A July article in the New York Post reports that private jet owners are taking a big hit to their wallets as the resale values of their jets lose as much as 50 percent. As a basis for comparison, many industry experts previously estimated aircraft depreciation at just around 2 percent a year.
While the news is a bitter pill for those looking to sell, it’s a great time to be in the market for a private jet. This optimal buyer’s market for private aircraft persists for a few reasons. Fueled primarily by an emerging class of wealthy buyers who prefer newer planes, the market for new jets is recovering faster than the one for pre-owned models.
BRIC is buying
Additionally, demand from BRIC countries (Brazil, Russia, India, and China) is supporting an otherwise ailing pre-owned market. Aviation experts predict that, for the first time this year, demand from these countries will surpass that of the U.S.
If you’ve been putting off the move toward purchasing a used jet for fear the market will continue to decline, don’t worry. High inventory and low demand continue to indicate near-perfect conditions for acquiring a pre-owned jet. There are plenty of good bargains to be had.
The rush is on
However, a bargain basement price on a pre-owned aircraft doesn’t necessarily signal a good deal. The old rules still apply. Do your homework, and above all, reach out to an experienced broker who understands the intricacies of the pre-owned jet market. The right partner will help you navigate this turbulent market and will have established key relationships that pave the way for a smooth buying process.
There’s no way to predict where the market will go next, but signs indicate that a recovery is imminent. By the time you read this, the best deals on pre-owned aircraft could already be gone.