New vs Used Aircraft: Complete Financial Comparison
Analyze the financial implications of buying new versus used aircraft and make an informed decision.
The Case for New Aircraft
Advantages
- ✓ Full manufacturer warranty (7-10 years typically)
- ✓ Latest avionics and technology
- ✓ Predictable maintenance costs
- ✓ Modern safety features
- ✓ Financing may be easier
Disadvantages
- ✗ High initial cost ($400K-$3M+)
- ✗ Steep depreciation (15-25% year 1)
- ✗ Long wait times (6-12 months)
- ✗ Custom options add cost
- ✗ Limited resale options initially
The Case for Used Aircraft
Advantages
- ✓ Lower purchase price (50-70% less)
- ✓ Slower depreciation after 5 years
- ✓ Immediate delivery
- ✓ Known maintenance history
- ✓ Strong resale market
Disadvantages
- ✗ No warranty (or limited)
- ✗ Unknown service history
- ✗ Higher maintenance risk
- ✗ Older avionics/technology
- ✗ Pre-purchase inspection required
Cost Comparison: Cessna 172 Example
10-Year Ownership Analysis:
| Cost Item | New Aircraft | Used Aircraft (5 yrs old) |
|---|---|---|
| Purchase Price | $400,000 | $200,000 |
| Down Payment (20%) | $80,000 | $40,000 |
| Loan Amount | $320,000 | $160,000 |
| Monthly Payment (5.5%, 15 yrs) | $2,700 | $1,350 |
| 10-Year Maintenance | $25,000 | $45,000 |
| Insurance (10 years) | $95,000 | $85,000 |
| Hangar (10 years) | $480,000 | $480,000 |
| Resale Value (after 10 yrs) | $150,000 | $100,000 |
| TOTAL 10-YEAR COST | $987,700 | $810,350 |
Bottom Line
For a 10-year ownership period, the used aircraft is approximately $177,350 cheaper, despite potentially higher maintenance costs. The lower purchase price and financing amount make up for additional maintenance expenses.
Depreciation Curves
Aircraft depreciation follows a predictable pattern:
- Year 1: 15-25% depreciation (steepest)
- Years 2-5: 3-7% annual depreciation
- Years 5+: 2-4% annual depreciation (stabilizes)
Which Should You Buy?
Buy NEW if:
- • Budget allows
- • Want latest technology
- • Prefer warranty coverage
- • Plan long-term ownership (20+ years)
Buy USED if:
- • Budget-conscious
- • Want immediate delivery
- • Can handle repairs
- • Planning 5-10 year ownership
Ready to Finance Your Aircraft?
Whether new or used, we can help you find competitive financing.