Buying a corporate jet can be an excellent move for businesses for many reasons. As with any major purchase, however, there is a wrong way to go about it. For the smoothest purchase process possible, keep in mind and avoid these common mistakes.
- Treat a business jet purchase like a car deal. An aircraft purchase takes weeks or even months — you can’t simply waltz into a dealership and negotiate a good price, then drive off the lot as a happy new jet owner. Private jet purchases are complicated deals that require you to identify your needs and then research to determine the right aircraft to meet those needs — and that’s just the beginning. Be prepared to put in the time and effort necessary for a successful purchase.
- Fail to compare all your options. With a firm grasp of exactly the business requirements that need to be met through a private aircraft purchase, it is imperative that you rigorously compare all your options, including charters, fractional ownership, whole ownership, and the like. Only with an open mind can you make the right decision for your organization’s situation.
- Focus solely on purchase cost. An aircraft costs more than simply the purchase price. Buyers need to understand capital and operating costs, and ensure they budget conservatively for maintenance and upgrades.
- Skim jet logs and records. Failure to conduct a thorough evaluation of jet logs and records for preowned aircraft spells danger. Dig into documentation, which should be complete and comprehensive, and include components with a limited life cycle, records of maintenance programs to ensure they conform to manufacturer and industry best practice recommendations, and damage history.
- Entertain the expectation that an aircraft will appreciate. The value of an aircraft should be viewed through its benefits to the organization, rather than as an appreciable investment. Buyers can expect their aircraft to depreciate at least 5% each year.
Finally, the biggest mistake that first-time and inexperienced jet buyers make is to go it alone. All of these common mistakes can be sidestepped through the guidance of experienced and knowledgeable professional assistance. Help from L & L International’s brokerage services will not only help you avoid pitfalls, but also ensure the details are addressed and your organization finds the right jet at the right price.
Contact L & L International if you need assistance in purchasing or selling a private jet. You can reach our sales specialists today at sales@L-Lint.com, call us any time at +1.305.754.3313, or visit us online.
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