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One of our key value-adds at EWA is helping clients navigate challenging financial decisions. Recently, some clients have been concerned about inflation and equity market declines, leading to questions about owning or renting private jets. In general, we’ve found that if you plan to use a private jet for fewer than 50 hours per year, renting is usually more cost-effective due to the high ownership expenses, including fuel and maintenance. Rental rates typically range from $5,000 to $7,000 per hour. If you have any questions or need guidance on this topic, please don’t hesitate to reach out.
One of the biggest value adds we’ve found at EWA is just being there to aid clients through a stressful financial decision. So right now, a lot of people are worried about inflation, a decline in equity markets.
We’ve had a couple of clients ask us if they should own or rent a private jet. So, Matt, tell us what we found with talking through clients in situations. Were you one of the clients worried about this decision?
I don’t know how old you are. Yeah, it’s been a big stressor for. Me the last couple of just making sure. So in general, we have had this question come up several times in the midst of health concerns with COVID and just ability to get places very conveniently and quickly.
So the typical break even that we’ve seen for owning a private jet versus renting a private jet is you need to use at least 50 hours or more. And at 50 hours we would recommend potentially looking at a fractional ownership deal.
But anything under 50 hours, we would look at renting the jet. First and foremost. A jet does have a lot of very high cost to it. And with inflation and prices fluctuating, gas prices fluctuating, especially being on the hook to have to make those payments versus if it’s just a decision if I want to use it is a big deal for flexibility and depending on net worth renting, it would make sense for most people.
So if you are looking at renting a jet, we’ve seen usually between $5000 to $7,000 an hour is what you could expect if you’re renting the jet. And then if you own the jet, to get that price lower again, you would need to use it at least more than 50 hours per year.
Any questions on this, please reach out.
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