August 11, 2021
Buying a Used Private Jet Just Got a Little Harder. Here's Why.
Working with an IADA Accredited Aircraft Dealer Helps You Get a Good Deal on Pre-Owned Jets for Sale
Just one year after the beginning of the novel coronavirus pandemic and subsequent shutdowns, many industries are still recovering. However, some are much healthier than others, namely the real estate, automotive, and pre-owned aircraft industries, which have seen a surge in demand.
Anyone with knowledge of basic economics knows that low inventories drives up prices -- especially as demand increases, too. This is absolutely the case in the used private jet sector, in which experts are seeing a strong uptick in sales. The metrics we’re seeing in the used car and real estate industries are quite similar to those in private aviation.
This means it’s gotten much more difficult to buy a used private jet. Let’s explore why, as well as the steps you can take to complete a successful purchase in today’s used jet market.
Current Cost of a Business Jet on the Rise
Just as homebuyers are forking over extra cash out of pocket to pay toward houses after making offers above appraised value, so, too, are the buyers who are seeking used business jets.
Inventory of both new and used jets are fairly low, but demand is high, so buyers want to make their offers stand out and get accepted.
Today’s used aircraft are selling for much higher prices than in recent years, thanks to the economic phenomenon the world is experiencing. People buying them truly need them for travel needs, as many work to continue social distancing and avoid large crowds in airports.
The rise in prices started in September 2020, when more and more people began offering cash for aircraft versus financing, and when people tended to have more free time for leisure activities after the world opened up after a number of pandemic-related shutdowns.
The Most Popular Private Jets for Sale Today
Not every type of private jet is quite as in demand as others, although most types and sizes remain in demand.
Currently, single-engine piston models like the Cessna 172 and Piper Cherokee family; high-performance pistons like the Cirrus SR22T or Beechcraft Bonanza; single-engine turboprops like the Epic E1000 or PIlatus PC-12; and twin turboprops like the Cessna Citation and Beechcraft KingAir line; are most popular in terms of sales, according to Flying magazine.
And as demand increases, so, too, does the speed at which these used aircraft are purchased. Just two years ago, aircraft listed for a reasonable price sold in 30 days or less. Today’s in-demand aircraft end up under-contract in less than a week, and often before they’ve even been officially listed for sale in an online ad.
Advice for Buying a Used Private Jet
If your goal is owning a private jet right away, then the aviation industry experts recommend heeding some very important advice as inventory remains low.
First, don’t settle on an aircraft you don’t love or that doesn’t meet your needs, just because one is available. One that is better suited for you will be available soon, as people scramble to sell jets and upgrade their fleets.
Second, don’t buy “junk” just for the sake of owning a jet. In short, you should never skip inspections and continue to do due diligence to ensure you’re buying a quality and safe aircraft, rather than one that needs a lot of work or has a high number of cycles and will need to be retired soon.
And third, hire an industry professional to help guide you through the used aircraft buying process. Their market knowledge will ultimately help you get the best deal and close quickly, and can even help you snag a jet you’ll love before it’s even advertised for sale.
Where to Buy a Private Jet
If you’re ready to buy a pre-owned jet for sale and have no interest in jet cards, your first step is to contact an International Aircraft Dealers Association (IADA) Accredited Aircraft Dealer, who will work in your best interest to help you find a jet that meets your needs and budget and to coordinate the purchase process for you.
These reputable dealers agree to uphold the highest ethics and offer extensive private aviation industry experience, as well as connections to aviation service providers who can take care of your new-to-you jet’s every need.
Find an IADA Accredited Aircraft Dealer near you, and then review vetted and verified listings of used business jets for sale on AircraftExchange.com.