Good news for aircraft owners who are looking to sell: JETNET’s year-end market report indicates that the inventory of preowned business jets for sale was down by almost 1% in 2013. In fact, 2013 year-end inventories of preowned business jets were at their lowest point since 2007.
Encouraging signs for sellers
It’s not quite a seller’s market yet, but for aircraft owners — especially owners of heavyweight aircraft — the signs are encouraging. In 2013, full-sale transactions for preowned business jets were up by 0.6% from 2012. In addition, these bizjets showed the largest gain in average asking prices, posting an increase of 10.7% year-over-year.
However, it took longer to sell these aircraft: The average days on the market for preowned business jets increased by 20 days to 391 days in 2013. Significantly, retail sales transactions increased only for some weight classes of preowned business jets: heavy and medium-weight, which grew by 5.7% and 2.3%, respectively. Lightweight preowned aircraft sales declined by 4.2%.
The decline in sales of smaller preowned business aircraft is consistent with the ongoing trend of the business jet market splitting into distinct, unequal segments. The market has seen considerable bifurcation in the past five years, with the very wealthy clamoring to purchase brand-new, large, luxury aircraft, leaving the small- and preowned-small jet market floundering. However, things are looking up for the preowned jet market as young, wealthy Chinese buyers are recognizing the value of used aircraft and are partially responsible for driving the increased demand.
What to expect
What do these trends mean for preowned jet owners, buyers, and sellers? For owners who are looking to sell heavy- and mid-weight-class business jets, the market is more favorable than it has been in several years. Large-cabin private jet owners are in an especially advantageous position, as demand for these aircraft continues to grow. However, sellers will need to remain patient, as sales could take a year or longer to close.
The bottom line is this: Even though the market is more amenable to sellers, it is still a buyer’s market, with inventories above 10% and preowned for-sale business jets staying on the market longer.
Contact L & L International if you need assistance in purchasing or selling a private jet.You can reach our sales specialists today at sales@L-Lint.com, call us any time at 877-453-8276 (+1.305.754.3313), or visit us online.