Most individuals or businesses who are interested in purchasing a private jet, are looking to purchase used. A pre-owned aircraft will not only be more affordable but will also be available for ownership sooner than if you purchased new. There are benefits to purchasing new and there are situations where that might be a better option. Below we will discuss each, along with their pros and cons.
It is said that used aircraft generally depreciate slower than new. They usually cost less money up front and in many cases aren’t as used as you may think. Many aircraft on the used market still have sections / seating that are covered and have never been used. Another benefit to buying used is that you usually don’t have to wait as long to have your aircraft delivered, versus if you purchased new.
One thing to note about purchasing used is being aware of maintenance costs. This is why it is important to properly test an inspect your aircraft before completing your purchase. There are going to be maintenance costs on your aircraft regardless. Although how much you are going to have to spend will be determined by how well you source, test & inspect your aircraft before closing the deal.
*During this time in the market, used aircraft are priced quite well as opposed to previous years.
Usually newer aircraft are covered from tip to tail with a 5-year warranty. They require less maintenance but generally take longer to have in possession. Sometimes anywhere from 1 to 2 years. Another benefit to purchasing new is that they usually come equipped with the latest technology and features to enhance your overall flight experience and improve safety.
A new aircraft will cost you more up front but generally not so much down the road. When purchasing new, maintenance will be required, but less frequent than if you were to purchase used. So maintenance costs might not be the same at the end of the year (or 5 years depending on your lease) with a new aircraft, as opposed to what they would be at the end of the year with a used.
*If you’re purchasing a newly released model that is also brand new. Then there’s a good chance you’ll be placed on a waiting list.
To determine which is the better way to go, would be quite difficult to figure out by only doing research online. It would take a very thorough financial analysis with your advisor or your team. As each option has its pros and cons which may work to your benefit, or to your disadvantage. Depending on where you stand as a business.