%. Variable rate options may start 0.5-1.0% lower but carry adjustment risk.

Yes, but lenders treat training and leaseback aircraft differently than personal-use aircraft. You'll need to demonstrate the business viability through projected revenue, existing leaseback agreements, or flight school contracts. Most lenders require higher down payments (20-30%) for commercial training use and may require additional insurance coverage. The aircraft's expected utilization hours and maintenance reserves are key underwriting factors.

Cessna 172 loans typically offer terms of 10-20 years with various amortization schedules. Common structures include: 15-year term with 15-year amortization (fully amortizing), 10-year term with 20-year amortization (balloon payment), or 20-year term with 20-year amortization. Longer terms reduce monthly payments but increase total interest paid. Most lenders allow prepayment without penalties, giving you flexibility to pay off the loan early.

Aircraft age significantly impacts loan terms. New to 10 years old: Best rates, up to 90% LTV, 20-year terms. 10-20 years old: Competitive rates, 80-85% LTV, 15-20 year terms. 20-30 years old: Higher rates, 75-80% LTV, 10-15 year terms. 30+ years: Limited lenders, 70-75% LTV, typically 10 year maximum terms. Well-maintained vintage 172s with complete logbooks and recent upgrades receive more favorable consideration than poorly documented aircraft.

Personal documentation: 2-3 years of tax returns, bank statements (2-3 months), personal financial statement, pilot certificate and logbook. Aircraft documentation: Purchase agreement, detailed spec sheet with avionics list, aircraft registration, current photos. Pre-approval phase: Recent credit report, employment verification, assets/liabilities summary. Closing phase: Pre-buy inspection report, insurance quote or binder, FAA aircraft title search, appraisal (if required).

Yes, most lenders allow you to include planned upgrades in the loan amount, typically up to 10-15% of the aircraft's purchase price. Common financed upgrades include ADS-B Out compliance, panel-mounted GPS (Garmin 650/750), autopilot installation, or engine monitor systems. The upgrades must be completed within 90-180 days of closing, and you'll need quotes from approved avionics shops. Some lenders hold funds in escrow and release them upon completion with proper invoicing.

Monthly payments vary based on purchase price, down payment, rate, and term. Example 1: $200,000 used 172 with $40,000 down (20%), 7.5% APR, 15 years = approximately $1,485/month. Example 2: $430,000 new 172S with $43,000 down (10%), 6.5% APR, 20 years = approximately $2,885/month. Example 3: $150,000 older 172 with $37,500 down (25%), 8.5% APR, 12 years = approximately $1,210/month. Use our aircraft loan calculator for personalized estimates.

The typical timeline is 2-4 weeks from application to closing. Pre-qualification: 1-3 business days with basic financial information. Full application: 5-7 business days once purchase agreement is signed and all documents submitted. Underwriting and approval: 3-5 business days for decision. Pre-buy inspection: 1-2 weeks to schedule and complete. Closing: 3-5 business days after approval and inspection. Delays often occur due to incomplete documentation, scheduling conflicts for inspections, or title issues.