The preowned business jet market is currently experiencing a “multifaceted period of adjustment, marked by a notable increase in inventory levels across the market,” according to a first-quarter market update from aircraft valuation firm Vref. “This expansion in available inventory is occurring alongside a softening of the market, a phenomenon reflective of shifting buyer sentiment and evolving market conditions.”
In the first three months, Vref noted a “pronounced decline” in transaction volumes for business jets, with sales transactions halved from first-quarter 2023. The company said the lower transaction activity is indicative of a cautious market outlook shaped by several factors that are increasing perceived risk, especially for inventory aircraft dealers.
“The convergence of high interest rates, declining values, election year uncertainties, and global economic issues has led to an increased level of caution among buyers, sellers, and intermediaries alike,” Vref said. “The current state of the business jet market is a reflection of these complexities, signaling a period of strategic reassessment and careful planning as stakeholders aim to mitigate risks and capitalize on opportunities in a rapidly evolving landscape.”
Meanwhile, the firm noted that the turboprop sector has found stability, particularly for single-engine models. There is also high demand for Beechcraft King Air 350s and B200s, which keeps inventory low for these models, according to Vref.