The process to purchase a private jet involves investment of time and money. In addition to selecting the best aircraft for you or your business needs, there are a number of steps that play an important role in making sure the process is successful. Purchasing a private jet is a complex process that calls for the advice of experts.

Here are a few points to keep in mind before you begin.

Hire a Jet Broker

Choose a Jet broker wisely.   Brokers charge a commission of 1-10% depending on the jet, however there are benefits to hiring a broker.  A Broker should have market knowledge and negotiation skills.  A broker can assist in identifying and mitigating risks. Brokers save time by streamlining the process and coordinating with parties involved in the process.  Brokers have broad access to jets both on market and off market.

Hire an Aviation Attorney and Accountant

An attorney ensures that the jet purchase agreements protect the buyers business and interest as well as avoiding FAA compliance issues. An attorney advises the buyer on the pros and cons of purchasing the jet under an LLC or Corporation.  An accountant sets up tax planning for the buyer.  Private jet ownership can provide many tax advantages whether the buyer purchases it fractionally or wholly.

Obtain Financing and Insurance

Two ways to finance a private jet is by a traditional loan or asset-based loan.   The three financial institution options are Traditional banks, Banks with Aircraft finance groups or Private lending groups.  Most lenders will require comprehensive insurance coverage prior to securing the loan.  Insurance provides coverage for owning, operating and using the jet. 

Get an Inspection

A pre-buy inspection ensures the aircraft has a good maintenance history.  The aircraft maintenance logbook should reflect this as well. A pre-buy inspection ensures the buyer is aware of any ongoing issues.  This process identifies unexpected costs such as damage or maintenance issues. A pre-buy inspection also ensures the buyer gets a fair deal on the purchasing price.

Key Considerations

Here are some additional things to keep in mind when buying a private jet. The cost of owning a private jet goes beyond the purchase price. You’ll also need to consider the cost of maintenance, fuel, insurance, unexpected repairs and hangar rental. If you’re not sure where to start, you can work with a private jet consultant, who can help find the right jet for your needs and help navigate the entire buying process. We would like to assist you with this process. If you have any questions at all, feel free to email us.