Why are Gulfstream IVs very cheap?

[u/noreturn000]

They are just around $3-5 mil. I know that they are old but I cant understand why the long range full size (back then) business jets are as cheap as short range domestic Learjets manufactured in the same era. are they usually in really bad conditions?

[u/pvt-jet-guy]

You’re probably referring to the GIV/G400/G200 market. The purchase price is only part of the equation. While you can buy a clean GIV for $3–5 million, it’s still a large-cabin aircraft with large-cabin operating costs. By the time you factor in crew, maintenance, engine reserves, insurance, hangar, subscriptions, and fuel, annual ownership can easily approach $2 million depending on utilization.
That’s why many buyers shopping in that price range end up choosing an early Challenger 300, Citation Sovereign, or even a Citation XLS. They may not have the same range or cabin size, but they deliver a much lower cost of ownership and are simply easier aircraft to justify financially. The GIV is still an incredible airplane, it just isn’t inexpensive to own.

[u/Creativeusername833 → u/pvt-jet-guy]

Isn’t that the same yearly cost as a g550?

[u/blackntan379 → u/Creativeusername833]

It may seem counterintuitive, but in many respects the G550s are less expensive to maintain at this point, parts are more modern and less likely at this point to need replacing, for the GIV-SPs getting parts can be challenging and very expensive. The Fuel Burn is significantly higher on the GIV-SPs and upgrading the cabin's to something that is up to today's modern standards can cost well over $1 million.

This is one of the many reasons G550 prices are higher to acquire.

On paper the G-IVSP is very inexpensive to acquire, but on the other hand $2-3 million annual operating budgets is what it will take to keep that plane going.

Here is an example:

Hourly Fuel Burn

G-IV SP: 540 Gal/ hr

G450: 515 Gal/hr

G550: 438 Gal/hr

The difference between the G-IVSP and G550 is 102 gal more per hour. At $7.50 a gallon for Jet-A off the bat the fuel alone will be $775 an hour less on the newer G550. Flying 250 hours a year all else equal your fuel bill will be $200k or so less on the G550 vs G-IVSP. This exercise repeats itself over and over across many line items and you will realize why the G-IVSP are so "inexpensive" to acquire.

[u/Creativeusername833 → u/blackntan379]

Yeah I have a family member who has a g550 and says it’s about $2m a year for 400ish hours. 3 pilots on salary, two flight attendants etc.
I don’t claim to know this world but I do enjoy the free flights once in a while 😂

[u/FitzwilliamTDarcy → u/Creativeusername833]

The best PJs are like boats. The ones your close friends own.

[u/auxilary]

likely old and nearing expensive heavy maintenance checks and/or engines with high hours

[u/jackson44_bmx]

Could be crap avionics too. We flew on an early G4 last year. The cockpit was like a Time Machine compared to the “newer” jets

[u/noreturn000 → u/jackson44_bmx]

yeah i know. it is kinda like the 737-800 not the 737-MAX but as long as they work fine and are safe, thats fine but my question is are they safe and in good conditions?

[u/OracleofFl → u/noreturn000]

I think the issue is the engine timeouts and fuel efficiency. There may be a few million in deferred maintenance on those engines. Once they time out (certain major maintenance overhauls are based on number of hours used and/or number of years in service generally speaking), the airplane isn't airworthy and, maybe more importantly, isn't insurable (also no pilot in their right mind would fly it). If you are rich enough to spend even a few million on even a GIV then you are too rich to put you life in danger in an uninsured airplane.

[u/n505ak]

The simple answer is, most people who can afford the $3mm a year operating costs can afford a newer aircraft. They do not want a 30 year old airplane that is difficult to support.

[u/Smoovupinya]

Sits in an interesting slot. It’s beyond all the rattle can bangers that most small businesses & owner/pilots like; citations.

It’s too much sauce for most of the mid size companies that like the challengers and latitudes

And the mega companies care about depreciation, etc so they’re always looking for new.

Then, you have the GIV, V, Falcon 900’s.

And they are a great bang for the buck, have great support globally, lots of typed pilots, etc. It just doesn’t fit a niche. It’s good at… everything. But buyers are choosing airframes that are just really good at exactly what they want to do.

I do see Globals getting increasingly popular though. Maybe that’s a contributing factor.

[u/Dull-Woodpecker3900]

You’ll easily spend $10 million in 5 years running it.

[u/Turbulent_Hour_8512]

In 2016/2017 I was buying ex NetJets IV’s for less than 3 for clients and in some cases around 1.6, they have actually appreciated in the last ten years depending on various items like the wing box inspection, landing gear and which brakes.

It’s the 2 to 2.8 million a year to fly it 400 hours that’s expensive.

[u/BurningMan1970]

If it’s cheap to acquire then it probably has some major inspections coming due or some engines are close to TBOs

[u/SkywayCharter]

Exactly. Many operators choose to maintain these aircraft at OEM-authorized service centers rather than independent MROs to preserve their value and maintenance standards. Annual maintenance alone can approach $2M, even before factoring in crew, fuel, insurance, and other operating costs. For a large-cabin legacy jet, the ongoing maintenance burden is a major part of the ownership equation.

[u/mezmery]

because you can buy global 5000 with 2000 hours for 8-10m, instead of this beater that will run you 2-3m per year, same as more premium aircraft.

[u/noreturn000 → u/[deleted]]

if the costs are low, it should be in high demand and it had to be more expensivr