A Step-by-Step Guide to Purchasing a Private Jet

Buying a private jet is pretty much a sign that you’ve arrived. Only the richest and most successful people in the world can afford one, so when you buy a private jet, you make a statement about yourself and your success. But even if you are cost conscious, owning a private jet is not really an outlandish idea.

There are many like Warren Buffett, who would rather enter into a fractional ownership agreement for a private jet that allows them the use of the aircraft for a certain number of hours in a year. There are other millionaires and billionaires, who would rather charter a private jet.

While these options are open to you, it does make sense to buy your own private jet, as aircraft are selling for historically low prices, down considerably since the highs seen before the economic recession of 2008.

So, does it make Economic Sense to Purchase a Private Jet?

When should you really go for a private jet? Well, if you spend over 350 hours a year travelling, and spend more time than you would like in airport lounges, it’s probably time you considered buying a private jet. Of course, you will need to have the financial muscle needed to buy one.

An entry-level jet may cost $4 million - which means only a tiny percentage of the world’s population can afford these beauties. For more affordable options, you can always go for a fractional ownership of a jet or charter one, as discusses earlier. You may have to spend an additional $1-2 million on customizing the private jet according to your specific requirements.

How to Buy a Private Jet-

There are two ways to buy a private jet. One involves doing your research, knowing exactly what you want and approaching the manufacturers of these jets directly. The other way to buy a private jet is to engage the services of a professional aircraft consultant or a broker. They would do all the negotiations with the manufacturer on your behalf and deal with the complexity of the process.

 We suggest opting for the second option as professional aircraft consultants can make your task so much easier and get you discounts that you never thought possible. This saves you a lot of money and precious time as well.

Which Private Jet to Buy?

There are essentially three types of private jets you may consider buying.

Ø Light Jets have a 1,000 nautical mile range and can host up to six passengers.

Ø Medium Jets have a 1,500 to 2,000 nautical mile range and can host up to 8 to 10 people.

Ø Heavy Jets have a 2,500 to 3,500 nautical mile range and can host up to 12 to 16 guests.

You should buy a type that is suitable for your purpose based on how far you usually travel. If you travel overseas a lot, you may want to buy a Heavy jet. If your travel plans are restricted within the United States, then Light or Medium jets should serve your purpose well enough. Also, you will have to consider the number of guests usually with you during a trip and whether you conduct office meetings while on flight or not.

What is the Right Price for a Private Jet?

The prices of private jets vary widely depending on the state of the economy, how large the plane is, whether it is a new plane or an old one and its maintenance history. As of now, you can buy a nice private jet for anything from $3 to $10 million. Second hand models are cheaper and can be had for less than $1 million.

How to Finance Your Purchase

There are many specialist lenders who offer loans to finance the purchase of a private jet. Some lenders offer higher loan amounts and others a bit lower. There are lenders who finance only newly bought jets, for instance. Where you are located is also important - it could be hard to obtain financing for a private jet if you are based in certain countries of the world. As discussed earlier, it is best to hire the services of a good aircraft consultant or broker to get the financing arranged for the purchase. 

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