Aircraft Trade-Up Calculator: What Your Airplane Is Worth Toward the Next One
Most trade-ups are financed with the equity in the airplane you already own. Enter what yours would sell for and what you owe, then the airplane you want next, and see your down payment, new loan and monthly payment at today’s FLYING Finance starting rates.
Run Your Trade-Up
| Sale value | |
| Selling costs | |
| Loan payoff | |
| Your equity | |
| Plus extra cash | |
| Down payment | |
| New loan amount | |
| Starting rate used |
Rates are FLYING Finance’s live starting readings from the Aircraft Loan Rate Index. Payments are principal and interest only, before taxes, insurance and fees. Your rate depends on credit, the aircraft, down payment and term.
How Equity Becomes Your Down Payment
Your equity is what is left after the sale: the sale price, minus selling costs, minus the payoff on your current loan. On most trade-ups that equity is the largest part of the down payment on the next airplane, and lenders treat it the same as cash once the sale closes.
Two things move equity more than anything else: how long you have owned the airplane and how you sell it. Early in a loan, the balance falls slowly while the airplane’s value drops fastest, which our depreciation and equity methodology walks through in detail.
Three Ways to Sell Before You Buy
What Lenders Look For on a Trade-Up
- A down payment of 15% to 20% of the new purchase price, from equity, cash or both.
- Proof of the sale or a signed purchase agreement on your current airplane before the new loan funds.
- Your payoff letter, so the old loan is cleared at or before closing.
- Pilot experience that fits the new airplane, especially when stepping up to high-performance, turboprop or jet.
Trade-Up Questions
How much down payment do I need to trade up to a new airplane?
Most aircraft lenders look for 15% to 20% down. Equity from the airplane you are selling counts toward it, and a larger down payment can improve your rate and terms.
Can I get pre-approved before my current airplane sells?
Yes. A pre-approval can be based on the equity you expect from the sale, so you can shop and make an offer with a number in hand. The new loan closes once the sale proceeds are available or the payoff is arranged at closing.
What if I owe more on my airplane than it is worth?
That is negative equity. The difference has to be covered in cash when the airplane sells, or the trade-up may need to wait. Run the numbers above and talk to us before you list so there are no surprises at closing.
Should I sell privately, use a broker, or trade to a dealer?
A broker or dealer handles marketing, the buyer and the paperwork for a fee, typically a few percent of the sale price. A private sale saves the fee but takes more of your time. Change the selling-costs setting in the calculator to compare the two.
Does trading up change my monthly payment much?
It depends on the equity you carry over, the new price, the term and today’s rate. A longer term or a larger down payment can keep the payment close to what you pay now even on a more expensive airplane.