Is a private jet really necessary or is it a whim?
First, check out the reasons why you would want to buy a private jet. From a strictly economic point of view, it is necessary to calculate whether the purchase is worth it. We may be haunted by the desire to be admired, to appear, to invite friends or to conquer people of the other sex by offering to come with us on our private jet. In these cases, it is important to assess whether the purchase is worth the money. Perhaps a seaside residence would be a better investment for our social life, with a much lower purchase and maintenance cost and above all no depreciation.
Take into account its rate of use
A private jet is expensive both to buy and to maintain. So either you buy it to travel at least a hundred thousand kilometers a year, or half if it’s a very light private jet, or it won’t be a good investment. Buying a private jet to fly a few dozen times a year from Paris to London may not be a good deal. For a trip like Paris – Rome, this can already be worth it.
Take into account the depreciation of the private jet
Even if you don’t use it, a private jet loses several hundred thousand euros of value every year due to depreciation. An average private jet can be bought for around twenty million euros; its resale price after nine years will be around 4 to 6 million euros, depending on its condition. Obviously, if you buy it new, the depreciation will be stronger, especially in the first years. Even keeping it in a shed is expensive.
Consider the number of passengers
Choose a private jet that has the right capacity for the average number of passengers you plan to carry. Obviously, the more passengers you transport, the more profitable the investment. If it’s used for business, and often have to transport several people to places served only by small airports, it can even save us money compared to the cost of transport with airliners.
Provide for piloting costs
Depending on the use you plan to make of your private jet, paying a pilot can have quite variable cost. For example, one thing is to go back and forth during the day, and something else to come back after several days. In this case, it is necessary to foresee the expenses to allow the pilots to leave and come back, or else to stay for the duration of our trip.
Maintaining a private jet is expensive. You can entrust it to a specialized company, or manage the maintenance yourself by choosing the service providers.
Parking your private jet outside is undesirable, as inclement weather promotes degradation. Renting a hangar at an airport like Paris Charles De Gaulle costs thousands of euros per month. The less the airport is trafficked, the more the price of hangar rental goes down.
Before buying a private jet it is better to find out about the tax deduction available. For example, how to deduct all purchase and maintenance costs if you have a business.
Choosing the right type of private jet
Consider the maintenance costs, the fuel consumption, the possibility of finding pilots who are familiar with this type of jet, the likely resale value.
Evaluate the benefits of renting a private jet
At least initially, wouldn’t it be better to hire a private jet, to experience the pros and cons of owning a private jet?