Think about the moment you decide between a turboprop for efficient regional trips or a jet for speed and long-distance comfort. Both paths are exciting, but the financing behind each aircraft is not the same.
In this blog, we’ll break down a turboprop vs jet comparison, explaining how the financing differs. You’ll learn what lenders look at when structuring turboprop loans and jet aircraft loans, and why each plane type has unique financial considerations.
Understanding Turboprops and Their Financing
Turboprops are aircraft powered by propeller-driven turbine engines, combining fuel efficiency with the ability to use shorter runways. They’re often chosen for regional flights, cargo, or flexible operations. But when it comes to loans, certain details matter.
1) Aircraft Age and Usage
Turboprop loans often hinge on the aircraft’s age. Many turboprops remain in service longer than jets, but lenders weigh maintenance history closely. Frequent cargo or charter use can affect terms since it impacts wear and long-term value.
2) Loan Terms Linked to Value Retention
Turboprops generally cost less upfront, but lenders may offer shorter loan terms. That’s because resale values, while steady, don’t climb the same way as some jet models. Financing reflects this with terms that balance affordability and risk.
3) Operating Environment Considerations
Because turboprops can fly into smaller airports with rougher conditions, lenders look at where the aircraft will be based and operated. Financing often accounts for higher maintenance needs tied to these versatile missions.
Understanding Jets and Their Financing
Jets are airplanes powered by turbine engines and built for speed, altitude, and passenger comfort. They’re ideal for longer routes and corporate travel. And financing reflects their higher price and prestige.
1) Loan Amounts and Collateral
Jet aircraft loans are larger by nature, and lenders treat them as higher-value assets. Collateral requirements are stricter, and down payments may be higher due to the purchase price.
2) Longer Loan Terms
Because jets often hold resale value well, financing may extend over longer terms. Lenders are comfortable structuring loans that match the aircraft’s useful life and market demand.
3) Market and Demand Influence
Some jet models hold exceptional resale demand, and that stability can lead to better interest rates. Financing reflects market conditions more strongly with jets than turboprops, making the model you select an important factor.
Clear Loan Solutions for Turboprops and Jets with AirFleet Capital
The differences between turboprop and jet aircraft loans show how important it is to match financing with your aircraft type. Both aircraft categories offer unique strengths, and the loan structure should reflect those differences.
At AirFleet Capital, we specialize in building clear financing programs for every aircraft type. With decades of experience and tools like our online calculator, you can explore options with confidence. Explore our loan programs and see how simple financing your next aircraft can be.