Hot Across All SectorsThe fourth quarter 2021 responses from IADA members predict the first six months of the coming year will continue to bring an increase in demand for all sectors of the used aircraft sales market, including turboprop, light, medium and large, and ultra large jets, while supply shortfalls are projected to continue driving prices higher.
"Values have increased an average of 10 percent a month for the past three months. The rate of change feels unsustainable. However, absent an increase in supply or a dramatic drop in demand, appreciation will likely continue into 2022," said IADA Chairman Emeritus Paul Kirby, who is also the executive vice president of QS Partners, another accredited dealer.
"In my aircraft appraisals business, for below $10 million fair market value aircraft, I am adding 20 percent to account for the lack of supply, and extreme demand," saidJeremy Cox of JetValues-Jeremy, LLC. "Above $20 million I’m adding 10 percent, with all points in-between pro-rated. The used aircraft marketplace, since Q3 2020, has developed into a bull market, with minimal days on market and in most cases, premium pricing above asking price is occurring."Crazy Numbers
Kyle Wagman, director of aircraft transactions and consulting for Leading Edge Aviation Services, said, "I think we all have eager and ready buyers ready to strike with offers but with limited supply of preowned aircraft, values have gone to crazy numbers. Who would have thought that an aircraft purchased new from an OEM less than three years ago can be sold in today's market at a premium compared to what the owner paid for it?"
The IADA Market Report is an informative and reliable view of the state of the aviation industry. It covers IADA accredited dealers’ perceptions about the market taken from the survey of IADA members, and actual sales data reported monthly by IADA dealers, even when inventory is difficult to locate and might never appear on the market. But it does not include preowned aircraft transactions conducted solely by IADA’s OEM members.
The perspectives and projections from IADA members for the IADA Market Report are informed by the monthly activity reports submitted by IADA accredited dealers through AircraftExchange. In addition to sales data from AircraftExchange listings, the IADA Market Report includes data from all IADA accredited dealer activities and transactions, reported in total.
Todd Spangler, sales director of IADA accredited dealer Jetcraft, covering Florida and Central and South America, summed up the feelings of many preowned brokers: "Buying activity is excellent. Inventory levels are serious concern. The OEMs need to begin delivering new aircraft at higher volume in order to displace more aircraft into the marketplace."
To register to download the report go to https://aircraftexchange.com/market-report.
About the International Aircraft Dealer Association
IADA is a professional trade association formed more than 30 years ago, promoting the growth and public understanding of the aircraft resale industry. IADA now offers the world's only accreditation program for dealer organizations and the only certification program for individual brokers. The process delivers lofty standards of ethical business practices and transparency regarding aircraft transactions, leading to a more efficient and reliable marketplace. For more info go to www.iada.aero.
IADA’s online marketplace, AircraftExchange.com, is the industry’s premier source of exclusive aircraft for sale or lease by IADA accredited dealers. IADA’s robust listingverification process ensures that unlike other online advertising venues, there are no duplicates, no phantom listings and no aircraft advertised that are not truly available for sale.
The AircraftExchange search portal enables organizations to create a confidential dashboard of business jets for sale, filtered based on their features and amenities, aircraft class, age, and price. Users can browse through data-rich listings for some of the most popular aircraft manufacturers, including Embraer, Cessna, Bombardier, and Gulfstream jets. For more info about AircraftExchange go to www.AircraftExchange.com.