Vol. 26, No. 4 | Dec. 17, 2013 | Go to Charts
IN THIS ISSUE
Bluebook Perspectives: Pre-owned Market Sends Mixed Signals Throughout Industry
Into the Blue: Aircraft Bluebook At-a-Glance - Cessna Mustang
Ask Aircraft Bluebook: What Does the Trend column in the Aircraft Bluebook represent?
Pre-owned Market Sends Mixed Signals Throughout Industry:
By Dennis Rousseau | President and Founder | AircraftPost.com
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. Overall, pre-owned inventory for this class aircraft is up slightly over last year. As displayed in the percentage of market data sheet [see page 2], later generation, current production aircraft show less aircraft on the market, as a percentage of the fleet, than those out of production. In normal markets, less than 10 percent of an available fleet would be considered average. However, for the last five years our markets have swayed from any semblance of normalcy.
When viewing pre-owned transactions for current production aircraft (see Transaction Comps below and on page 4), the total sold is the same for 2012 as the first 11 months of 2013. Year-to-year selling price increases typically are associated with the average year of manufacture being newer (i.e., Challenger 300, Falcon 2000EXy, Lear 60). When price declines exceed 10 percent, as in the case of the G450, it typically is because the average year of manufacture is older than the prior year. The Gulfstream G550, Falcon 900EXy and Citation Sovereign are good representations of year-over-year nominal depreciation.
Aircraft Bluebook – Price Digest here for you
Please contact Aircraft Bluebook if you have any specific concern in a particular aircraft market. We will be happy to share with you the most up-to-date information available for your market segment. Call us toll-free at 877-531-1450 or direct at 913-967-1956.
CURRENT MARKET STRENGTH
CMS represents an aircraft’s current strength in the market. An A+ rating indicates the aircraft is enjoying a very firm market. Prices for an A+ aircraft are steadily rising, and holding times are very short or nonexistent. At the opposite end of the spectrum, a C- aircraft is one experiencing a very soft market. Its price is commonly discounted, and it often sets on the ramp in excess of eight months before selling. It is important to remember that Current Market Strength is not a forecast. It is valid only at Marketline’s effective date of release.
All of the listed aircraft have a composite score that is presented in the Used Aircraft Market graph. Data points are represented in relationship to the respective new delivered historical price that is equal to 100%. The measure of change is reported in the actual percentage of value in relation to new. The delta between reporting periods can be concluded as the percentage of change.