The pre-owned Gulfstream specialists Hagerty Jet Group has forecasted a “choppy” preowned business jet market for 2019 it says largely driven by growing political uncertainty and an equity market that is experiencing volatility.
The company says: “Demand for aircraft less than five years old will remain strong, but older aircraft will continue to decline in value, although at a slower pace than in 2017.”
According to the company volatility in U.S. equity markets made some buyers reluctant to pull the trigger on an aircraft purchase, at the end of 2018, and should that trend continue into 2019, there would be less competition for aircraft already on the market and thus potential for inventories to grow again, it noted.
Tight supply of younger Gulfstreams is expected to ease, as new G500s enter service and preowned six- to 10-year-old G450 and G550 inventory enters the marketplace as existing owners upgrade.
“This new supply will help, but not entirely satisfy strong demand for preowned aircraft less than five years old,” Hagerty Jet added.
The preowned G280 market is said to be healthy, with resale values remaining relatively strong for the super-midsize jet.
Only 3.2 percent of the 342 in-service G650/650ERs are marketed for sale according to the companies data which is extremely low for any aircraft type, thereby keeping resale prices very healthy, and bodes very well for ownership of the aircraft type.
Leave a Reply