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

What’s the most effective way to offset the depreciation of your jet?


less than 1m read
·Nov 3, 2024

Processing might take a few minutes. Refresh later.

So what's kind of the sweet spot in terms of how old the jet is where someone else is taking the depreciation and the big hit for you, but you're not going to be stuck with something no one wants in 5 to 10 years?

No, it's a great question, Preo, because the game changed during COVID. These are depreciating assets; they go down in price every single year. But in the last two years, they went up, which is an anomaly that was never seen in the history of the year. Bicycles, motorcycles, everything.

But now it's starting to come back down, and we probably, unless we have another pandemic or something, we're not going to see that happen again. So normally, the first 5 years of an airplane's age probably lose about 40% of the airplane value, and the warranty expires after 5 years.

But to give an example, that airplane might drop after 5 years old because it doesn't have the warranty. It's really a stupid reason for it because let's say the difference in price might be $3 or $4 million instead of 25; it's 20.

When you come off the warranty, you say, “Okay, you're going to add $300,000 a year for maintenance that was not going to be covered on warranty.” So, what you're going to say is, “$5 million on the purchase price, who cares if you're paying $300,000 a year for maintenance?” So...

More Articles

View All
This is why I'll NEVER flip houses...
Lots of you guys, it’s Graham here. So, as many of you know, I’ve been working full-time in real estate since 2008 as a real estate agent, which means I’m kind of getting old now. Now, if you’re doing that, I’ve helped my own clients flip properties for a…
Why The Middle Class Is Financially Ruined - AGAIN
What’s up, Graham? It’s guys here. So, even though this channel focuses around investing, building wealth, and personal finance, every now and then, I come across an article that we have to talk about because it’s becoming more and more apparent that the …
Le Chȃtelier’s principle: Changing temperature | Equilibrium | AP Chemistry | Khan Academy
Le Chatelier’s principle says if a stress is applied to a reaction at equilibrium, the net reaction goes in the direction that relieves the stress. One possible stress is to change the temperature of the reaction at equilibrium. As an example, let’s look …
Paul Giamatti on Human Engineering | Breakthrough
I’m Paul Gatti, and I am directing and doing the interviewing in an episode of Breakthrough called “More Than Human.” It was out of left field for me. I’ve obviously never done anything like this, but a guy that I know was helping produce at David Jacobso…
Using probability to make fair decisions
We’re told that Roberto and Jocelyn decide to roll a pair of fair six-sided dice to determine who has to dust their apartment. If the sum is seven, then Roberto will dust. If the sum is 10 or 11, then Jocelyn will dust. If the sum is anything else, they’l…
Exclusive: Russian Foreign Minister Sergey Lavrov Describes the War With the US and How to End It
Minister Le, thank you for doing this. Um, do you believe the United States and Russia are at war with each other right now? I wouldn’t say so, and uh, in any case, this is not what we want. Uh, we would like to have normal relations with all our neighbo…