Private Jet Prices Surge, Surpassing Valuations

With just 1.3 percent of preowned aircraft available for purchase—a historic low—asking prices continue to increase, rising 11 percent year-over-year, according to market analyst Jefferies Aerospace & Defense Electronics. Some brands are seeing prices skyrocket: Gulfstream is up 41 percent based on the strength of sales involving the G450 and G150, according to Jefferies.

Using Amstat data, Jefferies has introduced monthly research that tracks pricing fundamental for business jets. It noted that the estimated valuation of the preowned inventory is up 4 percent from February 2021. The aircraft valuation—which provides an estimate for what the sales price of an aircraft should be—is based on average selling price adjusted for typical premiums and/or discounts, age of aircraft, upgrades, engine plans, and usage. With regard to valuations, Gulfstream is leading the increase with the G280 and G650, each up 26 percent, while the G550 rose 29 percent.

Related Article

A Pivotal Period for Preowned Aircraft Sales

Here comes what could be the market’s most critical fourth quarter ever.

Asking prices, however, are currently mismatched, up 13 percent over the average fleet valuation. This dynamic crosses most of the fleets with the exception of Dassault. “Embraer and Gulfstream ask prices in the used sales market appear to have the largest disconnect relative to estimated valuation with prices 28 percent and 27 percent higher,” the analyst reported. “Bombardier and Cessna average used market prices are 7 percent and 6 percent above estimated valuation...Dassault is relatively in line.”