#United States #Lincoln #Sandhills Global #used jets #Inventory Trends

Year-End Trends in the Used Jet Market

As the end of the year approaches, traditional trends in the aviation market are becoming apparent, particularly in the used jet segment. The latest aviation market reports from Sandhills Global reveal a significant decrease in the inventory levels of used jets during December. This coincides with typical seasonal buying patterns driven by year-end sales and tax incentives designed to encourage business transactions.

The data indicates that used jet inventory has experienced a 13.51% decrease month-over-month (M/M) and a staggering 23.09% decline year-over-year (YOY) as of the end of December. Breaking it down further, used large jets have suffered the steepest reduction, dropping 18.49% M/M. This trend highlights a robust market, as business buyers are motivated to take advantage of tax incentives, specifically the IRS Section 179 which allows deductions on equipment purchases.

Price Trends in Used Jets

Interestingly, while the inventory levels enjoy a consistent decline, asking prices for these jets are maintaining a more stable trend. In December, asking prices increased by a negligible 0.38% M/M but showed a more substantial 1.71% decrease YOY. Comparing categories, the super mid jet category, a notable segment within the used jet market, showed a varied price trend, decreasing by 1.22% M/M and 4.13% YOY. This inconsistent movement in prices amidst falling inventory presents a unique scenario for both buyers and sellers in the market.

Performance of Piston-Single and Turboprop Aircraft

Turning our attention to used piston-single aircraft, inventory likewise fell by 5.48% M/M, signaling a similar downward trend, although it represents a slight increase of 2.24% YOY. In terms of asking values for this category, they showed slight downward movement, reducing 2.14% M/M, but experienced a modest uptick of 0.51% YOY.

Further, the turboprop aircraft sector has also experienced downturns with a 1.63% decrease M/M and an annual reduction of 13.13%. Similar to previous categories, asking prices in this market also dipped, experiencing a 5.03% drop M/M and 4% decrement YOY. These fluctuations indicate pressure on pricing in light of demand and inventory availability.

The Robinson Piston Helicopter Market

In another corner of the aviation sector, the Robinson piston helicopters have displayed contrasting dynamics. Here, inventory levels rose 3.88% M/M, yet dipped slightly by 3.6% YOY. While signs indicate a gradual increase in inventory, the asking prices reflected a 4.61% decrease M/M but a 2.7% increase YOY, creating a unique situation of rising supply against a backdrop of fluctuating prices.

Conclusion

Sandhills Global's diverse suite of aviation products, including Controller.com and AircraftEvaluator, continue to aid in tracking these various market trends. As businesses attempt to capitalize on seasonal sales towards the year’s end, understanding these dynamic metrics is critical. The problem of declining inventory against asking prices maintaining sideways movements could shape negotiations and acquisitions in the months to come, especially with policies encouraging equipment purchases still in effect.

For a comprehensive exploration of your market interests, Sandhills provides invaluable insights through its Sandhills Equipment Value Index (EVI), a vital tool for anyone looking to stay ahead in the ever-evolving aviation industry.