Aircraft Depreciation Trends: A NARA Perspective

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.

Read the full post at NARA’s website.

3 thoughts on “Aircraft Depreciation Trends: A NARA Perspective

  1. Completed my emergency fund of $20k, opened and maxed out a Roth IRA, and saved enough for a newer car in cash and a 20% downpayment on a modest house this year! haven’t bought the car or the house yet, but the money is there,

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>