December 16, 2021
Should I Refurbish or Sell My Business Jet?
If It’s Time to Say Goodbye, List it on a Reputable Website of Private Jets for Sale
In the business world, important decisions hinge on a cost-benefit analysis. No doubt, you conducted one before purchasing a used private jet, and you likely do the same each time you need to make a choice with regard to maintenance, repair, refurbishment, or replacement.
As fleets of business jets age, aircraft operations managers must evaluate how to invest money to take care of each aircraft or whether to recoup some of the original purchase price by selling.
Regardless of what the lynchpin of your decision is, be sure to consider these factors before arriving at your conclusion.
Will Your Return on Investment Be More Than 20 Percent of Your Jet’s Value?
There’s documented proof that aircraft cabin refurbishment can increase a used private jet’s value by about 20 percent, a number that doesn’t take into consideration the value of a modernized avionics suite.
But the perfect-looking cabin helps buyers imagine how their team could actually enjoy traveling aboard the company jet, just like a professionally-staged house sells better, too.
To determine whether the cost of a refurbishment is worth it, or if you should buy a different preowned jet for sale, start with an appraisal of your business jet in its current condition. Understanding its value will allow you to compare the cost between the two options, ensuring you account for the useful life of your current aircraft and all fees associated with jet purchase.
Do You Need Features Your Current Business Jet Cannot Provide?
There’s a reason certain light and midsize jets are labeled “entry level.” Most business jet owners don’t stick with their first jet for life. They upgrade to a newer, larger model to keep up with their ever-changing business needs.
Unless you have a compelling reason for starting your jet ownership with a large jet like the Bombardier Global 6000, you’ll probably start off much smaller, with a Cessna Citation Sovereign or similar.
Although the Sovereign is more than capable of carrying your small team of executives, it isn’t as replete with amenities or fine finishes as the Bombardier, nor can it fly as far in a single trip. As your team grows and you need more seats, you’ll need to upgrade to a larger aircraft, and as your company becomes more of an industry superpower, you’ll want to reflect that in the used private jet you purchase.
If you need additional seating, a private stateroom, a galley with adequate space for preparing gourmet meals, or even a second lavatory, you won’t find the square footage in a light jet to complete your wish list.
And while you may get more money from selling your used private jet as-is, the cost-benefit analysis is still necessary to determine whether certain repairs, maintenance, or upgrades are worth it before listing your private jet for sale on AircraftExchange.com through an International Aircraft Dealers Association Accredited Dealer.
Do I Need a Second Used Private Jet?
Perhaps the question isn’t whether you need more cabin space, but whether you could simultaneously send two sets of executives to two meetings in two different locations. In this case, your cost-benefit analysis should focus on whether it’s financially feasible and beneficial to purchase a second private jet for sale to build a fleet of business jets.
Remember that a cost-benefit analysis is not going to show your business directly increasing profits as a result of owning a used private jet. Rather, your reasoning for conducting the cost-benefit analysis is to identify whether jet ownership presents an added value to your shareholders.
To understand the correlation between shareholder value and a private aviation operation, determine the drivers that measure how well your organization is growing through use of assets and resources. Is executive productivity of utmost importance? Does speed of travel or a sense of urgency in response to market opportunity affect business growth?
You may find that an additional jet in your fleet is more of a value to shareholders than a jet card or traveling on commercial airlines.
Is Now a Good Time to Buy a Private Jet for Sale?
If you’ve determined that refurbishment is not an option and your business needs a second aircraft, or if you suspect that you will within the next few years, evaluate the timing of your purchase. Much like the housing market, preowned jets for sale bend to the will of supply and demand and inflation.
You may find that, if you can wait, you’ll get a much better deal in six months. Or, if you’re in desperate need of an additional jet, you’ll start on the exploration phase of your aircraft purchase process. Remember that it takes about a year at a minimum to complete the purchase of a business jet. Proactivity, rather than reactivity, will serve you well.
Where Can I Get Help with Aircraft Refurbishment or Business Jet Sales?
In the private aviation industry, there’s a group you can trust to do business as ethically as possible: the International Aircraft Dealers Association (IADA).
If you’re looking to buy or sell a used private jet, begin by working with an IADA Accredited Dealer, who will help you navigate the complexities of each process.
And if you need help locating a trustworthy appraiser or finding the right company for refurbishment, an IADA Accredited Dealer can help you once again, by recommending one of many organizations they’ve built strong business relationships with over the years.
There’s no time for hesitation. It’s time to take the next step. Choose from these action items to proceed: