How to Buy a Private Jet

In 2021 alone, more than 3,700 used private jets were sold. Many new ones changed hands too. You can become part of this jet-owning crowd by following the instructions we’ll outline below. 

Private Jet Purchase Process: 12 Steps 

Buying a private jet can take anywhere from three to nine months for used aircraft or longer for new models. It’s crucial to understand what happens at each stage. Working with a professional, such as a broker, can help to streamline things.

Step 1: Assess Your Requirements 

The global business jet market is vast and anticipated to grow to $66.97 billion in 2032. There are plenty of products to choose from, and only you know what’s right for your budget and your travel plans. Research can help you uncover what’s critical to you. 

Factors to consider that might impact your choice include the following:

• Your budget: Consider how much you can spend now and how much you’re willing to spend on ongoing maintenance. 
• Travel frequency: Some people plan monthly trips, while others need to fly just a few times a year. Consider how often you must fly now and in the future. 
• Destinations: Long flights require different aircraft than short jaunts. Think about where you’ll go with your jet.
• Capacity: Some aircraft are designed for small groups of only two or three people. If you’ll take more people on your trips, you’ll need a larger jet.
• Type: Both new and used jets are available, and they’re slightly different. Consider whether you need something brand-new or if an older model will work for you.

Step 2: Conduct Research & Pre-Qualify 

Once you understand what you need from a jet, you’ll identify the aircraft category that might fit you and whether (or not) you’re willing to purchase a used model. With these details, you can do some research. 

Find out more about manufacturers and models that could meet your needs. Determine how much they might cost and whether that seems right for your budget. The internet can be a big help with this step. 

After understanding the price, speak with banks about financing. If you need to borrow money for the purchase, it’s best to solidify those plans now and get a prequalification letter to share with potential sellers. 

Step 3: Find a Private Jet Retailer 

Private jets are expensive, and it’s rare for owners to start negotiating with strangers. Typically, you need a broker to smooth the conversation between you and a potential seller. 

A reputable retailer can identify potential aircraft that can meet your requirements.

Brokers can also tackle key steps, such as the following:

• Negotiating with the seller. 
• Providing market expertise. 
• Identifying pitfalls that could ruin the sale. 
• Providing support after the sale if complications arise.

Identify several retailers and interview them until you find the perfect fit. 

Step 4: Establish a Business Relationship 

With the perfect jet retailer chosen, it’s time to enter a formal business partnership. Typically, this involves a contract. 

Your private jet retailer is a key partner in one of the most important financial transactions you might complete during your lifetime. Your contract should set the terms for your partnership in clear language you can understand. 

At this step, you should also explain exactly what you want and need in an aircraft. Share your research with your broker and ensure you both understand what you want. 

Step 5: Search for the Right Aircraft 

With a signed contract and agreement, your broker will begin the search for the right aircraft that meets your needs. A reputable retailer has strong connections and access to a large network of operators and suppliers. 

A good partner can find many more potential jets than you’re able to see as an individual. For example, they could look at jets that are advertised, but they might also find confidential listings. 

Your broker should also do homework on each aircraft that meets your criteria. That can mean asking for maintenance records, talking to the crew, and more. 

Your broker should provide you with a list of potential jets, along with recommendations about what you should buy. Together, you can choose an aircraft for the next step. 

Step 6: Craft an Agreement & Make a Deposit

Once you’ve chosen an aircraft, make your selection official with a pre-purchase agreement. This legal document works like your offer for the jet. 

Follow these steps to create your agreement:

• Identify how much the aircraft is worth. 
• Specify how much you’re willing to pay for this jet. 
• Determine whether you’ll pay in cash or with your loan. 
• Ask your broker to help you craft a contingency clause in case the deal falls through. 
• Set a reasonable deadline for the sale.

Experts say most pre-purchase agreements come with a 5% deposit to prove you’re serious about the sale. That money should go into an escrow account for safekeeping (not to the owner).

Step 7: Write a Formal Aircraft Purchase Agreement (APA) 

If your potential seller agrees with your bid, it’s time to draft a formal aircraft purchase agreement (APA). This contract will specify the steps you’ll take between now and the date of the sale. 

The primary items included in this type of contract include the following:

• The buyers and sellers involved.
• The aircraft, including its legal description. 
• The purchase price and payment terms.
• Your escrow agreement. 
• Who will perform your pre-purchase inspection. 
• When your inspection is due.
• How you’ll transfer the title from one party to another. 
• Who will pay associated taxes and fees.
• How you’ll handle any disputes that arise.
• Who is responsible for insurance while the agreement happens. 
• Where the aircraft will be delivered.

Both parties should have time to review the document before you move forward with the sale. 

Step 8: Review the Inspection 

Before the sale can move forward, the aircraft must be inspected from tip to tail. This key step ensures that the jet meets your expectations and is priced appropriately. 

A typical jet inspection involves examining the following items: 

• Documents: The jet’s logbook, maintenance data, and service bulletins should be carefully examined. 
• Aircraft: The inspector should examine the jet’s structural integrity, engine, computer systems, and interior. 
• Performance: Some inspectors perform a test flight to ensure the jet works while in the air.

Your written report should include details about all of these checks. It should also outline your potential maintenance costs. 

Step 9: Negotiate Discrepancies 

Your inspector may find issues that neither party anticipated. It happens, and it means you need to do a little more work. 

Your broker may suggest a price adjustment to give you financial freedom to make the changes yourself. Instead, you may require the owner to fix found problems before the sale moves forward. 

In worst cases, you may be required to withdraw from the deal. It’s upsetting, but it can happen. 

Step 10: Prepare Key Paperwork 

Before the sale can move into its final stages, several documents must be prepared for both parties. 

The key documents include the following:

• Title: The seller should provide a clear title and verify the aircraft’s history. 
• Registration: Your broker should ensure that documents that transfer ownership are prepared and meet FAA requirements. 
• Insurance: You should have proof that your aviation insurance begins on the date of the sale.

Step 11: Exchange Funds & Finalize the Sale

At this step, you’ll pay your agreed funds into your escrow account as specified in your sale agreement. You’ll also sign all required documents that finalize the sale.

Your seller will take possession of the funds and sign similar documents. At this point, the ownership of the aircraft officially moves into your hands. 

Step 12: Take Possession

At the end of the signing, the aircraft is ready to become part of your fleet. In most cases, the seller will deliver the jet to an airfield you choose, as specified in your purchase agreement. 

It’s your responsibility to arrange for pilot training and all other operational logistics. Some brokers will help you with this step, including hiring a crew for you. 

Your broker should also ensure that you comply with all applicable tax and regulatory requirements at this step. 

Get Started With Element Aviation

At Element Aviation, we have decades of experience helping sell and buy aircraft. Contact us today to learn more about how we can help you find the perfect aircraft.