Bluebook Perspectives: Pre-owned Market Sends Mixed Signals Throughout Industry

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For current generation business jets (turbofan, EFIS, FANS capable, etc.), we’ve taken a random sampling representative of the medium- and long-range category aircraft.  Nearly the same percentage of the available fleet (~10 percent) is on the market through December 2013 as was at the end of 2012.  In the case of the GIV, Challenger 605 and G550, the percent increase/decrease was negligible.
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Bluebook Perspectives - Value Retention In Today's Market

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By Dennis Rousseau | President and Founder | AircraftPost.com

There has been conversation and many questions over the last few years relating to residual values, value retention, value as a percentage of cost new, values coming back, et al. For years, our industry used a 3 to 4 percent annualized depreciation schedule to gauge future values for business jets. Due to the fact our business was in its infancy, we did not possess formidable history to determine the validity of the schedule. When we buy-in to the fundamental assumption that aircraft are depreciating assets with a 30-year life cycle, most business jets will reflect an average midlife (15 years) value retention of 50 percent, when compared to the original cost new.  

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YTD Pre-owned Transactions & Prices Continue Down

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When viewing a random selection of pre-owned transactions for the first 5-months of 2013, the number of sales are trending down 15 percent when compared to the same period in 2012. Actual selling prices also are down on average 15 percent, while inventory levels for the same group of business jets has increased 20 percent.
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BLUEBOOK PERSPECTIVES

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Thumps & Bumps in the Pre-Owned Market

Vol. 26, No. 2 | June 6, 2012 | Go to Charts
by Carl Janssens, ASA | Aircraft Bluebook — Price Digest

Optimists see the silver lining behind the cloud while the pessimist only sees the cloud. Optimism continues to be the silver lining in the pre-owned aircraft market. However, reality of the dark cloud dictates an awareness and calculated approach.
Such are the conditions in the current ever-evolving pre-owned market. For the most part, the glory days of aircraft values being treated as premium investment opportunities are now nothing more than a faded memory. Knowledgeable buyers and sellers are keenly aware of this. Change of ownership continues at a slow to steady pace while values for the most part show continued depreciation. The exceptions are late model long range executive business jets.

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Disparate Pre-Owned Aircraft Markets Emerge

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Why does the pre-owned market appear to be good, bad and confused? The answer is the closed traffic pattern around the economy. As the recovery stumbles along, confidence remains shaky. We can’t break out of the pattern.
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