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
YC Fireside: Surbhi Sarna and Tracy Young - Founder of TigerEye and PlanGrid
Hi Tracy, welcome, and welcome to everybody in the audience as well. Tracy, you are such a legend more broadly and a legend in the female founder community. Certainly, I can’t think of anyone better to kick off Women’s History Month with. Thanks for havi…
The Natural Beauty of Rwanda | National Geographic
[Music] My job, I enjoy it very much. My contribution to conservation, it’s something that makes me proud. Working with rangers and patrols, with the guides, with animal trackers—this is the best office in the world. The growth of the country and the ener…
What Is ZIRP And How Did It Poison Startups?
Uhoh, one of the sinkholes, so to speak, that the money could go into is the asset class known as venture capital. And sinkhole it is. [Music] All right. This is Dalton plus Michael, and today we’re going to talk about what is ZERP and why did it mess w…
Vaping Is Too Good To Be True
What’s this? Oh, it’s only the best calendar we ever made. Vaping is kind of amazing – finally a less bad alternative to smoking. It delivers one of the most popular drugs in the world: Nicotine. It may improve your attention, concentration, memory, react…
Peter Lynch and Warren Buffett: When to Sell a Stock
Knowing when to sell stock is arguably the hardest question to answer in all of investing. There seems to be countless books, articles, and videos focused on how to analyze a stock and when you should buy a particular stock. However, there is much less at…
Why Are there Holes in the James Webb Sunshield? (Explained by My Dad) - Smarter Every Day 270
Hey, it’s me, Destin. Welcome back to Smarter Every Day. We are on the way to my dad’s work, and everything about this is weird. I have been trying to interview my own father for two years now at his work. The reason it’s so difficult is because he has a …