The idea of owning a private aircraft is not something common. After all, it is not just the money that you have to spend on a jet. You also need to maintain it and have a place to keep the aircraft.
Nevertheless, if you have the capital and have to fly often, it makes sense to eliminate crowds, ticket purchasing, and lines at the airport. Moreover, you need to consider the ongoing pandemic and how difficult it is to fly with commercial airlines.
Before you commit, though, keep in mind that you do not have to become a full-fledged owner. There is another option that might be more reasonable—leasing. Let’s take a look at both of these so that you have an easier time deciding which one between leasing or buying is better for you.
Buying the Aircraft
Being in full control comes with certain advantages. It also gives you the sense of being a proud owner of a private jet. Now, as far as the price goes, it obviously ranges from low to high (private jet-wise) depending on the year, make, brand, and other aspects.
Some private jets can cost as little as a couple of million dollars, and some are as expensive as hundreds of millions of dollars.
It comes down to one’s needs and budget, but you have plenty of options, from smaller jets that can carry up to four passengers and up to massive aircraft that are no different from commercial airplanes as far as passenger numbers go.
In case you are not well-versed in fiscal matters, you can always use various aircraft cost calculators online to estimate what the running costs would look like. Even if you have enough money to spend on a private jet, maintaining it is pretty expensive.
Moreover, you need to research the resale value of a model you would be purchasing. Who knows, you might get tired of the jet or want to upgrade it in the future.
If you decide to go with the purchase option, you should also not disregard aviation specialists like aerospace union that can help you get a better deal and consult on other related matters.
Financing institutions, such as banks and private lenders, could also prove a valuable asset, especially if you wish to spend more on a private jet than you can realistically afford. Taking a regular or an asset-based loan is not out of the question.
Finally, becoming an owner of the jet after purchasing it also means various financial benefits, including depreciation which lets you deduct some of the expenses that come with owning a private jet.
Leasing the Aircraft
Leasing is for aspiring private jet enthusiasts who do not have the capital to purchase one themselves or have the desire to take a loan, but they still fly often and would much rather use a private jet than spend another minute inside a commercial airplane.
Going with the lease means no long-term commitments while still getting the most important benefits, such as the freedom to operate a private jet.
Quite a few private jet owners are looking to make some money back after getting an aircraft, and if it is not in use, it makes little sense not to lease the jet to someone. There are two recognized leasing types:
- Dry-leasing: a lease type that gets lessors the lessee a jet without pilots and other crew members. Between the two types, this one is more common, and the deal usually lasts longer.
- Wet-leasing: a lease type that gets lessors a jet with the crew, insurance, and maintenance, though these deals are not that long.
As a lessor, you have the option to walk away from the jet after the lease is over. This means that you do not have to worry about paying depreciation, unlike those who own a jet and have to sell it.
Lastly, you can use a lease to test whether a private jet is worth it or not before you sign up for loans or other documents to initiate a private jet purchase. Despite feeling a bit different than someone who is an actual owner of a private jet, you can still get a feel for it and ultimately decide whether getting one for yourself in the future is worth it or not.
So there you have it. The arguments in this article ought to be good enough to give you a general idea of what both leasing and purchasing a private jet have to offer in terms of advantages and disadvantages. Weigh both of the options and go with one that you believe suits your interests and needs the best.