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
Four factors of production | AP Microeconomics | Khan Academy
An idea that will keep coming up as you study economics is the idea of the four factors of production, which are usually listed as land, labor, capital, and entrepreneurship. The idea here is if you want to produce anything, so let’s just say this circle …
It's Time To Fight Back Against China!
Kevin, are you a tariff man? I am actually in the case of China. I don’t like tariffs generally, but China, we’re in an economic war with. There’s 100% that that’s the case. They don’t play by a level playing field. I do business there, so this is not an …
Traditional Norwegian Cuisine | Gordon Ramsay: Uncharted
[Narrator] Gordon Ramsay headed to Norway to learn how to cook like a true Viking. But how this region developed some of its traditional dishes happened long before these explorers took to the seas. I want to move to Norway. (laughing) (gentle music) [N…
If You Know These 15 Words, Your English is EXCELLENT!
I’ve got 15 words - and if you know all of them, your English vocab is better than 97% of people worldwide. In other words, you’re an English vocab pro. So, do you think you’re in the top 3% of English speakers? Let’s find out. Here’s how this is going to…
Seven Wonders of the New World | Cosmos: Possible Worlds
NEIL DEGRASSE TYSON: We all feel the weight of the shadows on our future. But in another time, every bit as ominous as our own, there were those who could see a way through the darkness to find a star to steer by. Carl Sagan wrote, “I was a child in a tim…
Worked example: Using formal charges to evaluate nonequivalent resonance structures | Khan Academy
[Instructor] We’re told that three possible resonance structures for the thiocyanate ion are shown below. All right, there we have them. Based on formal charges, which of the three structures contributes most to the resonance hybrid of thiocyanate? And …