Finance, Taxes, Insurance
Preowned Report: Used Market Hitting the Apex
The industry is seeing prices rebound and inventory tighten.
Despite sluggish sales in its history, sales for pre-owned Piaggio Avantis have heated up along with the rest of the market. (Photo: Matt Thurber)
Despite sluggish sales in its history, sales for pre-owned Piaggio Avantis have heated up along with the rest of the market. (Photo: Matt Thurber)

A super-heated used business aircraft market has had more jet-A thrown on it due to new tax law changes and looming FAA equipment mandate deadlines. The tax law changes, embodied in the federal Tax Cuts and Jobs Act of 2017, extends 100 percent bonus depreciation to used equipment, including used aircraft. Meanwhile, the 2020 deadline for ADS-B installation and an expensive airworthiness directive—estimated to cost up to $325,000 per engine—for certain Honeywell TFE731-4- and -5-powered aircraft could combine to purge up to 20 percent of the older bizjet fleet from the market in short order, according to the Dallas-based Engine Assurance Program (EAP).