15 Reasons NOT To Buy a Private Jet (Even If You are Rich as Heck)

They say the sky is the limit. Well, in the case of luxury life and stylish travel, even the sky is not the limit. On earth, wealthy people buy sports cars such as Ferrari, Aston Martin and Mercedes. The world's most expensive sailboats, exclusive yachts and cruise ships are built on the water. In the sky, buying a private jet completes the luxury puzzle.

Need a private jet?

However, the first question to ask yourself before buying a private jet is why. Why do you want to own a private jet? At first it may seem like the optimal way to travel, but you have no idea what is hidden behind the luxurious curtain. Of course, this does not mean that the dream of an airplane should remain unrealizable. 

But if you read all 15 reasons outlined in this article and still dream of your own plane, then go ahead and do it. However, if the worm of doubt creeps in already at the first points, then know that this is not for you. So, fasten your seat belts and hold on as we chase your luxurious dreams through the turbulence of reality.

Equipment should not be idle. 

First, let's analyze your answer to the question why you want to buy a private jet . Besides the fact that you need the privilege of having luxury, is there really a need and a need for it? The initial goal of buying any vehicle is directly transportation, the ability to deliver from point A to point B. Therefore, if you do not have an urgent need to move between remote points of the planet as soon as possible, then the desire to have a business jet is probably far-fetched.

If you plan to use it on the occasion of the thirteenth full moon, then the plane runs the risk of standing in the hangar for most of its life. However, it was not built for this. The jet must fly.

The simplest solution in this case is to rent the plane when you are not using it. But can you trust those who will charter the jet? These people can damage the leather upholstery of the chairs or spill the drink on the luxurious carpet and leave stains. Are you ready to deal with such consequences? Therefore, if you do not often have to travel long distances, then your own plane will not become an essential item. There are other ways to experience luxury without problematic consequences. 

Even the rich and famous prefer to charter a plane. 

Yes, we all love to travel, and few people can refuse a stylish trip. Owning a private jet means you don't have to buy tickets, go through pre-flight check-ups, queue up to board, or wait for a flight attendant to serve other passengers.

But look around. How many people own private jets? Compare this to the number of millionaires in the world right now. You see, even the rich and famous would rather rent a plane than buy it privately. The highest paid movie stars, politicians and Formula 1 racers don't buy jets; even taking into account the fact that their lifestyle and field of activity involve constant movement, renting an airplane remains the best way out. And the point is not that they cannot afford such expenses - they can, they just understand that the purchase will cost them much more than the direct cost of the liner. We will discuss the costs in the following paragraphs.

Who will you travel with?

Unlike Hollywood stars, you are unlikely to be surrounded by equally rich and famous friends, and long flights will seem even more boring and tiring without good company. Especially when your phone ends up charging or an interesting book comes to an end. Situations like this can be frustrating if you are traveling alone in a private jet. The entire flight will have to while away in a dream. Does this sound funny to you? Likewise, one could sleep in an economy class seat on a regular flight. It would be much cheaper.

Private jets, even the smallest ones, have more than one seat. So, unless you are a celebrity who travels with their manager, bodyguard and personal assistant, you don't need an entire plane just for yourself. The most sensible decision would be to purchase the best possible ticket for a regular commercial flight. There you will be well served and you will receive the maximum level of comfort. You don't have to worry about spending more money than you should have. If you're looking to take yourself to the next level of luxury, it's always possible to charter a private jet and fly with pleasant company to any part of the world.

Traveling with friends will cost even more. 

Reading the previous paragraph, you probably thought that it would be great to fly with friends in a private jet. Of course it's fun. And also - it's expensive. You don't want your friends to starve at 6,000 meters, do you? And if there is a bottle of expensive wine on board, then you will have to share every sip.

In another scenario, you will also have to fork out. Let's say you invite several of your friends on board. Are you asking them to share the costs? If so, then this is probably the last time they fly with you. But if not, then you ultimately let them hitchhike: you provide them with transport, they give you company and conversations. It will certainly cost even more.

In the end, you decide to fly alone, and we go back to the previous point why you should think twice about buying a private jet .

If you don't believe me, ask Lewis Hamilton, a former F1 world champion who owns a private jet. But all other riders prefer to rent a business jet rather than ask to board Lewis. Why? Reflect at your leisure, and we move on to the next point.

Have you ever heard of a luxury tax?

Now let's get down to business. As mentioned earlier, purchasing a private jet will cost you more than what you would spend directly on purchasing. There are other costs that will fall on your shoulders. And the main cost item is the luxury tax, which is officially applied to citizens of some countries. So, if you are a citizen of France, the USA, Australia, Mexico or several other countries - congratulations: these states impose a high tax on their wealthy citizens on the possession of luxury goods. For other countries, it's just a matter of time. The luxury tax rate varies from country to country and is typically 5–30% of the value of the luxury item itself.

