If you’re in a position to buy an aircraft, you already know it’s likely to be one of the more significant purchases that you’re going to make in your lifetime. In fact, private business jets range in price anywhere from $3 million to even hundreds of millions of dollars – and that doesn’t even include the annual costs to maintain it. It goes without saying that you want to ensure you buy a jet that’s going to do more than just meet your expectations.

So what are the right steps you should be following when purchasing a business jet? If you’re asking this question, you’ve come to the right place. Read on to learn more about how to buy a jet, from initial research and planning to what to know throughout the acquisition process and post-purchase logistics. Here’s a closer look:

Research and Planning

The first step with any major purchase is researching and planning it. We’ll get into budgeting and financing in the next section, but certainly shopping for any jet should start with a thorough assessment of what you need and what you intend to use the jet for. Ask yourself questions to narrow your search such as:

• How many people are expected to regularly be flying on it?
• How often will it be used and how long are anticipated flights?
• Will it be used for leisure or business purposes? Or perhaps a mix of both?
• What types of features are a requirement?
• Will I be flying the plane or will it be staffed by professional pilots?
• How easy is it to fly?
• What kind of landing gear does it come with?

Once you get a better idea of how the aircraft will be used, you can begin to narrow your search based on certain types of aircraft and aircraft models.

Budgeting and Financing Your Jet Purchase

An extension of the research and planning phase involves setting your budget and knowing how you’re going to finance any business jet purchase. As we mentioned in the intro, business jets can cost several million dollars – and this doesn’t include annual maintenance, staffing, parking and ground fees, and more.

Your answers to the questions posed in the above section will likely dictate the type of jet that you’re going to want, so just how do you budget and finance it? In order to properly budget, you’ll need to get an idea of the prospective cost of the aircraft and then consider all the additional costs and fees you’ll have to pay for. Think of it like buying a car. In addition to purchasing the vehicle, you’ll need to account for insurance, maintenance, fuel, registration, and more.

Here are some tips for financing a jet purchase:

• If you don’t have the money on hand to pay cash, you can take out a bank loan, work with a private equity firm, or work with a leasing company to finance it.
• Consider working with an aviation consultant, broker, or lawyer during the purchase process. They can help you find the right jet and help you work through the purchasing process.

Choosing the Right Business Jet

The right business jet for your situation is likely dictated by the results of your research and planning phase. However, one of the biggest decisions you’ll often have to make during the purchase process is whether to seek a new or pre-owned jet. Both have their pros and cons. While new jets are more expensive, they’re equipped with the latest features and include warranties that tend to reduce maintenance costs in the long term. However, pre-owned aircraft are less expensive, depreciate slower, and still often have some key features. What’s more, pre-owned doesn’t necessarily mean it’s a dated aircraft. Many pre-owned aircraft available are only a year or two old. If you go the pre-owned route, just be sure to have it inspected by a professional, qualified aircraft mechanic and retrieve any service records.

Your consultant or lawyer will be able to help you narrow down your aircraft search to the makes and models that best suit you and your needs.

Navigating the Acquisition Process

The aircraft acquisition process can be very tricky, as is the case with most purchases involving high-value targets and properties. It’s where an aviation consultant or lawyer can really come in handy.

Once you find an aircraft that you like, you’ll make an offer. From there, the seller is likely to negotiate until an agreement is reached. Once an agreement is reached, you and the seller will close on the aircraft, usually with the help of your consultant or broker. It’s a process that tends to be similar to purchasing a home considering all the necessary paperwork, title transfer, and other documents involved in the process.

Buying a jet is more like buying a home than buying a vehicle – you’ll want someone on your side representing your best interests, complying with any federal regulations, and helping negotiate the best price possible.

Post-Purchase Logistics

After you’ve figured out how you’re going to officially acquire your jet and have worked with a specialist to get the job done, there are a number of post-purchase logistics that you’ll need to carry out to officially cross the “t’s” and dot the “i’s.” This includes the likes of insurance, registration, and taking care of any asset values, like the hangar and more. These are all tasks that the purchasing consultant or lawyer can help with as well.

In addition to some of the more formal logistics, you may also want to take some steps to make the aircraft feel more like your own. This may consist of detailing the aircraft, upgrading the avionics, and more.

Contact J.A. Air Center Today

For more information on how to buy a jet and successfully navigate the acquisition process, contact J.A. Air Center today.