Used vs New Aircraft: Which Offers Better Value?

Deciding between used vs new aircraft significantly impacts total ownership costs and value retention. Understanding depreciation, warranties, financing, and long-term expenses helps determine the best choice for your budget.

Purchase Price Comparison

New Aircraft Costs (2025):

• Cessna 172 Skyhawk: $450,000-$550,000
• Cirrus SR22 G6: $850,000-$1,000,000
• Piper Archer LX: $400,000-$480,000
• Diamond DA40 NG: $500,000-$600,000

Used Aircraft Costs (10-15 years old):

• Cessna 172 (2010-2015): $180,000-$280,000
• Cirrus SR22 (2010-2015): $300,000-$500,000
• Piper Archer (2010-2015): $150,000-$240,000
• Diamond DA40 (2010-2015): $220,000-$320,000
• Savings: 40-60% vs new prices

Depreciation Analysis

New Aircraft Depreciation:

• Year 1: 15-20% depreciation
• Years 2-5: 8-12% annually
• Years 6-10: 5-8% annually
• 10-year total: 50-65% depreciation
• Example: $500K new → $175K-$250K after 10 years

Used Aircraft Depreciation:

• Slower depreciation rate than new
• 10-15 year old: 3-5% annually
• Well-maintained aircraft hold value better
• Avionics upgrades can increase value

Break-Even Analysis:

• New aircraft loses $25K-$100K in year one alone
• Used aircraft avoids steep initial depreciation
• 10-year old aircraft already absorbed 50-60% depreciation

Financing Comparison

New Aircraft Financing:

• Rates: 6.5-8.5% typically
• Terms: Up to 20 years
• Down payment: 10-20%
• Approval: Easier with factory warranties

Used Aircraft Financing:

• Rates: 7.0-9.5% (0.5-1% higher)
• Terms: 15-20 years (depends on age)
• Down payment: 15-25%
• Restrictions: Pre-1985 aircraft limited options

Warranty and Support

New Aircraft Advantages:

• Factory warranty: 1-2 years comprehensive
• Engine warranty: 5-7 years or TBO
• Avionics warranty: 2-3 years
• Factory support: Direct manufacturer assistance
• Latest technology: Modern avionics and safety features

Used Aircraft Reality:

• No factory warranty (as-is purchase)
• Unknown maintenance history risk
• May need immediate repairs/upgrades
• Older avionics may need updating
• Pre-buy inspection critical

Maintenance Cost Comparison

New Aircraft First 5 Years:

• Annual inspections: $2,000-$3,500
• Major items: Minimal (under warranty)
• Unexpected repairs: Rare
• Total annual maintenance: $3,000-$6,000

Used Aircraft (10-15 years old):

• Annual inspections: $2,500-$4,500
• Major items: More frequent (tires, batteries, etc.)
• Unexpected repairs: $2,000-$5,000/year
• Total annual maintenance: $5,000-$12,000
• Approaching engine TBO: Reserve $15-$25/hour

Total Cost of Ownership (10 Years)

New Cessna 172 ($500,000):

• Purchase: $500,000
• Financing interest (20% down, 7%, 20yr): ~$280,000
• Insurance (10 years): $25,000
• Hangar (10 years): $60,000
• Maintenance (10 years): $45,000
• Total spent: $910,000
• Resale value: $200,000
• Net cost: $710,000

Used Cessna 172 ($200,000, 10 years old):

• Purchase: $200,000
• Financing interest (20% down, 8%, 15yr): ~$85,000
• Insurance (10 years): $22,000
• Hangar (10 years): $60,000
• Maintenance (10 years): $80,000
• Engine overhaul: $30,000
• Total spent: $477,000
• Resale value: $120,000
• Net cost: $357,000
• Savings vs new: $353,000 (50%)

Pros of Buying New

• Factory warranty and support
• Latest avionics and safety features
• No unknown history concerns
• Easier financing approval
• Customization options from factory
• Pride of ownership
• Lower maintenance first 5-7 years

Pros of Buying Used

• 40-60% lower purchase price
• Avoid steep initial depreciation
• More aircraft for same budget
• Proven reliability (if well-maintained)
• May include valuable upgrades already installed
• Better value if keeping long-term

Decision Framework

Buy New When:

• Budget allows premium pricing
• Want latest technology and features
• Prefer warranty protection
• Plan to trade up in 5-7 years
• Business use for tax deductions
• Custom specifications important

Buy Used When:

• Budget-conscious buyer
• Plan long-term ownership (10+ years)
• Willing to accept older avionics
• Comfortable with pre-buy inspection process
• Want more capability for same money
• First aircraft purchase

Frequently Asked Questions

How much cheaper is used vs new aircraft?

Used aircraft 10-15 years old cost 40-60% less than new equivalents. Example: New Cessna 172 $500K vs 2010-2015 model $180K-$280K. Initial savings significant but consider higher maintenance costs and depreciation already absorbed.

Do used aircraft depreciate slower than new?

Yes. New aircraft lose 15-20% first year and 50-65% over 10 years. Used aircraft (10-15 years old) depreciate 3-5% annually. Much of depreciation already occurred, so value more stable going forward.

Is it better to buy new or used aircraft?

Depends on budget and priorities. New offers warranty, latest technology, easier financing. Used provides 40-60% savings, avoids steep depreciation, offers more capability per dollar. Used better value for long-term ownership; new better for short-term with warranty needs.

What are hidden costs of used aircraft?

Pre-buy inspection ($2,000-$5,000), immediate repairs/upgrades ($5,000-$25,000), higher insurance initially, potential engine overhaul ($25,000-$40,000), avionics upgrades ($10,000-$50,000), unknown maintenance history risks. Budget 10-20% of purchase price for first-year surprises.

Can you finance older used aircraft?

Yes, but with limitations. Most lenders finance aircraft to 30-40 years old maximum. Pre-1985 aircraft have limited options. Expect higher rates (7.5-9.5%) and shorter terms (10-15 years) vs new aircraft. Down payment typically 20-30% for older aircraft.