To paint the picture, imagine buying a used Gulfstream G280 jet (2014) for $15 million and paying an additional $1.5 million in 10 percent tax.

In addition, some countries, such as Italy, apply a luxury tax even to the passengers of such liners. So, if you fly from New York to Rome on a private jet, you will have to pay an additional € 200 in tax. The same amount will have to be paid for the return flight. When choosing a regular flight, passengers are spared such expenses.

Insurance is another cost item. 

In addition to the mandatory tax, insurance is another necessary expense item. Having saved on insurance, you can be left without anything at all. Especially when it comes to luxury items like a private jet . It is more important to insure an aircraft than to take out an insurance policy for any other vehicle. It may seem that flying has fewer risks than driving a sports car, since the rules for flying are orders of magnitude stricter than those of the road. However, no rules and regulations can insure against the risk of damage.

As with any vehicle, aircraft components and parts can break down and become unusable. Insurance will cover incidental expenses for which you cannot be held responsible. In addition, like any transport, an aircraft can get into an accident. Aviation accidents are more risky than other movements, not only in terms of passenger safety, but also in terms of physical damage. How much is insurance? On average, insurance companies charge about 0.3% of the value of the ship's hull. So for a $ 10 million jet, the annual insurance would be $30,000. Expensive, isn't it? For this money, you can buy a good new car every year.

Maintenance costs are very high. 

Expensive equipment needs exclusive maintenance. And, unfortunately, the exclusive service comes with a high price tag. But you have no other options. You must keep your business jet in top shape. You don't want to risk your precious life flying on a faulty plane, do you?

Therefore, it is necessary to adhere strictly to the service schedule. And this is not only a matter of your personal safety, but also of the lives of other people. That is why deviations from the schedule of repairs and maintenance entails the possibility of losing your flight license. And what good is an airplane if it can't fly?

Even if you do not use the aircraft very often or do not use it at all, some parts still need to be replaced. Yes, it is a must. Some of them need to be changed quarterly. In addition, a service based on an hourly flight schedule is required. This means that expenses await you as long as you have a private jet .

On average, private jet owners spend at least $100,000 a year just to cover maintenance costs. This does not include refurbishment of parts and additional equipment. This is something that cannot be put aside. Otherwise, you risk your license, or worse, your own life.

Who will work for you?

If you find it takes a lot of time and effort to find a driver, wait until you are faced with the need to find the right pilot for your private jet. Hiring a pilot on your own requires an understanding of all flight and pre-flight needs. In particular, his experience, license, environment and mental state will have to be checked. And this is just the tip of the iceberg! Experienced pilots are much more expensive than newbies. This means that the cost of maintaining a private jet is on the rise again.

How much you will spend on a pilot and navigator depends on how often and how far you will fly. Private jet commanders earn about $ 200,000 a year, provided they fly on schedule and only within one country. If you are looking for a pilot who will fly the liner at any time and at any distance, then you should set aside a budget of $ 300,000 per year. And if you prefer to have a flight crew on board that can meet any need, you will have to budget for an additional $50,000. This is where luxury meets service and safety. And as a result - additional costs for the opportunity to show off.

The need to get a lot of permits and do different paperwork. 

If a private jet could be stopped by road inspection officers, they would ask for a more substantial package of documents than the rights and documents for the vehicle. Flight order and safety are of the utmost importance. Every country is taking dramatic steps in policy development, policy and air traffic control. That is why flying from one city to another is not as easy as covering the same distance by car.

You do not need a driver's license to own a private jet. But as soon as you are ready to fly, then paperwork begins to boil. The captain and navigator are not the only people who need a license. As mentioned earlier, a business jet must also have flight clearance. This is a security certificate, but that's not all. First, you need the credentials of the airport where the ship will be based and repaired. If you are going to leave the country, you also need permission. And insurance. In addition to this, registration of the aircraft is required.

Without this data, your dream of comfortable flying can turn into a bureaucratic nightmare in a matter of minutes. Without them, you will face colossal fines, or even confiscation of the liner.

It's not the same as owning a luxury sports car. 

If you are thinking of buying a private jet to top up your asset simply because a sports car is no longer enough, then forget it. Plane ownership has nothing to do with a sports car. Neighbors who pass by an open garage may admire your posh car, but the only people who pass by the hangar where your plane is parked will be the airport workers and the crew. If you do not take selfies and publish photos of the business jet on social networks, then the crew will remain your only audience.

A private jet does not give you the satisfaction of a luxury car. Neighbors, for example, have a chance to see you at the wheel of a brand new Ferrari, but the new plane is unlikely to be noticed. So if the urge to show off is what you're really looking for, then buying a personal liner isn't for you. Maybe you just need to buy a more upmarket car? It doesn't have to be expensive, the main thing is the image. 

