How do you decide whether to buy a new or used aircraft? Many people ready to purchase, especially for the first time, are struggling to answer this question. Some may think that it all depends on whether you can afford a new one or not. But others may think that the less-costly option is the way to go.
While money is the primary determinant, it shouldn’t be the only guideline for a smart prospective buyer. Every individual will decide based on his personal preferences and other significant factors. Let’s look at the pros and cons of buying either a pre-owned or a new aircraft; then, you can decide based on your preference and financial capacity.
Benefits of Buying a New Aircraft
New aircraft come with warranties
Unlike pre-owned, new aircraft come with warranties covering engines, avionics, airframe, interior, and many other components for about five years. You will not have to spend an arm and a leg on repair and maintenance because the costs will be negligible during the warranty period.
Many dealers or manufacturers offer support throughout the ownership of a new aircraft
Some buyers may buy a new aircraft because of the continued relationship with the dealer or manufacturer throughout the ownership period. Many dealers and manufacturers will assist with maintenance, tackle technical issues, and answer any questions concerning the aircraft. You may also get fixed prices for repairs from dealers for a period.
New aircraft are customizable
A buyer can customize a new aircraft to their heart’s desire. They can choose the interior configuration, the paint scheme, leathers, fabrics, and optional cabin and cockpit equipment. A buyer with a unique design preference may benefit from a new aircraft because they are unlikely to find their taste in the pre-owned market.
No worries about undisclosed mechanical issues
Unlike pre-owned, new aircraft rarely have undisclosed mechanical issues. If there are any issues, you’ll be covered because of the warranty. Pre-owned aircraft need to undergo thorough pre-purchase inspection for any mechanical problems.
Benefits of Buying Pre-owned Aircraft
The price is significantly lower
Money is a primary factor in purchasing an aircraft. If you don’t have sufficient funds to buy a new one, you can conduct thorough research and buy a pre-owned aircraft in good condition at a lower price. Fortunately, you can find a used aircraft that delivers a better value comparatively. A plane less than ten years old may arrive at the destination almost simultaneously as a new model making the same trip.
No waiting for your new aircraft to be ready
The demand for aircraft is high, forcing the delivery of new models to take longer. Some business people are not prepared to wait long and would rather go for the preowned market. If you need an aircraft within a short period, it is advisable to go for a pre-owned one.
The depreciation rate is slower
Brand new planes lose a significant value once off the assembly line. Older planes have depreciated over time, and changing their ownership does not cause immediate depreciation. If you are looking for something that you can resale after a short period for almost the same price or even higher, then a pre-owned plane is the best option for you.
Possible relationship with the manufacturer or authorized service center
When you buy a pre-owned plane, you may still be able to maintain a relationship with the authorized service center or manufacturer. Though you might not get the same level of services as a person that has bought a new plane, you can benefit from affordable maintenance services and advice.
An aircraft purchase depends on your purpose, financial stability, and how long you’ll need it. If you’re looking to purchase an aircraft, whether new or used, US Aircraft Finance can help. Our loan process is simple, quick, and convenient. We offer financial assistance for purchasing, refinancing, and upgrades.
Use our online loan calculator to determine how much aircraft you can afford, then give us a call! We are happy to answer any questions you may have. You can also visit our website and read our previous blogs to learn more.