The private jet market is undergoing a significant shift, and it’s becoming more of a buyer’s market. While there is still a balance between buyers and sellers, several key factors are contributing to this changing landscape. Whether you’re a first-time buyer or looking to upgrade, understanding these market dynamics is essential.
Inventory Increase and Price Adjustments
One of the primary drivers behind this shift is the increase in inventory. More aircraft are available for purchase, which has led to more reasonable pricing. This is great news for buyers who may have been priced out of the market during periods of low supply. Now, with more options available, you can be more selective, ensuring you find the right aircraft at a better value.
Fewer New Jet Deliveries on the Horizon
A projected decrease in new jet deliveries is also affecting the market. As the number of new jets entering the market slows down, the demand for preowned aircraft is expected to rise, potentially pushing their prices higher in the future. This makes it an ideal time to consider purchasing a preowned jet before prices climb.
First-Time Buyers Enter the Market
With lower prices attracting more first-time buyers, the market has seen an influx of new entrants. Bargain deals on private jets, along with favorable financing options, are making it more accessible for those looking to experience the benefits of private aviation for the first time.
Changes in Bonus Depreciation
The 100% bonus depreciation that was available for new and preowned aircraft under the Tax Cuts and Jobs Act (TCJA) is beginning to phase out. This depreciation benefit allowed buyers to deduct a large portion of the aircraft’s cost in the year of purchase, making it a compelling reason to buy. As this benefit diminishes, buyers are keen to take advantage of what’s left while they can, but it’s important to be aware of the tax implications moving forward.
The Market for Newer Aircraft Remains Competitive
While the overall market is shifting toward buyers, the demand for newer aircraft remains strong due to long order backlogs. This means buyers looking for the latest models may still face competitive pricing and limited availability.
Key Considerations for Buyers
Navigating this evolving market requires a strategic approach. Here are a few tips to help you make the right decision:
- Value: Seek out high-quality aircraft with a good pedigree. A well-maintained aircraft with complete records will not only offer better performance but also hold its value better in the long run.
- Timing: Consider the timing of your acquisition. With changes in inventory and market dynamics, buying now could save you money down the road. However, understanding the optics and potential resale value is crucial.
- Expertise: Partnering with a trusted expert in the market is essential. They can help you navigate the complexities of the market, identify the best opportunities, and advise you on whether now is the right time to buy.
At Tern Jet Sales, we specialize in guiding our clients through every step of the aircraft acquisition process. With decades of experience and a deep understanding of the private jet market, we are here to help you make informed decisions that align with your goals. Whether you’re a first-time buyer or a seasoned owner looking to upgrade, now is an opportune time to explore your options.
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