Ownership Economics
Private Jet Depreciation
Private jets lose roughly 12–15% in year one and 2–4% per year through year ten, with super-midsize and ultra-long-range aircraft holding value the best in the current market. Below is the residual curve by class, and the factors that decide where a specific aircraft lands.
Residual Value by Class
% of original delivery price retained at each year mark, assuming enrolment in engine and airframe programs and average annual utilisation (350–450 hours).
| Class | 1 yr | 3 yr | 5 yr | 7 yr | 10 yr | Note |
|---|---|---|---|---|---|---|
| Light Jet | 82% | 68% | 55% | 45% | 35% | Steepest curve — small cabin, big new-vs-used spread. |
| Midsize | 84% | 72% | 60% | 50% | 40% | Predictable curve; strong 5–8 year buyer pool. |
| Super-Midsize | 87% | 76% | 66% | 56% | 46% | Best-holding class post-2020 thanks to trans-continental utility. |
| Large / Heavy | 85% | 72% | 60% | 50% | 40% | Wide range — legacy heavy metal drops faster than modern glass cockpits. |
| Long-Range | 86% | 75% | 64% | 55% | 45% | Values held up by scarcity of newer production slots. |
| Ultra-Long-Range | 88% | 78% | 68% | 58% | 48% | Longest new-order backlogs support residuals — used G700 and Global 7500 trading at premiums to list. |
What Widens or Narrows the Curve
Engine program status
Enrolled aircraft trade 5–15% higher than non-enrolled peers at every age.
Total time vs age
Low-hour aircraft (under 300 hrs/yr average) command 3–8% premiums.
Avionics currency
FANS 1/A, ADS-B Out, CPDLC are baseline. Missing = discount + retrofit cost.
Backlog for the newest generation
When new-order lead times stretch past 3 years, late-model used values are pulled upward.
Frequently Asked Questions
How fast do private jets depreciate?
Private jets lose roughly 12–15% of value in year one and 2–4% per year thereafter for the first decade, provided they are enrolled in engine and airframe programs. After 10 years, curves flatten sharply — a well-maintained 15-year-old ultra-long-range aircraft can hold 35–45% of new value.
Which class holds value best?
Super-midsize and ultra-long-range aircraft show the strongest residuals in 2026. Super-midsize because of dominant utility for trans-continental missions, and ULR because factory order-book backlogs of 3–5 years for the G700 and Global 7500 pull used values up.
Does engine program enrolment affect depreciation?
Yes — dramatically. Aircraft on JSSI, ESP, MSP, or CorporateCare trade 5–15% higher than equivalent non-enrolled airframes at every age. Non-enrolled aircraft often become effectively unsellable past 15 years because buyers price in the full overhaul cost.
Is depreciation deductible?
In the US, business-use aircraft qualify for MACRS depreciation over 5 years, and bonus depreciation was partially restored in 2025 (40% for aircraft placed in service in 2025, phasing down through 2027). Consult tax counsel for specifics.
Why does year-one depreciation look larger than the market suggests?
The reported first-year drop reflects the spread between new list price (with negotiated adjustments) and the first resale asking price. It also captures options and completion costs that do not fully recover on resale.