July 17, 2022
Why It May Soon Be Easier to Buy a Pre-Owned Private Jet
The Inventory of Private Jets for Sale Is Growing - Talk to an IADA Accredited Aircraft Dealer to Start the Purchase Process
We previously reported on a period of time not so long ago in which competition for used private jets was fierce. Then, inventory was low, prices skyrocketed, and buyers were desperate to get an aircraft of their own.
During the pandemic, private aviation industry pros saw bidding wars and cash offers, a testament to the post-pandemic mindset.
But with more pre-owned jets for sale becoming available now, it’s getting easier to ditch the jet card or commercial airline frequent-flyer program, and shop for a nicely-priced, well-equipped business jet.
A Brief Glance at the Used Private Jet Market
In 2020, the private jet industry saw traffic increase rapidly, thanks in part to the COVID-19 pandemic.
Back then, there were few aircraft listings and plenty of individuals and businesses looking to grow their fleets. Their motivation was to avoid airports and flight cancellations, favoring the convenience of private aviation.
Experts reveal that at the height of the hysteria, buyers were jumping to own private jets before getting a thorough aircraft inspection, which wasn’t always a smart - or safe - business decision.
Now, although business jet traffic is still above 2019 levels, there are more used private jets for sale, which has flattened prices and given buyers more choice. This change in the market almost directly mirrors the conditions in the real estate industry today in some areas of the world. With fewer people scrambling to scoop up inventory, less competition and more affordable prices are likely. (Learn more about what this might mean for financing the purchase of a used private jet.)
What a Buyer’s Market Means
Recent data shows that the percentage of global used private jets for sale was up to 3.4 percent in April 2022, up from a historic low of 3.3 percent in February, just two months before.
It doesn’t seem like a big difference, but in this industry, it can be, especially when you consider that the 10-year average is a whopping 10.2 percent by comparison, according to AMSTAT, a reputable business aviation market research company.
Used private jets are officially approaching a buyer’s market, which can decrease demand for new aircraft from Bombardier, Cessna, or Gulfstream - and most buyers are opting for pre-owned ones to save major cash due to the price gap.
A buyer’s market is usually caused by a decrease in prices and an increase in inventory - but note that popular used aircraft are still hot - like the Cessna Citation or Embraer Phenom lines - although buyers are afforded more time to do thorough inspections and are less likely to enter a bidding war. Less popular jets - like the wide-ranging Bombardier Challenger line - could become more affordable as a result.
Some industry experts are reporting a big reason for the decline in jet demand: difficulty finding and hiring qualified pilots. However, for companies looking to upgrade the jets they already own and already have their own crew, or those offering a competitive salary and benefits package, this won’t be a problem. You also can rely upon a jet services company to provide and train your pilots.
Where to Find a Used Private Jet for Sale
Now that the competition is waning, even more businesses are deciding to purchase aircraft. With so many more preowned jets for sale on the market than even a couple of months ago, it can be a less stressful time to do it.
To ensure that you’re seeing only vetted and verified listings of used private jets, browse the sales ads on AircraftExchange.com, the exclusive listing website of the International Aircraft Dealers Association (IADA).
This search portal provides jet buyers with a trustworthy way to identify, locate, and buy used private jets via the world’s most ethical dealers and brokers. Only IADA Accredited Aircraft Dealers can list aircraft for sale.
About IADA Accredited Aircraft Dealers
IADA Accredited Aircraft Dealers participate in continuing education to stay abreast of the newest developments in the aviation industry and in buying and selling business jets. To maintain their accreditation process, they must also abide by a 14-point code of ethics, which requires them to always represent the best interests of their clients.
Accreditation is rare and coveted. Fewer than 7 percent of the approximately 730 aircraft dealers in the world have earned IADA accreditation. Find a reputable IADA Accredited Aircraft Dealer near you.