And there are many options to choose from here. For example, the fastest electric car NIO EP9, released in limited quantities. Or, you can start a hunt for vintage cars like Ferrari, Aston Martin or Porsche, which are up to $38 million at auctions. The choice is yours.

Let's paint a picture of the cost of each departure. 

So you've learned about the costs of owning a private jet in addition to the direct costs of purchasing it. Have you got an idea of ​​how much you will have to spend per year just to keep the ship safe and sound? Now let's paint a more concrete picture: how much will it cost you to fly on an airplane that you own?

The biggest cost of operating an aircraft is fuel. Of course, its consumption depends on the type of aircraft you want to purchase. The smaller and lighter the plane, the less fuel it will burn. For example, the 8-seater Cessna Citation X airliner consumes about 1400 liters of fuel per hour of flight, which means that only about $ 2000 per hour will have to be spent on fuel. 

Even the more compact four-seater Cirrus Vision SF50 will cost $ 700 per flight hour. Now let's compare these costs with the cost of a scheduled commercial airline ticket. A first class ticket from New York to Washington will cost about $400. This is almost half the price of flying on the smallest and least luxurious plane.

Not using a plane does not mean not paying for it.

It has already been mentioned that the jet is not intended to be idle in the hangar. The plane must fly. And this is one of the reasons. If you think downtime is cheaper, you are wrong. For example, you already know that some parts need to be changed on a regular basis depending on the number of flight hours. So, in the sky or on the ground, a private jet is very expensive.

Even before the need for repairs arises, the first thing you, as the owner, need to decide is where you plan to leave your aircraft. Unless you own a huge garage with direct access to the runway, then you need to rent a place in the airport hangar. Some air harbors practice outdoor aircraft parking. It's much cheaper than a public or private hangar, and only costs about $ 50 a month. But do you think it's a wise decision to leave a luxury liner exposed to extreme weather conditions without proper protection?

Depending on the size of the hangar and its location, the rental price may vary, but on average, the rental rate is about $ 500 per month. And this is even more than the average resident of a European metropolis pays for rent for himself and his family.

Unless you are a global star, it will be difficult for you to resell the plane.

When you buy a sports car and then decide to sell it to buy a better car, the deal is not a problem. If you have taken good care of the car, then at least you have preserved its value, which will even allow you to sell it for a profit. But when it comes to a private jet, these rules don't work.

Yes, a classic plane can be more valuable than its purchase price. But for this you will have to maintain it for decades and pay for maintenance. Now you should be well aware that maintaining an aircraft in working order is very expensive. So unless you plan on caring for a private jet for a few years until it becomes a classic and rarity, this scenario is not for you.

Some celebrities and billionaires are successful in selling their private jets because their names speak for themselves. Unfortunately, little-known, albeit very wealthy people do not have this privilege. This will add your jet to the list of regular used aircraft for sale.

In the end, the cost of maintaining the aircraft will constantly increase and you will have to sell the aircraft at a deep discount. In any case, you will lose money. The question is: is a luxury vehicle worth all the trouble and hassle?

This is not a form of investment. 

We have already discussed how difficult the sale of a used private jet can be. And its value is likely to fall in comparison with the purchase price. Therefore, you should know that a private jet is not an asset and buying it is not an investment.

You've probably read somewhere about this type of investment. But get it right: investing in aviation means buying an old ship, rebuilding it and bringing it to a more valuable asset. You can then either resell it, add to your collection, or organize commercial flights. This is an investment. But buying a private jet to fly the world occasionally and then selling it as soon as you get tired of it is not an investment. You will definitely lose money. Even if you manage to sell it for more than you bought it, it will not cover the operating and maintenance costs incurred.

With $ 10 million in hand, it is better to invest these funds in another area, for example, in real estate. The value of the land continues to rise. With a little patience, you will eventually be able to multiply your capital.

A private jet is a luxury only for very very very important people. 

Let's face it, a private jet is not a luxury for everyone. Even if you are able to afford such a waste of money, it does not mean that you should do so. A private jet owner must meet the following requirements:

* Can afford to lose money (for taxes, insurance, licenses, maintenance and aircraft parking);

* Fly regularly at least twice a week (not only between cities, but possibly intercontinental flights);

* Work according to irregular schedules (regular flight schedules may not coincide with his travel schedule);

* Have a desire to work with documentation (not only pay, but also understand and be responsible for a package of documents);

* Always be surrounded by people, because he is a very important person (hence the need for space when traveling);

* It cannot be alone, at the airport without security, because he is very popular (he is attacked by a horde of fans or haters);

Famous enough for people to want to buy something from him.

So, do you meet any of these criteria? Still looking to buy a private jet ?