Access to a business aircraft is a sure sign of a well-run, forward-thinking business. However, like any investment, acquiring a private jet merits careful evaluation. Planes start depreciating in value the minute they’re purchased, making your financing decision among the biggest choices you’ll make for your business.
Determining the True Value of a Private Jet
Ensuring you get the best value out of your private jet can be a fairly complicated process. Once you understand all the complexities of choosing the right private aircraft for your needs, you’ll have the edge you need to succeed during your search for a private jet.
- Engine Hours:
It is important that the aircraft is used regularly. Regular use is good for the engine and keeps all parts lubricated and functioning as they should. It is also important to note how many hours the aircraft has logged to ensure routine maintenance of an aircraft.
- Damage History:
For obvious reasons, it is extremely important to thoroughly scrutinize an aircraft that has a history of repairs. Excessive damage repairs severely diminish the value of the aircraft, and can often shorten its service time. Repairs should be professionally reviewed by an outside, third party who is not in relationship with the current owner or prospective buyer to ensure that all repairs are made in compliance and accordance with Federal Aviation Administration regulations and their recommended practices.
- Enhancements & Upgrades:
This includes paint jobs, interior furnishings, equipment (air conditioning, avionics, deicing gear, etc.) and anything else that enhances the flight experience or makes flying more enjoyable. Whereas avionics upgrades may double the value of the aircraft, older equipment can drastically decrease the value because it will be harder and more expensive to maintain. In terms of in-flight enhancements (paint jobs and interior items), in is important to check new paint very carefully for any signs of corrosion that the paint may be hiding underneath. It is equally as important to check that all interior items have the proper fit and are in good condition. Not having the proper fit can lead to a lot of problems while flying and damage to the aircraft.
It is important to understand the language used to describe the conditions of the engine – top overhaul, major overhaul and zero-time. A top overhaul of an engine means that parts outside of the crankcase has been repaired, while a major overhaul signifies a complete disassembly, inspection, repair and reassembly of an engine to specific limits. A “zero-time” engine is an engine that has been completely overhauled to factory new limits as deemed by the original manufacturer and it has been issued a brand new logbook that does not contain the previous operating history. In this case, a private jet with a “zero-time” engine has a lot more value than a completely identical aircraft with an overhauled engine.
Closing the Deal
Assessing the true value of any potential aircraft is only the first step. If you decide to move forward and explore your aircraft financing solutions a bit further, you should schedule a pre-purchase inspection. Find a mechanic you personally trust, preferably one with experience in the specific kind of aircraft that you are purchasing so they can check for any known issues with the aircraft.
In addition to routine engine and parts check, the logbooks should be thoroughly combed over several times and reviewed for all necessary forms and materials (AD compliance, FAA Form 337 Repairs & Alterations, service letters, bulletins, and aircraft/component serial numbers) which would allow you to work efficiency and effectively should you ever need to have repairs or maintenance done after you take ownership.
Last and certainly not least: fly before you buy. It sounds so cliché, but it’s so important to not only feel what the aircraft feels like in the air, but to also check that the engine controls, buttons, and gears work the way that they should. A reputable seller will not have a problem with allowing you fly in the aircraft prior to purchasing it.
Purchasing an aircraft is a very important decision. You want to make sure you make the right decision, not just monetarily or financially, but also because of safety. If you feel a private jet is worth the investment, work with the representatives at Global Jet Capital to find aircraft finance options tailored to your specific needs. Our management team and executive committee has overseen over 3,500 aircraft transactions, giving us the industry expertise and experience needed to find the right financing solution for you. Start your investment process today by calling +1 (844) 436-8200.
Explore your financial options with Global Jet Capital here.