Many factors can influence a person’s decision-making process when it comes to purchasing a private jet, and it’s important to consider all of these before moving forward. It is best to work with a broker during the purchase, but you will be able to stay informed throughout the process.
Steps to Take During the Purchase of a Private Jet
Buying a private jet is a big investment that should be taken seriously. If you are not feeling ready for that by the end of this article, consider just reaching out to a private jet charter New Jersey company to get the experience instead. Chartering a private jet is a convenient way to travel.
1. Determine Your Needs
One of the biggest mistakes that potential buyers make when it comes to searching for a private jet is not taking the necessary time to understand their specific requirements. Having a good understanding of these requirements can help you make an informed decision. There are a variety of tools that can help you determine the type of aircraft that fits your needs, such as an aircraft cost evaluator.
2. Figure Out Your Travel Requirements
Before you move forward, you should analyze your past travel. This will help you determine the type of aircraft that best fits your needs. Will you be flying frequently for work? Will it be used for vacations or weekend trips? Will you bring a lot of people with you? These questions will help you determine the type and size of aircraft you will need.
3. Determine Your Budget
Don’t assume that a $4 million plane is a better buy than an $8 million one. There are many expenses associated with ownership, such as annual maintenance and the operation of the aircraft. In addition to its operational expenses, you should consider how you can make money from allowing others to pay for flights with your private jet. This will help offset some of your costs.
4. Decide on Buying New or Used
New planes often come with warranties that help in the event you need costly maintenance. For this luxury, you will have to pay a lot more than a used plane. Older planes are more affordable to purchase. On the other hand, they are often more expensive to maintain because of their age. If you plan on keeping the aircraft for a long time, you might want to consider a life-cycle expense analysis, which will allow you to compare the cost of ownership over the life of the aircraft.
5. Inspect the Aircraft Before Buying
It’s never a good idea to buy something as expensive as a private jet before seeing it in person. Don’t rely on the listings. Take time to see the aircraft in person and visibly inspect it. A private jet is expensive and you will want to ensure your investment is worth it.
6. Offer Letter of Intent
This will give you the necessary details about the sale, such as the price, deposit amount, and terms of sale. It should also contain an expiration date that allows you to withdraw at any time.
7. Put a Deposit Down
Just like a down payment when you purchase a new car or home, you will have to come up with a deposit to purchase a private jet. Typically, you can expect to put down a 5-10% deposit. This will be paid before the purchase and will go to either an escrow agent or the broker.
8. Have a Pre-Purchase Inspection Performed
This is another step in the process of buying a private jet, and it should never be skipped. It is best to work with an experienced advisor during this part of the process. A licensed and reputable aircraft mechanic is key to getting the aircraft properly inspected. If possible, find a mechanic that specializes in the type of aircraft you are looking to buy. They will provide you will a detailed list of discrepancies and deficiencies you need to know about before moving to the next step of the buying process.
9. Fill Out the Purchase Agreement
If you are not familiar with aviation law, most brokers will recommend hiring an attorney who has experience in such transactions. The purchase agreement will cover a wide range of terms, such as the deposit amount, the purchase price, the timing of the inspection, and the location for the refund.
10. Complete the Closing
The last step in the process of buying a private jet is delivery and closing. However, there are still a lot of steps that need to be completed before the aircraft can be handed over to you. Some of these include transferring the title to the new owner, moving the money into and out of escrow, and getting the aircraft insured.
Now that you have completed all of the steps, it’s time to wait for the delivery of your new aircraft. You will now be able to travel anywhere in the world on your new, luxurious private jet.