Is Buying A New Aircraft Your Best Option?

There is a continuous debate between whether to buy aircrafts on the pre-owned market, or whether to opt for buying a new aircraft that is for sale by the manufacturers. When looking at pre-owned aircrafts, one has to differentiate between the newer, 0 to 10 year old models and those aircraft older than 15 years.

The debate around aircrafts for sale, does not really take this difference into account. If you look at the later model aircrafts on the secondary market, a debate is pointless.

The later model aircrafts are equipped with most, if not all, the bells and whistles that the new aircrafts come with. There are effectively only three real differences between aircrafts for sale by the manufacturer and aircrafts for sale on the secondary market. These are price, warranty and psychology.

Price: When comparing price between the latest Cessna 208 Grand Caravan model and the new aircraft model, there is a price difference of $140,000. This is substantial considering that there is no real difference between these two aircrafts.

Warranty: The 2004 model has just gone out of warranty. The typical warranty on new Cessna is two years. One should bear in mind though, that the older aircraft will have had its teething problems resolved and that chances are minimal for major mechanical disasters.

Psychology: Profiling the buyers of pre-owned and new aircraft, you find that it is the old pilots that mostly buy aircrafts on the secondary market.

Newer pilots, on the other hand, mostly buy new aircrafts. Perhaps it is their relative inexperience, perhaps it is the smell of a new aircraft or perhaps it is simply a lack of understanding of the pre-owned aircraft market.

In my humble opinion, buying an aircraft for sale on the pre-owned market is the smart thing to do provided that you don’t take shortcuts and that you thoroughly check, inspect and test the pre-owned aircraft.

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