yego.me
💡 Stop wasting time. Read Youtube instead of watch. Download Chrome Extension

Why do billionaires buy used private jets?


less than 1m read
·Nov 3, 2024

Processing might take a few minutes. Refresh later.

Really super rich, why would you buy a pre-owned aircraft? You could say the same thing about somebody who's not so rich but fairly well-to-do, and they buy a used car. Sometimes you want immediate satisfaction, and if you want immediate satisfaction, you can't buy a new aircraft because it could take one to two and a half years to actually order an airplane and get it manufactured and delivered the way you wanted it custom made.

But the other thing is, like a car, an airplane isn't normally a depreciating asset. Once you buy it and take it off of the showroom floor, if you want to call it that, the price will depreciate. Of course, in the past year because of COVID and because of a lack of supply, prices actually went up instead of going down, which is a real anomaly. In the history of aircraft, that's never happened, which is about 60 years. But this is the first time it did.

Now the market is leveling off. If you could buy an aircraft for a significant discount if it's two, three, four, five, ten, fifteen years old, it does exactly the same thing as a new one. Maybe you might have newer avionics, which are the radios in the cockpit, or it might have a different altitude or something like that. But if you could buy some half price off of a new one, that makes a very convincing sales story.

More Articles

View All
Free Solo 360 | National Geographic
Anybody could conceivably die on any given day, and we’re all gonna die eventually. [Applause] So, Lange just makes it far more immediate. You accept the fact that if anything goes wrong, you’re going to die, and that’s that. [Music] I wasn’t the kind of…
15 Ways Your Worldview Changes As You Get Richer
The wealthier you get, the more your perspective of the world changes. You see it with different eyes for what the world really is and how it really works. Welcome to Alux! Up to a certain point, money 100% brings happiness and safety. But after that poin…
NEVER DISCUSS These 10 Subjects in order to Live a Stoic Life | Stoicism
STOICISM INSIGHTS Presents NEVER DISCUSS These 10 Subjects in order to Live a Stoic Life. Some things in this world are best left unsaid. Throughout history, powerful kingdoms and rulers have fallen from grace simply because of the exchange of one word.…
Charlie Munger Commencement Address - USC
Well, no doubt many of you are wondering why the speaker is so old. Well, the answer is obvious: he hasn’t died yet. And why was the speaker chosen? Well, I don’t know that either. I like to think that the development department had nothing to do with it.…
Building Your Board | Glenn Kelman
I’m Glenn, um, and I’m here to talk about building the board. I was surprised that James Slavit, the Greylock partner, asked me to discuss this topic because I’ve actually had sort of a fraught relationship with our board. In fact, I really didn’t have mu…
15 Books Steve Jobs Thought Everyone Should Read
Fifteen books Steve Jobs thought everyone should read. Welcome to a Lux Calm, the place where future billionaires come to get inspired. Hello A Luxors! We hope you’re having a great week so far because you’re about to receive something that’ll make it ev…