Have you ever fantasized about having your own private jet and taking to the skies in it? It might not be as unheard of to purchase a private jet.
The initial cost of the aircraft will cost $1.1 million to $90 million, brand new, however, used jets will still cost millions of dollars.
Learn about the costs of owning a private jet, its benefits, and the things you should look for when buying a personal aircraft.
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How Much Does It Cost to Buy a Private Jet?
You have a choice between brand-new and used private jets if you’re considering purchasing one. Although a new jet will give you the most modern technology, a used jet will cost less due to its older amenities.
Jets come in many different varieties, from small six-seaters with short range to larger airliners with long range. The most common jet options available include:
- Very light jets: These aircraft, which are the smallest private jet option, can carry four to seven passengers and travel distances of up to three hours. Depending on the type, prices can range from $1.5 million to $5.5 million.
- Light jets: These jets can hold a bathroom and carry up to eight passengers. They are a little larger than the very light jets but are still small. For purchase, light jets can cost anywhere between $900,000 and almost $6 million.
- Midsize business jets: Midsize business jets are ideal for both short- and medium-distance flights because they have a five-hour maximum flight time capacity. A larger cabin that can hold five to ten passengers, two pilots, and a flight attendant are all standard on midsize jets. They also have more storage space. $10 million to $9.9 million is the price range.
- Super mid jets: Super mid jets have more room, a greater range of flight, and can move more quickly than smaller aircraft. The price of these aircraft at new retail varies from $5.4 million to $26.7 million.
- Heavy business jets: These offer significantly more room, can accommodate at least ten passengers, and come equipped with amenities like pull-out tabletops and full kitchens. Prices for heavy business jets range from about $27 million to $39 million.
- Ultra-long range heavy jets: Jets like these hold enough space to act as flying hotel rooms. They can carry up to 17 passengers and travel up to 6,500 miles, and they have full-size beds and plenty of space to spread out. An ultra-long-range heavy jet will typically cost between $35 and $62 million.
- Airliners: Airliners are the most opulent and spacious choice for private jets, and they may have amenities like a full bathroom or a cocktail lounge on board. Additionally, they can make trips that last longer than ten hours. The most expensive choice is also an airplane, with various models costing between $418.4 million and $500 million.
The amenities and customization you select for the plane may also affect price. Owners of plans can select their own furniture, unique decor, and even different rooms.
New Private Jets
A new private jet can cost anywhere from $3 million to $660 million. The size, manufacturer, range, level of customization, and features the jet offers, such as the engines and avionics, all affect the price.
Used Private Jets
Jets cost millions of dollars even though used ones are less expensive. For comparison, a pre-owned 2019 G600 S/N 73008 sold for more than $54 million on the Gulfstream website in June 2022. Price hikes to hundreds of millions of dollars are possible with add-ons and customization.
How Can You Finance a Private Jet?
Consider your financing options before buying a private jet. It’s likely that you’ll need to borrow money since very few people can pay the full cost of a jet.
Personal Loan
You can get a personal loan to finance the jet upfront and repay the loan over time by borrowing money from a bank or credit union. But it’s much harder to get a personal loan for a private jet than it is for a new car. Even the most affordable private jets can run into the millions of dollars, and only a few lenders will approve a loan for that much money.
To get a private jet loan from a bank, make sure you have excellent credit and a strong financial background. A secured personal loan, which would require you to put down a pricey asset like your home, is another option you might consider. The lender will have the right to legally seize your asset if you are unable to pay back the loan.
JetLoan Capital, JetLease Capital, and Global Jet Capital are a few lenders that specialize in loans for financing private jets. You can also estimate your monthly payments using the online loan financing calculator provided by the Aircraft Owners and Pilots Association.
Leasing
Consider leasing if you’re not quite ready to buy a private jet because it has many of the same advantages as owning one. Leasing a private aircraft is comparable to leasing a new car, with lease terms ranging from a few months to several years. Most aircraft companies allow you to choose between a few different types of leases:
- Wet lease: A minimum of one crew member is covered by the lessor in addition to the aircraft itself. Because you must also pay for the services of a pilot or crew, wet leases are a more expensive option.
