With the private aviation industry experiencing a worldwide shortage of pre-owned inventory, buying a jet needs more consideration than ever before. According to the latest data from AMSTAT, 5.2 per cent of the world’s business aircraft are for sale, the lowest rate for decades, yet Covid-19 has led to an increase in interested buyers.
Although the current climate is challenging, there are still opportunities for buyers and here, Jetcraft, the largest international buyer, seller and trader in business jets, share their recommendations.
Allow extra time for your search
Inventory levels may be lower than recent years, but there is still good quality inventory available. Buyers are more likely to find success if they give themselves extra time to secure their desired aircraft. It’s also important in this environment that buyers are prepared to act quickly, taking opportunities as soon as they are presented because some models may only be on the market for a matter of days.
Look to foreign markets
Some of the best new inventory Jetcraft are seeing come from international markets, and they are currently sourcing sought after pre-owned aircraft for clients in countries such as South Africa, Singapore and Malaysia. The level of maintenance in emerging markets is often on par with that seen in the US, and buyers can feel confident that any issues will be flagged and corrected during the pre-purchase inspection (PPI).
At Jetcraft, their in-house technical team will often find discrepancies ahead of the PPI. Further, any worries about differing regulations, time zones and language barriers can be eased by working with a global advisor with local representatives on the ground in every region.
Consider older aircraft
Today, older business aircraft are still safe and functional well into their later years. However, when purchasing an earlier model, make sure it is inspected in detail to avoid any surprises down the road. During this period when there is less choice of younger, more desirable models, it’s important to stay open minded about older aircraft because they can always be customised or upgraded to meet your original needs.
We’re seeing the value proposition of older pre-owned models increase, due in part to a growing number of maintenance facilities and the availability of cost effective, high-quality refurbishment options worldwide.
It’s important to note that values are not spiking drastically, even during this period of tightened supply. Some aircraft are selling above their retail value, but generally, prices are firming up back to pre-Covid 2019 or early 2020 levels.
Book your pre-purchase inspection now
Once a buyer has found an aircraft that meets the requirements, work with an advisors to get a PPI booked as soon as the Aircraft Purchase Agreement is in place. Slots are filling up quickly and any delays here can hold up the purchase process for your next business jet.
Work with a trusted advisor
In this challenging market, it‘s important to work with a team that has their finger on the pulse, and can act quickly to find buyers the right opportunity and complete a swift transaction. At Jetcraft, their global presence allows buyers to widen the reach of their search, equipping them with early access to inventory, even before it is officially listed. With their unmatched market data and intelligence, they help buyers plan, budget and negotiate the very best deals quickly and efficiently.
Furthermore, Jetcraft offer a unique service of trade-in solutions for their clients, so buyers can upgrade their aircraft while trading in their old one, enabling them to act faster than ever.
For more information, visit jetcraft.com.