Cessna 402 Cost of Ownership: Cabin-Class Twin Budget, Part 135 History and Financing
The Cessna 402 is an unpressurized, cabin-class piston twin with turbocharged Continental engines, built from 1966 to 1985 for small commuter airlines, cargo haulers and charter operators. This page is the annual budget for an owner flying one privately, plus what its commercial history means for price, maintenance and financing.
Which Cessna 402 models are there?
| Model | Years | Engines | Budget note |
|---|---|---|---|
| 402 | 1966–1969 | Turbocharged Continental, 300 hp each | Pre-1970 twins fall outside some lenders' preferred age range |
| 402A | 1969–1972 | Turbocharged Continental, 300 hp each | Check year of manufacture against lender guidelines |
| 402B | 1970–1978 | Turbocharged Continental, 300 hp each | Common in commuter and cargo fleets |
| 402C | 1979–1985 | Continental TSIO-520-VB, 325 hp each | Most sought-after; the type Cape Air flew in large numbers |
Years, engines and seating (6–10 seats, unpressurized) per the Cessna 402 production history, which lists Cape Air as the largest operator with 64 aircraft as of March 2024. Cessna marketed the 402 in both utility/commuter and executive cabin configurations, so check the interior and seating on any airplane you look at.
How much does a Cessna 402 cost per year?
The worked example is a 402C bought for $300,000, with 25% down ($75,000) and $225,000 financed at 7.75% over 15 years, flown privately under Part 91. Every cost figure is a labeled assumption, including the price. 402 asking prices in 2025–2026 listings vary very widely with engine times, airframe hours, commercial history, avionics and interior. Verify any specific airplane with Vref or Aircraft Bluebook and get a twin-experienced appraiser if the lender requires one.
| Cost line | 50 h/yr | 100 h/yr | 200 h/yr |
|---|---|---|---|
| Twin hangar (assumption: $1,000/mo) | $12,000 | $12,000 | $12,000 |
| Insurance, private Part 91, experienced multi pilot (assumption) | $9,000 | $9,000 | $9,000 |
| Annual inspection (assumption) | $12,000 | $12,000 | $12,000 |
| Recurrent training, often an insurer requirement (assumption) | $4,500 | $4,500 | $4,500 |
| Databases, subscriptions, supplies, misc. (assumption) | $3,000 | $3,000 | $3,000 |
| Fuel: 34 gph total × $7.24/gal 100LL ($246.16/h) | $12,308 | $24,616 | $49,232 |
| Oil, both engines (assumption) ($10.00/h) | $500 | $1,000 | $2,000 |
| Engine reserves: 2 × $75,000 ÷ 1,600 h ($93.75/h) | $4,688 | $9,375 | $18,750 |
| Airframe, props, turbos, avionics, unscheduled (assumption) ($85.00/h) | $4,250 | $8,500 | $17,000 |
| Operating cost before financing | $62,246 | $83,991 | $127,482 |
| Per flight hour, before financing | $1,245 | $840 | $637 |
| Loan payments ($2,118/mo × 12) | $25,414 | $25,414 | $25,414 |
| Total with loan | $87,660 | $109,405 | $152,896 |
| Per flight hour, with loan | $1,753 | $1,094 | $764 |
Fixed costs of $40,500 a year make low utilization expensive: at 50 hours they add $810 to every hour. The 402 was designed to earn its keep flying many hours a year, and it's most economical when it does.
Why does a twin cost more than two singles' worth of engines?
Almost every engine-related line doubles: fuel, oil, two turbocharger systems, two propellers and two overhauls. The engines also tend to reach TBO at about the same time, so the overhaul is a single large event rather than two spread out. Continental's TBO letter (SIL98-9) lists roughly 1,400 to 1,800 hours across TSIO-520 variants depending on dash number and serial number, with a 12-year calendar recommendation. This budget uses a 1,600-hour planning basis. Confirm the figure for both engines.
- Paired overhaul: at $75,000 per engine all-in (an assumption covering turbo, accessories and removal and reinstallation), both engines cost about $150,000.
