How to Buy a Plane: Costs, Upkeep and More

The cost of buying an airplane varies widely, influenced by factors like aircraft type, size and age. While used single-engine planes can cost around less than $50,000, larger jets can cost millions or even tens of millions of dollars. Beyond the purchase, upkeep expenses – such as fuel, maintenance, hangar storage, and insurance – add significantly to the overall investment. Understanding these costs can help prospective buyers plan for both the upfront and ongoing expenses tied to aircraft ownership.

Do you need help planning for a major purchase, like a home, boat or aircraft? Speak to a financial advisor about it today.

How Much Does an Airplane Cost?

Airplane prices vary significantly, largely depending on the type and size of the aircraft, its intended use and specific features. For instance, small personal planes such as a new single-engine Cessna 172P cost approximately $359,000.

On the higher end, luxury private jets like a Gulfstream G650 are typically listed for between $33 million and $61 million. For comparison, commercial-grade planes, like a Boeing 737, purchased by airlines, generally range from $90 million to $140 million.

Pre-owned planes offer cost savings, often priced significantly lower than new aircraft, depending on factors like age, usage and upgrades. For example, the average price of pre-owned Piper Arrow PA28R is just $43,000, according to the Aircraft Cost Calculator, which provides owners and operators a comprehensive view of the cost of owning a plane.

Crafting the Budget for Your Plane Purchase

While making a budget would normally come first, it might be easier to see the average costs of planes before working it into your budget. Seeing what you can afford should be very close to the top of your list.

Buying a plane without knowing how much (or little) plane you can buy can cause you to fall into deep debt or put your other financial investments at risk. When you lay out how much you can afford, consider not only the cost of buying the plane new or used, but also maintenance costs, upkeep, fuel, storage, crew costs and insurance.

For example, a midsize private jet uses approximately between 200 and 290 gallons of fuel per hour, while a large private jet can consume up to 540 gallons per hour, according to Private Jet Card Comparisons. If fuel is $6 per gallon, you could expect to pay between $1,200 and $1,740 per hour in fuel costs to fly a midsize private jet.

Before you commit to being the sole owner of an aircraft, consider fractional ownership and also renting. These options are less expensive than full ownership but availability can be a problem.

Getting a Loan for Your Plane

Figure out what size loan you can service. And like buying a home, a pre-approval letter shows you’re not just looking at planes, but have an intent to buy one. You can compare lenders to see which ones offer the best financing, but make sure your credit is in tip-top shape and you qualify for the best financing terms. A pre-approval letter also tells the lender you’re serious about a quick sale and not looking for a long closing.

Some lenders specialize in aircraft loans. Many of these lenders are members of the National Aircraft Finance Association. For single-engine planes, such as the Cessna 172 pictured above, aircraft lenders will require a minimum down payment of 15% on aircraft built after 1960 and 20% for older aircraft, according to the Aircraft Owners and Pilots Association. AOPA also says loan terms range from 5 to 20 years, with 20 years only available on loans of $75,000 and above, and rates between 4.38% and 7%.

Picking a Plane to Buy

When it comes to general aviation aircraft your choices are legion. There are single-engine and twin-engine propeller aircraft as well as small jet planes. There are planes that land and take-off from the water, known as amphibious aircraft. Aircraft are available new or used. The price range for planes is vast: A new general aviation jet will cost you at least $1 million, but some used single-engine propeller planes go for under $40,000.

Even though you have an idea of what kind of plane you want to buy, you’ll need to see what’s available. Here are a few places to look:

Unless you’re paying cash for your plane, ask your financing and insurance companies if they restrict the type of plane you can buy. This might impact your search.

Going for a Test Flight

If you aren’t sure what to look for when checking out a plane to buy, consider bringing a team of experts with you, like an aircraft mechanic. See if there are any problem areas that would stop you from buying the plane, ask about accident and incident reports for the type of plane you’re considering and see if you can find the specific aircraft’s complete records.

While a test flight might be one of your last steps, it’s a good idea to make sure you’re comfortable in the aircraft before you buy it.

Preparing Your Final Purchase Offer

Once you’ve found the best plane for you, it’s time to make your offer and anticipate negotiations. Get your title and escrow finances in order and make sure you have aircraft insurance for your new purchase.

After the deal goes through, you’ll have to register the aircraft and provide proof of ownership to the Federal Aviation Administration (FAA).

Bottom Line

While the cost of planes varies by type, size, purpose and use, they’re typically a considerable purchase, even for the mega-wealthy. Before you buy a plane, get your finances in order, search through many different options and make sure you can actually become a pilot.

Tips for Buying a Plane

Consider talking to a financial advisor about whether buying an airplane makes financial sense for you. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Getting clarity on whether a private airplane makes financial sense for you depends on having a good sense of your budget. SmartAsset’s budget calculator can help you establish financial boundaries and see if there’s room for an airplane.