Takeaways from the International Aircraft Dealers Association’s Third Quarter Market Report show an astounding 20 to 30 percent increase in sales prices of used business aircraft, driven by historically low inventory and a backlog of new aircraft orders from manufacturers.
The report was released at the 2021 NBAA Business Aviation Convention & Exhibition held here last week.
“Clearly, the market for used business aircraft is at an unusual place, with much higher prices and dearth of inventory in the most modern used business aircraft markets,” said IADA Executive Director Wayne Starling. “The third quarter responses from our membership predict the next six months will continue to have increased pricing and demand for all sectors of the market, while inventory deficiencies will continue to drive higher prices.”
Year over year, third quarter used aircraft dealer activity reflects a continuing heated market with 182 aircraft agreements, compared to 110 in the third quarter of 2020. There were only seven transactions with lowered prices in the third quarter of 2021, while there were 83 in the same period in 2020.
IADA dealers reported 40 transactions that fell apart in the quarter that just ended in 2021, compared to 50 in the same period in 2020. And IADA dealers closed 325 deals this past quarter, compared to 283 in the third quarter in 2020.Six-Month Outlook
Projections for the next six months for the preowned turboprop, light jet, midsize, large and ultra-long-range jet markets, all show prices and demand are both up dramatically. Similarly, supply will stay far below normal where it is, or even drop slightly lower.
IADA Accredited Dealers have a clear grasp on the state of the market. They buy and sell more aircraft by dollar volume than the rest of the world’s dealers combined, averaging over 700 transactions and $6 billion in volume per year. The global network includes 48 Accredited Dealers, Certified Brokers, all the major OEMs, and over 63 of the industry’s leading Products and Services providers.