“I want my G650 now … and I am willing to pay your price!” said one billionaire to another.
The super affluent crowd is flying higher than ever and taking their moneymaking ways to a higher altitude. The latest power game is the flipping of new and larger private jets, which are scarcely available these days.
Patience is a virtue that for some wealthy people is paying off mightily and costing others millions for their lack thereof. CNBC’s Robert Frank reports that some super-high-net worth individuals are selling the newest delivered business jets for millions more than they originally paid for the aircraft. A nice profit is being made without doing anything but agreeing to sell to another affluent party.
The reasoning behind the nascent popup profit center is the waiting period of more than three years before the new, larger-style business jet is delivered. Since the "buy now and wait" proposition is not acceptable, those unwilling to wait are willing to pay a premium to own it now.
Formula One mogul Bernie Ecclestone paid $64.5 million for his Gulfstream G650 years ago. He recently sold it to an Asian businessman that wanted his G650 now for $72 million. A nearly 12% ROI for doing nothing more than completing paperwork is hard deal to resist. CNBC reports that similar deals are in the works.
…But large-cabin planes are a hot commodity among billionaires and global companies. With their long range and ample cabins, they can carry more passengers over longer distances and in greater comfort. The G650, with a base price of $64.5 million, is the king of the large-cabin private jets, with a range of well over 7,000 miles and a maximum speed of Mach 0.925.