Aircraft Closing Costs: An Itemized List and Who Pays, With a $250,000 Example
For buyers budgeting cash to close on a financed piston aircraft. This page lists each closing cost, a realistic range where one can be stated, who usually pays, and a worked $250,000 example.
Every aircraft closing cost, itemized
The ranges below come from the sources linked, or are marked as varying where no reliable public figure exists. Get written quotes for your aircraft.
| Cost | What to expect | Usually paid by |
|---|---|---|
| Escrow and closing agent | A few hundred dollars on most piston transactions, more for complex deals (FLYING Finance) | Often split between buyer and seller |
| Title search and report | Varies by provider; often bundled with escrow. The DIY FAA record is $10 on CD-ROM | Buyer (or charged to buyer by the lender) |
| FAA registration | $5 (14 CFR 47.17) | Buyer |
| FAA security agreement recording | $5 per collateral item (14 CFR 49.15); one item on a typical piston single | Buyer as borrower |
| Bill of sale recording | No fee when filed with the registration application | n/a |
| Seller's lien releases | No FAA fee listed in 14 CFR 49.15 | Seller clears its own liens |
| Pre-buy inspection | Depends on type and scope; more for complex singles and twins. See the pre-buy checklist | Buyer, win or lose |
| Appraisal | Only if the lender requires one; a desktop valuation costs less than an on-site appraisal. See appraisals and loan terms | Buyer |
| Lender fees | Vary: flat documentation fee, origination percentage, or none; get them in writing | Buyer |
| Interim (per-diem) interest | Only if the lender collects interest from funding to the first payment period | Buyer |
| Wire fees | Small bank charges per wire | Whoever sends the wire |
| First insurance premium | Depends heavily on aircraft and pilot. BWI (March 2026): Cessna 172, private owner with 250+ hours, $80K–$150K hull, $1,200–$2,500 a year. BWI (May 2026): experienced SR22 owner, often $3,500–$7,500 | Buyer |
| Sales or use tax | $0 to 6.25% of price in the states below; set by the state where the aircraft is bought or based | Buyer |
| Aviation attorney (optional) | Hourly or flat fee; get a quote | Whoever hires one |
| Ferry or positioning flight (optional) | Depends on distance and pilot | Negotiated |
Sample closing costs on a $250,000 aircraft purchase
Assumptions: $250,000 price, 15% down ($37,500), a $212,500 loan at 8.00% over 20 years, a piston single with one recordable collateral item, and no appraisal required. Figures marked "sample" are assumptions for illustration, not quotes.
| Buyer's cost | Amount | Basis |
|---|---|---|
| Escrow fee, buyer's half | $350 | Sample: $700 total, split |
| Title search | $250 | Sample |
| FAA registration | $5 | 14 CFR 47.17 |
| FAA security agreement recording | $5 | 14 CFR 49.15, one aircraft |
| Pre-buy inspection | $2,000 | Sample |
| Appraisal | $0 | Not required in this example |
| Lender documentation fee | $500 | Sample |
| Wire fees | $50 | Sample |
| Interim interest, 10 days | $466 | $212,500 × 8.00% ÷ 365 × 10 |
| First-year insurance premium | $3,000 | Sample; get quotes |
| Buyer closing costs before tax | $6,626 | 2.7% of price |
| Down payment | $37,500 | 15% of price |
| Cash to close before tax | $44,126 | Down payment plus costs |
The loan payment on $212,500 at 8.00% over 20 years is $1,777 a month. As of September 2026, piston rates from major aviation lenders generally start around 7% for well-qualified borrowers and run to about 10%. Model other rates and terms in the loan calculator.
Sales and use tax on the same $250,000 aircraft
Tax often dwarfs everything above. These are state-level figures on a $250,000 price; local taxes, exemptions and state aircraft registration fees can change the answer.
| State | Rule | Tax on $250,000 |
|---|---|---|
| Illinois (private sale, aircraft use tax) | 6.25% of price or fair market value, whichever is greater | $15,625 |
| Pennsylvania | 6% sales tax | $15,000 |
| Florida | 6% plus county surtax on the first $5,000 only (1% surtax shown) | $15,050 |
| Oklahoma | 3.25% aircraft excise tax in lieu of other transfer taxes | $8,125 |
| North Carolina | 4.75%, capped at $2,500 per aircraft | $2,500 |
| South Carolina | 5%, capped at $500 (the "Max Tax") | $500 |
| Rhode Island | Aircraft exempt from sales and use tax | $0 |
| Delaware, Montana, New Hampshire, Oregon | No statewide sales tax (state aircraft fees may apply) | $0 |
Sources: Illinois DOR, Pennsylvania REV-832, Florida DOR GT-800009, the Oklahoma Bar Journal (October 2024), NCDOR, SCDOR, R.I. Gen. Laws §44-18-30 and the Tax Foundation (2026). A buyer who bases the aircraft in a taxing state generally owes that state's use tax even if it was bought elsewhere. Details, exemptions and planning points are in aircraft sales tax by state. Confirm with a CPA before you rely on an exemption.
Want numbers for your specific aircraft?
