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Aviation Financing 101: Buying New v. Buying Pre-Owned Luxury Aircraft

Posted by GJC Insider on 11/17/16 8:30 AM

When businesses are looking to acquire their own air transport, used private aircraft for sale are often a second choice for no good reason. Businesses and executives can find high volume, pre-owned private jets available for sale that not only provide substantial cost savings, but have the service and support they need that rivals a new aircraft manufacturer’s warranty support. For those looking to reduce their costs without having to sacrifice an advantageous mode of transport, buying pre-owned is sometimes the best option. Let’s consider the advantages of pre-owned versus a new aircraft.

The Advantage of Buying Pre-Owned

Private jets for sale that have been gently used are a sound option for a number of reasons. A gently used aircraft will be fairly easy to underwrite, so getting the liability insurance, etc. should be no problem. While the tax benefit is often higher for a new aircraft, a pre-owned aircraft can usually still be written off for taxes at a substantial discount.

The biggest advantage to buying a pre-owned aircraft is the price. A pre-owned, five-year-old aircraft can retain about half of its original tag price. Obviously, this pricing change is not always in the best interest of the consumer, so it may be a good option to purchase a gently used aircraft.

 

The Advantage of Buying a New Private Jet

There are a couple of advantages to buying new that don’t exist when buying a pre-owned aircraft. The most notable one is the tax deduction, but there are other reasons why buying new may be the right decision for your company.

For starters, new aircraft is simply more capable than their older models. These new technologies and amenities can lower operating cost considerably and potentially make them more versatile than their pre-owned counterparts.

Another factor you may want to consider is maintenance costs. As an aircraft ages, the costs of maintenance are likely to increase. Parts and accessories wear out, and can be harder to find as time passes. Not only do these rare parts cost a bit more, they can be harder to track down and leave your aircraft out of commission for longer than expected – translating to lost business or revenue.

The availability of warranties should also be considered. New aircraft warranty typically cover the first five years of aircraft operation, helping you to overcome any unexpected maintenance fees while saving you on both parts and labor costs.

If you or your company have been thinking about buying or leasing a private aircraft, choosing between new or pre-owned is often a matter of trade-offs. While there is no definite answer to guide you towards either direction, a complete financial and needs analysis can point you in the right direction.

Using their expertise, financial strength, industry relationships and infrastructure, the team at Global Jet Capital is proud to offer pre-owned private jets for sale at an affordable cost. In just over a year in business, Global Jet Capital has asserted themselves as a leading private aircraft financing company, helping hundreds of clients from all across the globe with private aircraft leasing and ownership. Find a financing solution that fits your budgetary needs and contact Global Jet Capital by calling +1 (844) 436-8200.

Tags: Buying a Private Aircraft, Private Aircraft, Corporate Aircraft