Driven by Sparse Inventory, OEM Backlogs
LAS VEGAS, NEVADA, UNITED STATES, October 18, 2021 /EINPresswire.com/ — Takeaways from the International Aircraft Dealers Association’s Third Quarter Market Report show an astounding 20 to 30 percent increase in sales prices of used business aircraft, driven by historically low inventory and a backlog of new aircraft orders from manufacturers. The report was released at the 2021 NBAA Business Aviation Convention & Exhibition held here last week.
“Clearly, the market for used business aircraft is at an unusual place, with much higher prices and dearth of inventory in the most modern used business aircraft markets,” said IADA Executive Director Wayne Starling. “The third quarter responses from our membership predict the next six months will continue to have increased pricing and demand for all sectors of the market, while inventory deficiencies will continue to drive higher prices.”
Informed Opinions Based on Hard Data
The report is a product of trusted opinions backed by hard sales data. It incorporates quantitative sales data from AircraftExchange.com and qualitative survey data from IADA Accredited Dealers. IADA markets are spread across the globe, with 36 percent of the activity in North America, 20 percent in Europe, 18 percent in Latin America, 15 percent in Asia and the Pacific, and 12 percent in the Middle East and Africa, with less than one percent in the Caribbean.
Year over year, third quarter used aircraft dealer activity reflects a continuing heated market with 182 aircraft agreements, compared to 110 in the third quarter of 2020. There were only seven transactions with lowered prices in the third quarter of 2021, while there were 83 in the same period in 2020.
IADA dealers reported 40 transactions that fell apart in the quarter that just ended in 2021, compared to 50 in the same period in 2020. And IADA dealers closed 325 deals this past quarter, compared to 283 in the third quarter in 2020.
Projections for the next six months for the preowned turboprop, light jet, midsize, large and ultra-long-range jet markets, all show prices and demand are both up dramatically. Similarly, supply will stay far below normal where it is, or even drop slightly lower.
IADA Accredited Dealers have a clear grasp on the state of the market. They buy and sell more aircraft by dollar volume than the rest of the world’s dealers combined, averaging over 700 transactions and $6 billion in volume per year. The global network includes 48 Accredited Dealers, Certified Brokers, all the major OEMs, and over 63 of the industry’s leading Products and Services providers.
With historically low aircraft inventory levels, IADA brokers and dealers have a distinct advantage through an exclusive broker portal. This resource enables IADA brokers and dealers to give clients a distinct advantage, with access to information and inventory only available to IADA Accredited Dealers. To download the Third Quarter 2021 IADA Market Report go https://aircraftexchange.com/market-report.
The International Aircraft Dealers Association is the collective force influencing and shaping the aircraft transaction industry. With accredited Dealers of all sizes, and dozens of verified Products and Services members skilled in aircraft transactions, IADA is the acknowledged leader in developing industry standards for efficient, effective and ethical business aircraft transactions.
Working for business aircraft owners globally, IADA provides a facility for professional standards, ethics and exchange of information among its members and to the public for the purpose of creating a more efficient market, facilitating transactions and providing transparency in transactions, thereby increasing business aircraft ownership and usage worldwide. For more info about IADA go to https//iada.aero.
About IADA’s AircraftExchange.com
AircraftExchange is the exclusive online marketplace for IADA. The public search portal was created to provide business jet and private jet buyers a trustworthy and efficient way to identify, locate and purchase preowned aircraft from the most ethical dealers and brokers in the world.
Only IADA accredited aircraft dealers may list used aircraft for sale on this search portal, where buyers can shop from hundreds of listings at any given time. For more info about AircraftExchange.com, go to Aircraft For Sale Exclusively by IADA | AircraftExchange.