Share the aircraft and timeline — a financing specialist will come back with rate, term and down-payment options.
How aircraft closing costs scale with purchase price
Most non-tax costs barely move with price, so they matter more on a cheaper aircraft. Percentage-based taxes grow in step with the price, while capped taxes stop growing. The table keeps the sample fees above constant and recomputes only the interim interest and the tax. In reality, insurance and inspection costs also rise with hull value and complexity.
| Price | Sample non-tax buyer costs | As % of price | Illinois use tax (6.25%) | North Carolina (4.75%, $2,500 cap) |
|---|---|---|---|---|
| $100,000 | $6,346 | 6.3% | $6,250 | $2,500 |
| $250,000 | $6,626 | 2.7% | $15,625 | $2,500 |
| $500,000 | $7,092 | 1.4% | $31,250 | $2,500 |
The pattern holds regardless of the samples. On a trainer-class aircraft, fees and first-year insurance can be a noticeable share of the price. On a high-performance single, where the aircraft is based decides most of the cost.
Which costs disappear if you pay cash?
A cash buyer skips the lender documentation fee, the $5 security-agreement recording, interim interest and usually one wire. A cash buyer still needs the escrow agent, the title search, the $5 registration, the pre-buy and, realistically, hull insurance, since nothing else protects the asset. Using the same samples, a cash buyer's pre-tax costs would be about $5,630 versus $6,626 financed. The difference is small next to the down payment, which is why the cash-versus-loan decision usually turns on rates, liquidity and tax, not closing costs. See aircraft loan vs. cash purchase.
What the seller typically pays
- Payoff of its existing loan, plus per-diem interest to the payoff date.
- Any cost of clearing title: releases of old liens, corrective documents, legal work.
- Its share of the escrow fee, if split.
- Its own broker's commission, if it listed the aircraft.
- Repairs or credits it agreed to after your pre-buy.
How to keep aircraft closing costs down
- Get lender fees in writing with the rate quote. A lower rate with a larger fee can cost more over the time you actually hold the loan.
- Ask what the escrow fee includes. Title search, document prep, filing and wires are sometimes bundled and sometimes billed separately.
- Shop insurance before the offer. Premiums vary widely by type and pilot experience, and some aircraft need transition training before an insurer will bind.
- Understand your state's tax before choosing where to close and base. Never plan a sale around tax without a CPA. Use tax generally follows the aircraft home.
- Don't cut the pre-buy. It is the one cost that routinely pays for itself, either in a price reduction or in a deal you avoided.
How this guide differs from related guides
This page covers what closing costs and who pays. For the day-by-day schedule, see the aircraft closing process. For how an escrow agent moves the money, with a sources-and-uses example, see aircraft escrow and title agents. For the registration forms behind the $5 fee, see the FAA registration guide. For the down-payment side of cash to close, see down payment strategies.
Frequently asked questions
How much are closing costs when you buy an aircraft?
Leaving out sales tax, the buyer's costs on a financed piston purchase are usually a few thousand dollars. In our $250,000 sample, they total about $6,626: escrow, title search, $10 in FAA fees, pre-buy, a lender fee, wires, interim interest and a first-year insurance premium. Sales or use tax is often the largest single item, from $0 to more than $15,625 on the same aircraft depending on the state.
Who pays aircraft closing costs, the buyer or the seller?
It is negotiated in the purchase agreement, but common practice is this. The buyer pays for its own inspection, title search, registration, loan costs, insurance and sales tax. The seller pays off and releases its liens and fixes title defects. The escrow fee is often split. The seller also pays any commission to its own broker. Put the allocation in writing before anyone orders anything.
What does the FAA charge at closing?
Very little. Registering the aircraft in your name costs $5 (14 CFR 47.17), and recording the lender's security agreement costs $5 per collateral item (14 CFR 49.15). For a typical piston single that is one item, because piston engines are below the 550-horsepower threshold for separate recording. The bill of sale filed with your application is recorded at no extra charge.
Can closing costs be rolled into an aircraft loan?
Usually not in full. Aviation lenders size the loan to the aircraft's value and require a minimum down payment, commonly 15% for post-1960 singles and 20% for pre-1960 aircraft, per AOPA. That leaves inspection, insurance, fees and tax as cash items. Some lenders are flexible on small fees, so ask. Budget closing costs as cash on top of your down payment.
Do aircraft lenders charge origination fees or points?
Practices vary. Some aviation lenders charge a flat documentation or processing fee, others an origination fee expressed as a percentage of the loan, and some build their costs into the rate. Ask for every lender fee in writing with the rate quote, and compare offers on total cost, not rate alone. A financing specialist can line up quotes from several lenders side by side.
Is a pre-buy inspection a closing cost?
It is a pre-closing cost the buyer almost always pays, whether or not the deal closes, so budget for it even on an aircraft you might walk away from. The cost depends on the type, the shop and the scope, and a complex single or twin costs more than a simple trainer. Repairs of airworthiness items it finds are negotiated with the seller.
General information, not tax or legal advice. Sample figures are illustrative assumptions, not quotes. Confirm tax treatment with a CPA, and get written fee quotes from your lender, escrow agent and inspector.