Some US fliers aren’t searching for the shiniest and latest plane on the lot anymore. As a substitute, they’re turning to pre-owned plane to get a greater deal.
Private aviation hit new heights through the pandemic as non-public flights have been safer and extra dependable than business. The upward trend continued into 2022, regardless of inflation and better gasoline costs. On the identical time, manufacturing slowdowns have resulted in restricted portions amongst jet makers and purchasers now face lengthy waitlists for newer fashions. Rising rates of interest have additionally led to consumers to be extra conservative with their spending; no one needs to cope with greater borrowing prices amid a recession.
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Consequently, the pre-owned market has flourished. Aviation analyst Brian Foley says that the stock ranges for pre-owned planes elevated by 40 p.c through the second half of 2022, citing knowledge from business specialist AMSTAT.
Brian Proctor, chief govt of aviation advisory and brokerage agency Mente Group, informed Reuters that he’s at the moment working with two lively consumers trying to buy a pre-owned jet “even when it wasn’t 100% good.” Proctor additionally notes that whereas the demand is excessive, the pace of gross sales has slowed, with many pre-owned plane now taking weeks to promote slightly than hours or days like in late 2021.
The transfer in direction of pre-owned vessels may be linked to the truth that extra international locations trying to aggressively tax new plane with excessive retail costs. Final 12 months, Canada handed laws imposing new tariffs on luxurious jets, vehicles and yachts. In December, Belgium introduced that they’d be taxing private jet house owners to scale back noise and air air pollution. France has additionally thought of imposing taxes on non-public jets to combat in opposition to rising carbon emissions.
In such tumultuous instances, how do you resolve which jet to purchase and when?
“The one approach to efficiently navigate this market is to take your time and search for alternatives,” Jennings provides. “For those who completely should purchase now, search for an skilled dealer who can do the very best due diligence.”
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