Summer is typically a time the pre-owned market experiences a seasonal bump in inventory, as buyers are out using their jets to get to their favorite summer destinations and aren’t necessarily thinking of buying. This year, however, has been somewhat uncharacteristic and today’s supply of used jets is just about where it was when the year began. The lack of any wild gyrations could be a welcome sign of stability. Historically sales are slow during the summer while more aircraft are added, but so far that’s just not the case; and while summer is far from over, should we stay the course it could set the stage for an interesting fall period, when buyers seem to begin satiating the pent-up appetite for jets.
Pricing is clearly driving the market, and to that end we’ve seen some models sell in ranges that represent both lower lows and lower highs from a year ago while others seemed to have reached stabilization. The simplest of equations, that of supply and demand, rules the day as far as pricing is concerned. Consider that there have never been more GVs for sale. Even though the 19 for sale at present represent only 10 percent of that fleet, it’s double the supply of one year ago, so pricing in this segment is still under pressure. Conversely, the G550 has pared down its offerings slightly from a year ago to just 10, and when you consider that there are more than 350 in operation the current inventory represents less than 3 percent, giving sellers a bit of leverage now.
