Knowing what you require before purchasing an aircraft for your company is critical if you want to make the best possible decision, especially if you are considering airplane finance. And searching for the best aircraft financing company is a tough job.
However, it might be tough to tell specifically what you’ll need if you’re a first-time buyer. Let’s take a look at some of the most crucial things to consider when buying an airplane. In this article, we will discuss the important things when purchasing a private jet for first-time buyers.
First-time Buyers’ Guide To Aircraft Financing
Acquiring a jet is unlike purchasing a vehicle, real estate, or any other asset. You’re about to enter a highly specialized, complicated, and controlled environment. To make it a pleasurable experience rather than a stressful and frustrating one, you must educate yourself and seek help.
Here are the steps you should take when acquiring an aircraft.
1. Find A Trusted Aircraft Acquisition Expert
When buying a private aircraft, it pays to deal with professionals, just as it does when buying a house.
Private aviation consultants can help you choose the perfect aircraft for your requirements, as well as explain the tax implications, contracts, and technical aspects of buying a private plane. The ideal partner should reassure you that you are making the best decision possible.
2. Know Your Budget
In calculating your budget, keep in mind the extra expenses that come with aircraft ownership, as well as the initial purchase price.
A professional aviation adviser can assist you in determining which aircraft will fit into your budget and developing a strategy for mitigating the costs of aircraft ownership.
3. Decide Between New or Pre-Owned Jets
The customer must choose between new and pre-owned aircraft. While the initial cost of a new private jet is more expensive, the warranties that come with them can support lower maintenance costs in the near run.
Buying a new plane also means getting the latest technology, conveniences, and comfort features that the buyer must determine whether or not to invest in.
Many pre-owned planes have the same capabilities as new planes, but at a cheaper initial cost and with the promise of slower depreciation.
Working with the appropriate partner to find and examine secondhand private aircraft is critical, but the immediate savings from a pre-owned plane may be substantial.
The phrase “pre-owned” does not usually refer to a 10-year-old private jet that has logged thousands of hours in the air. Some pre-owned planes are only a year old and have only a few dozen flying hours on them.
4. Aircraft Matching Assessment
Consult with an aircraft financing expert about your usual mission profile and personal travel preferences to narrow down your search to a selection of aircraft types and models that meet your requirements.
An adviser should be able to offer a comprehensive overview of the features and benefits of each type of private aircraft, as well as average running expenses. A reliable partner will look for an airplane that meets your specific requirements.
5. How Long Does Your Business Trips Usually Take
Before purchasing a private jet, it’s essential to consider the kind of distances you’ll be flying. Some businesses may be able to assist you. If most of your flights are inside the eurozone, there is no need to invest in a jet with a range of more than 6,000 kilometers.
Even if you wish to travel internationally on occasion, you can approach the east coast of the United States without refueling.
Some businesses provide clients assistance from their own private jet sales brokers, who can assist you in choosing the ideal plane for your needs.
If more than 10% of your flights are more than 6,000 kilometers, your broker will most likely look for a model with a minimum range of 9,000 to 12,000 kilometers. It is especially crucial if you need to travel outside of the eurozone frequently.
The Barriers When Purchasing Your Private Jet
Private planes may cost anywhere from $3 million to $90 million to purchase and function
Depending on whether they are new or old. A pre-owned Embraer Phenom 300 (a well-known Light Jet) would set you back between $5 million and $7 million.
The purchase price does not include the annual cost of ownership, which may be approximately $1.5 million. Variable rates vary depending on the number of hours and miles flown.
But a typical Phenom 300 owner may expect to pay $800,000 in variable costs if an individual flies 400 hours or more per year. Variable costs include fuel, maintenance, crew expenditures, food, parts, and landing/parking fees.
Recruitment and Handling Flight Crew, as well as Other Fixed Costs:
The cost of a private jet also includes pilot salaries ($100,000 or more per pilot plus benefits), insurance ($30,000 or more), hangar rental ($30,000), and a variety of other fixed costs such as renovating, recurrent pilot training, computer, and flight controls maintenance and navigation chart service.
Managing Flight Schedules and Money Creation:
Each aircraft owner’s demands are different, but releasing a plane for revenue generation while maintaining it for personal use is a tough balancing.
If not handled properly, synchronizing the schedules of owners, pilots, and passengers might be difficult. When managed by a dedicated team of specialists, scheduling flights and availability allows saving money.
Enjoy The Trip
Do not make a mistake by purchasing an aircraft without knowing the ins and outs! Do not get burned when you purchase your jet. Learn about buying or lending from reliable companies so that YOU can be successful in this venture.
Not just some fly-by-night outfit looking at their profit margin over yours instead of taking care of YOUR needs first like they should do for any client with such crucial decisions.
Purchasing your own jet is an important decision for you and your enterprise. And as a first-time buyer, you should take advantage of the information above to have a successful transaction with the right aircraft lending company. Congratulations on your purchase! Safe travels.