Price Floor Elusive as Used Bizcraft Inventory Shrinks
Pre-owned business jet and turboprop inventory as a percentage of in-service aircraft continued to fall in March, though pricing has yet to find a floor, according to data released yesterday by aviation services firm JetNet. Inventory of used business jets fell 1 percent year-over-year, to 12.1 percent, the third lowest since 2005, JetNet said. Pre-owned turboprop inventory barely managed a decrease, falling just 0.1 percent to 7.7 percent from March 2013.
The good news is that pre-owned business jets are selling 73 days more quickly than they did last year, averaging 327 days on the market, and sales transactions are up 3.1 percent at 560 in the first three months, JetNet said. However, the bad news is that average asking prices for used jets declined by 11.6 percent year-over-year, to $3.893 million.
But the picture gets ugly for pre-owned turboprops, according to the JetNet data. Used-turboprop sales transactions are down 15.8 percent year-over-year, with just 287 deals logged in the first three months, and average asking prices lost 29.4 percent, falling to $1.177 million. Worse, pre-owned turboprops are taking 103 days longer to sell than they did last year, averaging 398 days now.