Broker: Buyer's Market for Bizjets 'Will Not Last'

Business jet broker The Private Jet Company (TPJC) believes that the "confluence of factors creating the current buyer's market" will not last beyond 12 months. While the Jupiter, Fla.-based firm clearly has a vested interest in encouraging the purchase of preowned business jets, it cited third-party data to support its claim. TPJC noted that general economic conditions led to a "historically high used inventory level, prices that are 50 percent below the 2008 highs and still relatively low corporate demand." Prices are continuing to fall, but data from JetNet indicates they are declining at a slower rate. "This is what market-watchers call the 'second derivative' of price movement," TPJC said, "and as it turns positive, it indicates that prices will soon bottom and begin to turn up." TPJC expects corporate buyers to reenter the marketplace in 12 to 18 months, as their earnings continue to improve.