The final quarter of the year can be one of the busiest periods in business aviation. If you’re considering a year-end aircraft purchase, selling your current aircraft, upgrading to a newer model, or adding to your fleet, waiting until November or December can create unnecessary challenges.
Pre-buy inspection slots fill up. Maintenance facilities get busier. Financing, escrow, documentation, and closing schedules become tighter. At the same time, buyers hoping to take advantage of 100% bonus depreciation may add even more activity to the market.
The result is simple: if completing an aircraft transaction before December 31 matters to you, starting earlier gives you more options and more time to manage the unexpected.
Here’s why aircraft buyers and sellers should begin planning well before the year-end rush.
1. Year-End Market Congestion Slows Everything Down
As December approaches, transactions in the aviation industry often surge. Buyers and sellers rush to close deals before the calendar year resets, resulting in:
- Longer wait times for pre-purchase inspections
- Slower responses from financial institutions
- Backlogs with escrow companies and aviation authorities
What might take weeks in the summer can easily take twice as long in November or December. Delays could mean missing the deadline to finalize your sale or purchase this year.
2. Lower Inventory as the Year Closes
The aircraft market often sees a drop in available inventory toward year-end. Many sellers list their aircraft earlier in the year, and by fall, the most desirable models may already be under contract. If you wait until the last minute, your options may be limited—leaving you with fewer choices and less leverage in negotiations.
3. The 100% Bonus Depreciation Incentive
One of the most powerful financial tools available to qualified buyers in the U.S. is 100% bonus depreciation. This incentive allows certain aircraft purchases used for business to be depreciated fully in the first year of ownership, potentially offering significant tax benefits.
However, to claim it for the current tax year, you must have your aircraft purchased, delivered, and placed into service before year-end. As the deadline approaches, the incentive itself creates a surge in demand, further adding to the year-end rush. This heightened activity compounds the market’s natural slowdowns, leading to increased competition for available aircraft, tighter scheduling for inspections, and potential delays in closing. Waiting too long could put you at serious risk of missing this valuable opportunity.
4. More Time for Strategic Planning
Starting the process earlier in the year gives you more flexibility:
- Time to evaluate multiple aircraft options
- Space to negotiate favorable terms
- Less pressure when arranging financing or crew transitions
- Ability to handle unforeseen issues without jeopardizing your deadline
The Bottom Line
Selling or purchasing an aircraft is a significant transaction, and timing can make a real difference. By avoiding the year-end rush, you can access better inventory, reduce stress, and position yourself to take full advantage of the 100% bonus depreciation incentive before it expires for the year.
The sooner you begin, the smoother—and more strategic—your transaction will be.
Contact sale@ternjetsales.com to get expert advice and connect with the right professionals for your journey to success.
Read other blogs from Tern Jet Sales at www.ternjetsales.com/blog.