Beyond the upfront cost of buying a private jet, there are many other considerations to make, such as how the asset will be managed and how owners might handle the financial and tax ramifications of ownership. Before buying a pre-owned private jet, below are some basic questions that will help rule out aircraft that do not meet your needs.
Now let’s dive into more detailed aspects to be considered when buying a pre-owned private jet. In general, major maintenance and inspection costs are relegated further into the future, so those looking for pre-owned aircraft should consider this when financing.
Verify the total time on the airframe, total time on the engines, and the amount of time passed since a major overhaul. If any major overhaul to the aircraft has occurred, you need to know the details surrounding what was done.
After purchase, the ongoing expenses of managing the aircraft will be one of the primary considerations when choosing the right aircraft to purchase. As a rule of thumb, aircraft owners can expect to pay $500,000 to $1 million annually for maintenance and operating costs. Newer private jets generally cost less to maintain early in their lifetime, but cost much more upfront.
A damaged aircraft can be repaired, but you need to know what kind of damage occurred and who fixed it, among other details. Perhaps more important for buying a private jet is the maintenance record. Knowing that the plane has been properly maintained provides peace of mind for such a large investment. Make sure to gather a complete listing of all additional installed equipment, including strobes, engine monitors, oxygen, special performance-enhancing kits, articulating seats, or anything else that may affect the jet’s performance or safety.
Working together with a qualified professional will ensure you make the right decision based on your specific travel needs. Regardless of what your decision is during the purchasing process, make sure you are working with experienced professionals, such as our own Sales & Acquisition advisors.