Asset Insight, a valuations, audits, analytics, and consulting firm that produces reports on the valuations and marketability of business class aircraft, has released their Q2 2020 Asset Insight AI2 Market Report. The report shows a “considerable” drop in the asking price of many preowned aircraft during Q2 2020, while stating that “days on market” increased as much as 54 percent for some aircraft in the same time period.
Asset Insight Q2 Report: Drop in Business Jet Prices
Key Takeaways:
- Asset Insight's Q2 2020 report reveals a "considerable" drop in asking prices and increased "days on market" for pre-owned business aircraft, attributed to the COVID-19 pandemic.
- The tracked inventory of aircraft for sale increased 8.2% in the first half of 2020, with significant year-to-date price decreases across all categories, including large jets (-9.6%) and small jets (-8.8%).
- Despite an overall increase in "days on market," a slight improvement in the Maintenance Exposure to Ask Price Ratio (ETP Ratio) enhanced inventory marketability, though high ETP Ratio aircraft remained on the market 54% longer.
- The report suggests that the current market, characterized by good quality aircraft and increasing activity in late June, presents a potential opportunity for buyers.
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