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
Climate Change and the Migrant Crisis | Years of Living Dangerously
Nice to meet you. How big is this European migration crisis? Down, it’s big, and it’s getting bigger. We’re doing a story on the impacts of climate change on migration. Many of the people are fleeing conflicts; we just couldn’t believe that some weren’t …
Nestlé: The Most Evil Business in the World
So you’re nestled in the 1970s. You’re the inventor of baby formula, a life-saving creation for babies who, for whatever reason, can’t breastfeed from their mothers. But just helping moms who can breastfeed isn’t enough; it’s such a small segment of the p…
David Crosby is Star Struck | StarTalk
So we established that there’s an entire Geek Side to David Crosby that I never knew until that moment. So I wanted to know, was he able, did he care, did he want to fold this geekitude into his music? So I asked, “What has his passion for science inspir…
Peter Lynch: How to Invest Like a Pro (rare clip)
The price of a stock will follow the direction of earnings in almost every case. You can generally state if a company’s earnings go up sharply, the stock’s going to go up. If earnings go from very poor to mediocre, the stock’s probably going to rise. If t…
Waste Not, Want Not | The Great Human Race
Whoa! What is that? Look at the bottom of that slope. I see it! Is that an animal? Huh! It’s a baby bushbuck! Look, something attacked this. Oh, look at these marks! It definitely was! Definitely something bit it. It’s bloated. It is bloated. We might no…
How To Get Rich According To Bill Gates
There are a million ways to make $1,000,000. And this is how Bill Gates did it. Welcome to ALUX. Now, first of all, you need to focus on the power of feedback loops. In one of his annual letters, Bill Gates said you can achieve amazing progress if you se…