Mente: Used Bizjet Market Busy, Balanced as Year Ends

 - December 10, 2019, 10:58 AM

The preowned business jet market is seeing a flurry of activity and more balance as the year ends, according to brokerage Mente Group. However, the Dallas-based firm is less certain that balance will remain in 2020.

"With more aircraft on the market recently, buyers and sellers are seeking to make deals before the end of the year to hedge against the economic, political, and tax uncertainties that 2020 might bring," said Mente president and CEO Brian Proctor. He added that the market is finding an equilibrium now with an even number of buyers and sellers seeking to make deals.

"We have seen some slight price declines recently that have offset higher prices on a slower volume earlier in the year," he said. Since the currently favorable tax climate could change in 2020, both buyers and sellers have been trying to lock in certainty in recent months, Proctor noted.

These concerns are heightened by the fact that several international economies are teetering on recession. Adding to that are the ongoing impeachment hearings and the upcoming election. With these uncertainties, the future market could shift in favor of buyers, he said.

"With all of this going on as we wind up the year, the preowned aircraft market is trying to get ahead of potential changes. So aircraft brokers and lenders have been busy lately," he concluded.