According to a newly published market report from the International Association of Aircraft Dealers (IADA), a Perspective Survey was held to collect data from IADA accredited dealers, certified brokers, and IADA products and services members.
The survey included questions that measure members’ overall perspectives on the future of the used aircraft sales market over the next six months, including topics such as finance, leasing, and commissions.
One of the questions asked respondents about their assessment of the current business aircraft sales market. Data was shown that the second half of 2021 was categorized as the “best ever” market while the first half of the year was categorized as “normal”.
However, IADA accredited dealers mentioned that the market is not creating a positive environment for buying clients. As demand is outweighing supply, not only do buyers have to overpay for an aircraft that is lower in value, they also have no choice but to settle for an aircraft of lower quality.
Values have increased by 10% per month in the past 3 months and are only expected to continue due to the absence of increasing supply in the market.
The appreciation of an aircraft is so high that an aircraft purchased from an OEM less than 3 years ago can be sold in today’s market at a premium compared to what the owner previously paid for.
The Q4 2021 responses predict that the next six months will continue to bring increases in demand for all sectors of the used aircraft sales market including turboprop, light, medium, and large/ultra-long-range jets while inventory deficiencies are projected to drive higher prices, potentially 30-50% higher.
With the ongoing supply and demand imbalance in the business aircraft industry, buyers will be expected to continue overpaying prices of business aircraft.
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