The new smaller business aircraft manufactured from the 1980s up to 2007 have experienced very predictable depreciation. Historically, it has been in the neighborhood of 5 to 10% a year, down to where an aircraft reached a certain value, perhaps 60-70% of its original purchase price.
And then in three to five years the aircraft would start appreciating again – due to replacement costs being higher on the same airplanes. A buyer could get a five-year-or-older airplane with relative certainty that it would maintain its value. Consequently, the real cost of flying the aircraft would be fuel, insurance and maintaining it properly. Buyers could rest assured that they were going to recoup 75% worst case, or as much as 125% of their investment when selling.