- Dry lease: The lessor is required to use their own crew members but is required to pay for the aircraft without the cost of a crew. If the lessor already has a pilot and crew member they can hire for flights, this is a less expensive choice.
Before making a commitment to buy a private jet, leasing one is a great way to try out various models. Additionally, lessors avoid dealing with depreciation or selling the plane if they decide to buy a new one because they do not technically own the aircraft.
Things to Consider before Purchasing a Private Jet
Here are the details:
Hourly Rate
The first logical question that comes to mind is: How much do you fly? Vendors of aircraft will claim that buying a private jet outright is justified if you fly 200 hours per year. Keep in mind that they are also attempting to sell you one.
Aircraft brokers who offer fractional ownership in a plane will say it’s more like 400 to 600 hours. They are obviously also attempting to sell you something. Fractional ownership is similar to a timeshare in real estate.
In order to operate a private jet at a reasonable cost, it is generally accepted that at least 240 hours of flight time must be flown annually.
Your Travel Routine
When deciding whether to purchase a jet, your travel habits may be even more crucial than air hours. For instance, you will be responsible for the cost of returning the plane and its crew if you frequently schedule one-way flights.
The pilots, crew, and plane must, on the other hand, be accommodated for the entire time or sent home if you intend to stay at a particular location for a week or more. In both situations, it’s possible that the costs will outweigh the advantages of starting with a purchase.
Ongoing Costs
No matter where or how often you plan to fly, jet owners must contend with significant ongoing costs, starting with routine maintenance and on-the-ground downtime.
Unexpected repairs are another issue. It can cost between $2,000 and $3,000 to replace a blown tire. There’s also hangarage—meaning a parking spot in a hangar—plus crew salaries and aircraft insurance. You, as the owner, are responsible for everything.
As a general rule, you can anticipate spending between $500,000 and $1 million annually on operating expenses.Many useful aircraft cost estimators are available online. Even the costs associated with particular jet brands and models are broken down on one website.
If you do decide to buy, there are a number of buying consultants and aircraft management companies that can assist you in setting up the purchase and maintaining it for you.
A cost-effective option is to fly on a used private jet. Used models can be purchased for as little as $200,000 and as much as $15 million.
Advantages of Buying a Private Jet
As you might expect, purchasing a private jet has a number of benefits. In addition to offering a symbol of elite status, owning a private jet also comes with a host of additional benefits, such as accessibility, privacy, and full customization options for your aircraft.
Privacy and Confidentiality
You can significantly reduce the amount of travelers you encounter by owning a private jet and avoiding the hassle of using a public airline. You can avoid security screenings and public travel registrations when using a private jet.
Customization
You can choose from a variety of options for your own private jet, allowing you to completely tailor the hull to your individual requirements. Perhaps having a complete kitchen is essential for hosting guests, having an office is required for conducting business, or having a fully customized workout area is a top priority.
Accessibility
Purchasing a private jet also has the benefit of enabling travel to remote locations or locations away from busy airports.
Disadvantages of Buying a Private Jet
Similar to any major purchase, purchasing a private jet has drawbacks as well. These drawbacks include a number of ancillary costs, operational difficulties, and depreciation issues.
Initial Investment and Upkeep Costs
Obviously, the initial cost of purchasing a private jet is high. The down payment and probable upgrade expenses are substantial even if the purchase is financed. You’ll have to pay on-going maintenance costs after the plane is ready to fly. Fuel and fluids need to be replaced, parts can collide with debris and wear out and break.
Hiring and Managing Flight Staff
Having highly skilled crew members to help you operate your private jet is another requirement for operating one. Whether or not you fly the aircraft yourself, the size of your private jet, the frequency of use, and the number of passengers carried all affect the size and subsequent cost of a flight staff.
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Summary: How Much Does a Private Jet Cost?
A private jet’s purchase is astronomically expensive. If you want to fly privately, there are many options even though owning a private jet may be out of your price range. Consider hiring a private jet or signing up for a private jet service that enables you to fly frequently throughout the month or year.
You might be able to obtain a personal loan from a respectable bank if you decide to buy a private jet, or you could look into your options with lenders who specialize in lending for aircraft. To ensure you get the best deal possible, shop around and obtain quotes from several providers, just as you would with any loan.
If you have any questions, please leave a comment. Thank you for reading.
