Pre-Owned Aircraft Market Being Driven by Motivated Cash Buyers

Tuesday, July 13, 2021 at 03:19 PM ET

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A recent buyer of an Epic E1000 wasted no time wiring his deposit the very same day he was told about the listing. Glenn Watson

Key Takeaways:

The pre-owned aircraft market is experiencing a "red-hot" recovery in mid-2021, characterized by low inventory, high demand, and rapidly increasing prices.
Aircraft are selling exceptionally fast, often in under a week and sometimes before official listing, with buyers frequently paying asking prices in cash.
Despite the competitive market and inflated prices, buyers are advised to exercise caution, avoid purchasing subpar aircraft, and seek professional guidance as prices are expected to eventually normalize.

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With the 2021 calendar changing from June to July, aviation’s year of economic recovery was already half over, and if the current state of the pre-owned aircraft market is any indication, that recovery is showing a healthy rate of climb as the industry and aviation community ascends out of the depths of the COVID-19 pandemic.

The comparisons of the pre-owned market to the red-hot US real estate market are many, with lower inventories and higher demand driving up prices. Anyone that has tried to buy a home recently would recognize the pre-owned aircraft market as being equally competitive, with cash offers beating out buyers who wish to finance their next airplane. This surge has aircraft brokers like David J. Fill II, president and CEO of Fill Aerospace Solutions seeing a significant uptick in activity as 2Q21 ends.