How to Buy Private Jets

By Robert Vaux

  • Overview

    Private jets are a status symbol of unparalleled potency, giving you the ability to fly anywhere in the world whenever you choose. As luxury items, they are extremely expensive and often contain additional fees such as fuel costs. For individuals with the means, however, and for corporations that require their executives to do a lot of traveling, they solve a number of logistical problems. They also eliminate lengthy waits at the airport and can prove infinitely more relaxing since you needn't be distracted by other passengers while in flight.

    • Step 1

      Consider whether you wish to buy a jet flat-out or take a less expensive option such as leasing. Aircraft management companies sell shares in private jets, permitting you to pay a monthly fee and fuel costs and then make use of whichever jet is nearest to your location. You must share the jet with other "owners," but it is very cost efficient if you don't fly often enough to justify a full-bore purchase. Generally speaking, you should only consider buying a private jet outright if you log 350 to 400 hours of flight time each year.

    • Step 2

      Calculate costs besides the purchase of the jet itself. That includes the cost of fuel, hiring the pilots and mechanics, paying for repair costs and handling any insurance costs entailed in flying. That can total $100,000 a year or more, though jet management services are available to handle all of the details for a single fee.

    • Step 3

      Think about your flying range and the number of passengers you will need to carry. Small-end private planes have a range of about 1,500 miles and can seat three to six passengers. They run about $3 million to $8 million. Mid-sized jets have a range of about 3,000 miles and can carry up to 10 passengers: Their price tag tops out at about $15 million. The largest jets have a range of up to 6,000 miles and can hold more than a dozen passengers: The high-end versions can run as much as $50 million.

    • Step 4

      Speak to your local airport about hangar space, flight scheduling and other necessities for keeping a private jet. Jet management companies can handle such details for you, but if you have a regular base of operations where the jet will be located, it pays to know what will be entailed in housing it.

    • Step 5

      Call up a number of private jet companies and ask them about the prices on the models they offer. The best-known jet companies include Cessna, LearJet, Boeing and Gulfstream. Though jets are more expensive than most products, the process of shopping differs little at its core. It pays to look at different options, consider the cost in relation to your needs, and compare similar models offered by different companies to see which one provides the best option. You can then make the purchase of the private jet that's right for you.
    • Skill: Moderate
    • Tip: If you cannot afford a new jet, numerous dealers sell used jets at big discounts. A repossessed jet or one that has a few years on it can still deliver the same quality as a new one for a fraction of the price. Take care when you purchase a used jet to make sure it meets all FAA standards, however, and be prepared to invest a little more in maintenance fees than you would with a new jet.
    • Tip: If you use a private jet primarily for business, the costs of maintaining it may be tax deductible. Consult with the IRS or your accountant if you feel your situation may warrant it

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