If you travel often for work, covet the freedom to come and go as you please, and have the financial means to make a large investment, you might consider buying a private jet. Private jets can be a prudent investment for some, but before you fully commit yourself to a purchase, there are two important questions to consider.
- Is a personal jet worth it for you?
Full ownership of a jet isn’t typically cost efficient for individuals who log less than 100 hours per year. This will also depend on the distances you travel. If you travel less often but would really benefit from the flexibility of being able to take off at a moment’s notice, a personal jet may still be a smart investment. If you plan on re-selling the aircraft, remember that similar to new cars, jets take a steep depreciation hit during the first few years.
- Can you cover the costs?
Obviously, the cost of purchasing a jet will vary greatly depending on the year, model, and custom features available. For example, a 1979 Falcon 10 with less than 15,000 hours logged will set you back around $400k. But a shiny, new Gulfstream 550 will likely cost $50 million or more. When you consider the finances, don’t forget to factor in crew salaries, insurance, routine maintenance, fuel, airport landing charges, and hangar fees.
Although envisioning yourself reclining in your very own private jet may be intoxicating, you have to consider the possibility that a personal jet is more of a want than a need. But if you have carefully considered the long-term financing and suitability of the purchase, there’s nothing stopping you from making your vision a reality.
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