- Buying mid-time engines: two engines at 1,200 hours since overhaul on a 1,600-hour basis have used about $112,500 of that $150,000. The price should reflect it, and the lender will ask how you plan to fund the overhaul.
- Propellers: two three-blade constant-speed propellers mean two overhauls on hours or calendar time, and two sets of de-ice components if equipped.
- Training: engine-out proficiency is a recurring cost of flying a twin safely, and insurers usually require it.
Background: SMOH and TBO explained and the financial side of engine overhauls.
What does Part 135 history mean for a 402?
Many 402s spent years flying scheduled commuter routes, cargo and charter. That history cuts both ways, and it shows up in price, maintenance and financing:
| Commercial history | What it means for the owner |
|---|---|
| High airframe hours and cycles | Short commuter legs pile up landings and flight cycles, which drive fatigue-related inspections. Some lenders cap airframe time; AOPA has noted its lenders restrict it to under 10,000 hours. |
| Detailed maintenance records | Commercial operators document inspections thoroughly, which helps a pre-buy. Make sure the full history transfers with the airplane. |
| Leaving the operator's inspection program | Expect a thorough inspection to move the airplane onto a Part 91 inspection basis, and budget for what it finds. Your mechanic will confirm what's required. |
| Corrosion | Coastal and island operations are common for 402s. Corrosion is often the biggest unknown and the main reason to pay for a deep pre-buy. |
| Cessna Supplemental Inspection Documents (SIDs) | Cessna published SIDs for its aging twins. Whether compliance is required depends on the operation, but buyers, insurers and lenders increasingly ask about it. |
| Interior and avionics | Commuter interiors and older fleet avionics may need refurbishing for private use. Price that in. |
Putting it back into commercial service? If you plan to lease the 402 to a Part 135 operator or run your own certificate, tell the lender and insurer first. Commercial use changes both underwriting and coverage, and it changes taxes too: aircraft used in common or contract carriage fall in the 7-year MACRS class rather than the 5-year class for Part 91 business use (NBAA). Confirm with a CPA, and see business aircraft tax advantages.
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How do you finance a cabin-class twin like the 402?
Twin financing is more conservative than single-engine financing. AOPA Aviation Finance lists maximum terms of 10–15 years for multi-engine aircraft, down payments of 15% to 30% depending on age, and a general preference for multi-engine aircraft manufactured in 1970 or later, with possible exceptions. As of September 2026, piston loan rates quoted by major aviation lenders generally start around 7% and run to roughly 10%. Older twins and smaller lender pools often price toward the upper half.
| Term | 7.50% APR | 8.25% APR | 9.00% APR | 10.00% APR |
|---|---|---|---|---|
| 10 years (120 mo) | $2,671/mo $95,495 interest | $2,760/mo $106,162 interest | $2,850/mo $117,025 interest | $2,973/mo $131,807 interest |
| 12 years (144 mo) | $2,374/mo $116,893 interest | $2,466/mo $130,171 interest | $2,561/mo $143,722 interest | $2,689/mo $162,205 interest |
| 15 years (180 mo) | $2,086/mo $150,440 interest | $2,183/mo $167,907 interest | $2,282/mo $185,778 interest | $2,418/mo $210,215 interest |
Loan amount $225,000. Principal and interest only; excludes insurance, taxes and fees. Illustrative, not a quote.
| Down payment | Cash at closing | Loan | 10-year payment | 15-year payment |
|---|---|---|---|---|
| 15% | $45,000 | $255,000 | $3,060/mo | $2,400/mo |
| 20% | $60,000 | $240,000 | $2,880/mo | $2,259/mo |
| 25% | $75,000 | $225,000 | $2,700/mo | $2,118/mo |
| 30% | $90,000 | $210,000 | $2,520/mo | $1,977/mo |
The 15-year term keeps the payment manageable, but it costs $156,217 in interest on the $225,000 example, against $99,029 over 10 years. Many twin buyers take the longer term and prepay when cash allows (check the note for prepayment terms). Expect the lender to look at:
- Credit and liquidity: 680+ is the usual floor and 720–730+ gets the best pricing. Liquidity after closing matters more on a twin, because a paired overhaul is a six-figure event.
