Depreciation is the single largest cost of private jet ownership over a 10-year hold — almost always larger than crew, larger than maintenance, and usually larger than the original purchase price split across the years. Most buyer spreadsheets get it wrong because they assume a flat percentage. Real depreciation curves are not flat.
The shape of the curve
New large-cabin business jets follow a predictable three-phase curve:
- Year 1: 8–12% drop as the aircraft transitions from new-delivery to pre-owned. This is the steepest single-year loss in the entire ownership cycle.
- Years 2–5: 6–8% per year. The aircraft is now firmly in the pre-owned market and competes on configuration, engine program status, and total time.
- Years 6–10: 4–6% per year. The airframe is mature. Most depreciation has occurred; remaining value is increasingly tied to engine program coverage and major inspection status.
- Years 10+: 2–4% per year, flattening further. The aircraft is now valued primarily on time-since-last-major and program coverage.
Year 5, 7, and 10 benchmarks (2026)
Indicative residual values as a percentage of original delivery price, large-cabin, on engine program, no damage history:
| Aircraft | Year 5 | Year 7 | Year 10 |
|---|---|---|---|
| Gulfstream G650ER | 62–68% | 50–56% | 38–44% |
| Gulfstream G700 (early data) | 65–72% | 52–60% | TBD |
| Bombardier Global 6000 | 58–64% | 46–52% | 34–40% |
| Bombardier Global 7500 | 64–70% | 52–58% | TBD |
| Dassault Falcon 7X | 55–62% | 44–50% | 32–38% |
| Embraer Praetor 600 | 60–66% | 48–54% | 36–42% |
Ranges assume a balanced market. Tight pre-owned supply (2022–2023) pushed residuals 5–10 points above these figures; loose supply pulls them back down.
What moves residual value within the range
Four variables explain almost all the spread between two same-year aircraft of the same model:
- Engine program coverage — Rolls-Royce CorporateCare, Honeywell MSP Gold, P&W ESP. Uncovered airframes discount 5–15% even when the rest of the aircraft is perfect.
- Damage history — even fully-repaired damage discounts 3–8%. Undisclosed damage is a deal-killer.
- Total time / cycles — high-time aircraft (above category median for age) discount 5–10%.
- Configuration and interior cycle — recently refurbished interiors and current avionics (ADS-B Out, FANS 1/A+, CPDLC) protect value; aircraft due for refurb pay for it at sale.
What this means for buyers
The 8–12% year-one drop is the single best argument against buying new. A thoughtfully-acquired 3–5 year old aircraft on engine program delivers materially better 10-year economics than the same model new — typically $4M–$8M better over the hold period.
For the full ownership cost picture, see our private jet ownership cost pillar. For the buyer process itself, see how to buy a private jet.