Just like when you’re buying a car, there are advantages and disadvantages to buying new or pre-owned aircraft. For some, the extensive support from the manufacturer may be worth the extra price for a brand new aircraft. For others, buying an asset that depreciates as much and as quickly as a private plane makes buying pre-owned an attractive option.
The primary reason that some operators buy new aircraft is a continued relationship with the dealer or manufacturer. In most cases, dealers and manufacturers will offer support throughout the ownership of your aircraft, assisting with maintenance, technical issues, and any other questions you might have. New aircraft come with warranties, and once they expire, the only warranty you’ll see on a pre-owned aircraft is for a clear and unencumbered title. Depending on the state of the market, you may be offered a discount or other benefits, such as free maintenance or training entitlements.
Another reason people prefer to buy a new aircraft is the opportunity to customize it to their liking. For those who want discounts more than customizations, some market conditions have forced manufacturers to sell “white tails,” or aircraft that were built in anticipation of demand that didn’t materialize.
Usually, however, those who buy new aircraft do so with the understanding that they must wait for the aircraft to be built. In those cases, the buyer is able to choose exactly what he or she wants on the plane, including interior colors, wood, paint, and avionics. For some, that opportunity is worth the price of a new aircraft over a pre-owned one.
While any major issues with new planes are caught in the factory’s rigorous testing protocols, planes sometimes need a few hundred hours of flight before all of the minor glitches are identified and tweaked. Other disadvantages to buying new are purchase price and depreciation. Pre-owned aircraft values obviously slide, as well, but it typically happens at a much slower pace in the current market conditions.
The advantages of buying pre-owned are pretty straightforward. The biggest advantage, of course, being that the plane is usually much less expensive than its brand new counterpart. When buying pre-owned, you’ll typically still maintain a relationship with the manufacturer and/or authorized service centers, though you may not get quite the same level of service that somebody who buys new will get from the manufacturer. The level of service you receive from a service center depends heavily on its reputation. Ask around and do your research before committing to a service center to ensure you’ll be accommodated.
With a pre-owned plane, you always run the risk of getting into an aircraft that has undisclosed mechanical issues. While this also is true of new aircraft, there isn’t a warranty on pre-owned planes, unless it is new enough to transfer the remainder of a factory warranty to a new owner. Pre-owned aircraft should be put through a thorough pre-purchase inspection to ensure the aircraft’s airworthiness.
What’s your opinion in buying or operating new versus pre-owned? Please tell us in the comments below.
Check out Charlie Bravo’s pre-owned aircraft on our Aircraft For Sale page.