- Pilot qualifications and insurance: the lender needs hull coverage naming it as loss payee, and underwriters won't write that without appropriate multi-engine experience.
- Year, airframe time and records: pre-1970 402s and very high-time ex-commuter airframes narrow the lender pool.
- Cape Town: 402s built with up to 10 seats may meet the Convention's threshold of eight persons including crew. If so, an International Registry filing is part of closing. Your escrow or title company will confirm.
More detail: aircraft loan requirements, down payment strategies, balloon payment financing and how age and condition affect financing.
How much is insurance on a 402?
Our $9,000 figure is a labeled assumption for private Part 91 use by an experienced multi-engine pilot with time in type and a hull near $300,000. BWI's published 2026 figures cover singles, not cabin-class twins, so get a broker quote early. Underwriters typically weigh total multi-engine time, time in the 402 or similar cabin-class Cessnas, instrument currency and recent training. Many require an initial course and annual recurrent training, which is why the budget carries a $4,500 training line. Commercial coverage for Part 135 operations is a separate, much more expensive product. See insurance on financed aircraft.
How does the 402 compare with other Cessna twins?
The 402 fits between the six-seat Cessna 310 and the pressurized Cessna 340 and 414A Chancellor. It carries more people and cargo than a 310 and skips the maintenance cost of pressurization, but it flies lower and in more weather than the pressurized 400-series. Model pages: 310, 340, 414 Chancellor and 421 Golden Eagle.
How this page differs from related guides
This page is the annual budget and financing picture for a privately operated Cessna 402. For the general framework, see operating cost breakdown and building a realistic aircraft budget. For inspection strategy on an older airframe, read pre-purchase inspection for older aircraft. For terms, see the aircraft financing glossary.
Frequently asked questions
How much does it cost to own a Cessna 402 per year?
Under this page's assumptions, a privately operated 402C flown 100 hours a year costs about $83,991 to operate ($840 per hour) before financing. A $225,000 loan at 7.75% over 15 years adds $2,118 a month, for about $109,405 a year. Two engines double most engine-related lines.
What engines does the Cessna 402 use?
All 402s use turbocharged Continental six-cylinder engines. The 1966–1978 402, 402A and 402B have 300 hp engines, and the 1979–1985 402C uses 325 hp TSIO-520-VB engines. Continental’s SIL98-9 lists TSIO-520 TBOs of roughly 1,400 to 1,800 hours depending on dash number and serial number, so confirm the figure for both engines.
Is a former Part 135 Cessna 402 a bad buy?
Not necessarily. Many 402s flew for commuter and cargo operators, which usually means high hours and cycles but also detailed maintenance records. The questions are corrosion, damage history, airframe time, and what the airplane needs when it leaves the operator’s inspection program. Some lenders limit airframe time, so check financeability before you negotiate.
What loan terms are available for a Cessna 402?
AOPA Aviation Finance lists maximum terms of 10–15 years for multi-engine aircraft and down payments of 15% to 30% depending on age, and notes its lenders generally want multi-engine aircraft manufactured in 1970 or later, with possible exceptions. As of September 2026, quoted piston rates generally run from about 7% to 10%.
Does the Cape Town Convention apply to a Cessna 402?
Possibly. Cape Town covers airframes type-certificated for at least eight persons including crew, and 402s were built with up to 10 seats. If your airplane meets the threshold, an International Registry filing is part of closing, in addition to the FAA registration and lien recording. Your escrow or title company will confirm.
How much is insurance on a Cessna 402?
For private Part 91 use, our budget assumes about $9,000 a year for an experienced multi-engine pilot with time in type. That is an assumption, not a quote. Underwriters look closely at multi-engine and cabin-class experience and usually require initial and recurrent training. Commercial Part 135 coverage is a different and much more expensive policy.