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Dealers of used private jets are getting busier, according to new data

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A report from the International Aircraft Dealers Association shows pre-owned private jet sales are enjoying a strong rebound

During a VBACE press conference last week, the International Aircraft Dealers Association (IADA) revealed a couple of bright spots coming out of the COVID-19 pandemic.

First, the trade group began capturing monthly data about the pipeline of used aircraft transactions. Its 46 accredited dealers account for 40% of worldwide pre-owned private jet sales. Secondly, the data is revealing a market that is bouncing back.

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From a low of 100 Closed Deals during April and Bay, during September and October, the number more than doubled to 228. For Under Contract, which means a signed purchase agreement since the last report, deals increased from 126 during the first two months of the tracking to 219 over the past 60 days.

Joe Carfagna Jr., IADA’s chairman, told attendees, “Look at the difference between the numbers in April and May… compared to September and October.”

He added, “My hunch will be November’s numbers will make October’s numbers look small.”

Pre-Owned Private Aircraft Sales Pipeline (April to October 2020)

Closed
Deals
Under
Contract
Fell
Apart
Lowered
Price
New
Acquisition
Agreements
Dealer Inventory
Purchase

Agreements
April 53 60 31 36 27 7
May 47 66 7 46 30 6
June 74 93 7 37 29 7
July 103 87 20 34 23 12
August 81 94 16 27 42 10
September 99 139 14 22 45 12
October 129 90 16 19 56 13
Source: International Aircraft Dealers Association

Deals that Fell Apart, transactions that were canceled after having a signed letter of interest appear to have stabilized. And despite the number of transactions has doubled, fewer owners are lowering the price of the aircraft they are trying to sell. From a high of 46 price cuts in May, there were only 19 in October.

There has also been a sharp upturn in New Acquisition Agreements, climbing from 27 in April to 56 in October. The same is true for Dealer Inventory Purchase Agreements, the number of deals a broker made with sellers to purchase aircraft from their own inventory. After being in the single digits April through June, they have been in double digits since July.

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The post Dealers of used private jets are getting busier, according to new data appeared first on Private Jet Card Comparisons – Know Before You Buy.

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