Purchasing a private jet is a significant investment, whether brand new or pre-owned. Both options offer unique benefits and challenges, depending on your priorities, budget, and intended use. In this blog, we’ll explore the differences between brand-new and pre-owned jets to help you make an informed decision.
Cost
Buying a new private jet is a premium experience. Prices can range from $7 million for light jets to over $75 million for larger, long-range aircraft like the Gulfstream G700. Additional costs for customization, advanced avionics, and the latest in luxury interiors can quickly add up. Jets like Falcon 6X can cost around 55 million USD and upcoming models from Gulfstream like G400 can cost around 30-40 million USD. If we consider Falcon 10X and Global 8000, both will be priced at 75 million USD price point. If you order one of these jets today, you’re probably two-four years away from delivery whereas a pre-owned model can be delivered within 60 days. Let’s assume you’re buying a jet priced at 60 million USD. You have to initially pay 10% of this price on the signing agreement. After that the manufacturer will start to order parts and materials for the jet. And in each stage as you’re the buyer will keep funding the build process. After a couple of months you will have to pay another progress payment to continue the build process.
One important point here is that prices of new jets don’t go down, they only go up with time. But prices of pre-owned jets go down from time to time by virtue of market depreciation. If we take an example of Gulfstream G550, the brand new price at the time of release was 41 million USD in 2004. In 2023, that price was around 52 million USD at the time of ending production. Now the 2004 year model that was selling 41 million USD new, is now selling 12.6 million USD which demonstrates market depreciation.
Customization
Buyers of new jets can personalize nearly every aspect, from seating arrangements to materials. Manufacturers like Dassault and Embraer often offer comprehensive customization options, allowing you to tailor the jet to your exact specifications. While pre-owned jets may have some limitations in customization, you can still refurbish the interiors to match your preferences. Avionics upgrades, repainting, and cabin renovations can bring an older jet closer to modern standards, though they come with added costs and time.
Maintenance and Warranty
New jets typically come with manufacturer warranties, covering repairs and replacements for several years. Maintenance costs are lower initially, thanks to the pristine condition of engines, avionics, and other systems. As new jets come with several years manufacturer warranty, often these jets are sold by their owners due to warranty expiration and they usually opt for newer versions from the same manufacturer.
Pre-owned jets may require more frequent maintenance, especially if they are older. While many come with maintenance histories, buyers should factor in the cost of inspections and potential repairs. However, options like engine programs and aftermarket warranties can help mitigate some expenses.
Availability and Delivery Time
As discussed earlier, getting a new jet takes time. Depending on the manufacturer and demand, delivery timelines can stretch from several months to a few years. During this time, the buyer has to keep paying the progress payment to continue the order. On the other hand, Pre-owned jets are available almost immediately, making them an ideal option for buyers who need an aircraft quickly. After completing inspections and necessary refurbishments, you can take ownership in weeks instead of years.
