Should I buy a new aircraft or opt for a pre-owned one?

Purchasing a private jet is a serious investment and should not be taken lightly. There are multiple variables you need to consider before you make your final decision. What type of jet am I looking for? Is it going to be used for business or leisure? Are you going to charter it out when not in use? How many passengers will it seat and what amenities will it have? Once you’ve got a thorough idea of what you want. The next thing you need to think about is whether you’re going to purchase a brand-new aircraft or are you going to buy a pre-owned jet. In this article, we’ll look at some of the key differences between the two choices.

Buying a new aircraft

Let’s look at the advantages when buying a new private aircraft. Starting off with the less technical part, when purchasing new you are free to customize your new private jet as you please. This includes the color scheme of the exterior of the plane, the interior layout of the cabin which means the number of seats and how they are arranged, the materials they are made from, the amenities for comfort, and any other options the manufacturer offers.

Another thing you can look forward to is the manufacturer’s warranty that will cover any issues that may impact the airframe, avionics, or engines of your new airplane. And while we’re on the topic of avionics and engines, it’s worth mentioning that by buying new, the aircraft manufacturer will be providing your new private jet with state-of-the-art equipment and the newest add-ons they have to offer.  This all translates into having a better and more efficient jet that can handle most of the challenges that you throw at it.

Now that we’ve gone through the upsides of buying a new jet let’s look at the disadvantages. If you order your jet by the end of this year you won’t be getting it anytime soon. All major private jet manufacturers have a waiting period of 24 months. This isn’t a new development. In fact, this has been the case for well over two years. The market is dictated by a simple formula of supply and demand, and with current market conditions, this isn’t going to change anytime soon. While demand is great, jet manufacturers refuse to increase their production, due to problems with the supply chain and a shortage of parts.  Taking all of this into consideration, what does this actually translate into? Well, signing a purchase agreement today will probably get you your new private jet by the tail end of the year 2025.

One more thing to keep in mind is whether you’ll pay the same price that’s on the agreement when you take delivery of your plane in two years. The price when you take delivery of the plane in 2025 will be charged with a customer price index or CPI for short. And despite the surcharges the backlog of manufacturers is breaking records

What about purchasing a pre-owned jet

Now let’s look at the advantages of purchasing a pre-owned jet. Well, once you start the purchasing process for the private jet you’ve chosen, you can take delivery of it within a few months instead of a couple of years. And since the jet that you’re buying has been pre-owned you’ll probably look at a significantly reduced price tag. Let’s say a brand-new jet costs somewhere in the vicinity of US$ 25 million, then an older model of the same jet (5 years or older) could be purchased for almost 50% less. In short, the biggest advantages of buying a pre-owned private aircraft are savings in the form of time and money.

Now let’s look at the other side. Buying a pre-owned jet means that your choice becomes a bit limited by what’s on offer, your specifications have to be realistic and you’ll be purchasing an aircraft that has already been specified to the needs of someone else. Now you could, of course, have the aircraft refurbished to fit your needs but that also has its limits and will cost you additional money. Money can also be invested into overhauling your avionics if you want to have the newest equipment on your airplane. All things worth considering when you’re purchasing your pre-owned jet.

A good way to go about purchasing a pre-owned jet is to look for a reliable business jet brokerage company that will help you through the purchasing process. This should include a  Pre-Purchase Inspection which will help you uncover any problems the jet might have.