Maybe you knew your company is ready for a private jet, but you’re not sure if the budget is ready. Your reluctance could vanish after you take a look at today’s used jet market. It’s an exceptional time for first-time buyers to own a jet, with more affordable options than ever before.
Prices are falling for many models
As cited in the recent Robb Report (October 2014), prices of pre-owned aircraft plunged during the recession (starting in 2008), triggered largely by a glut of planes from owners who could no longer afford them or justify their cost. Jetnet reports the average asking price for a pre-owned aircraft only 15 years old or newer was $8.7 million in 2013 — 20% less than it was in 2009.
While used aircraft values continue to trend downward, prices are falling less drastically than they were during the worst part of the recent recession, reports aviation website Globalair.com. The continuing low prices make the pre-owned market especially welcoming for first-time buyers as well as bizjet and private jet owners who want to trade up. Buyers looking to acquire larger aircraft may also add to the used-jet supply by selling their current jets as the market achieves some equilibrium and as the stigma of owning a business jet wears off.
Best aircraft values
A large selection of reasonably priced models is available — especially older, pre-2000 aircraft. Prices have fallen considerably for some late-model midsize jets, too, such as the Bombardier Challenger 300, Challenger 605, and Gulfstream G150. The entry of the Gulfstream G650 means that prices for older Gulfstream models — the G550, G450, GV, and GIV — have all been pushed down. For example, the average price for a G550 over the last six months (based on 10 transactions) is $36.1 million used, and a GIV can be as low as $3 million.
As more buyers enter the used jet market and soak up the available supply, reduced inventory levels could drive up prices and create a seller’s market. For the foreseeable future, however, the pre-owned aircraft market is ripe for the picking.
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 +1.305.754.3313, or visit us online.