If you own a business and you have to travel a lot for meetings, then getting a private jet is a very good idea. But when it comes to stuff like this, you usually have to options. You can either buy one and have it yourself, or you can lease one if you want to and use it only when you need it. Picking the right option is hard because it all comes down to the situation and the needs that you may have here.
Buying a business jet
When you buy a business jet, you have to keep in mind that this is a sizeable investment. It can cost you a whole lot of money, anywhere from $3 million and up to $90 million or sometimes even more. The size of the jet will also increase or decrease the price as well. The private jet will offer a range of up to 3000 miles without refueling and the larger models can go up to 7000 miles or more. The number of passengers and items on board will obviously increase or decrease that amount. But yes, numbers will differ and it’s very important to know what you are getting into here and how you can tackle the process in a meaningful manner so it works for you.
The challenge that comes from buying a jet aside from the initial purchase is that you also have to hire a crew and pay for their expenses. Then you also have to buy fuel and so on. It’s one of the things to consider that the aircraft depreciates too, new models are coming and the more you use it the less value you will have here. Combined with the crew costs, this will be quite the financial sinkhole unless you use it often of course.
In the buying vs. leasing debate you will notice that leasing is better because you don’t have to focus on a long-term financial commitment. You just lease the unit that you want and that’s all there is to it. You just have to pay for the trip that you want to take with it and that’s all there is to it. The owners of those planes rent these with the idea of generating revenue, as we said above owning such a plane is expensive so they have to rent it to make some of the money back. In the case of leasing, you have the crew and any expenses already paid for via the lease arrangement. So you just have to relax and enjoy the ride.
Which one is the better option?
That comes down to you and how often you need a private jet. If you’re a high tier business owner that needs to travel a lot, getting a private jet does make a lot of sense. On the other hand however, if you just need it once or twice per year, then it doesn’t make sense to buy one as you can go with the lease option. You just have to figure out what approach works for you the most and go from there!