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The Market for Existing Airplanes

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Gemini Sparkle

Key Takeaways:

  • Airplanes should be termed "existing," not "used," due to their durable, long-life nature and comparison to real estate rather than automobiles.
  • Existing general aviation airplanes have significantly appreciated in value since the mid-1970s, often exceeding their original new price in dollar terms.
  • This value retention and appreciation are attributed to the rapid inflation of new airplane prices and the mature technology of piston/turboprop aircraft, which limits obsolescence.
  • Like buildings, airplanes maintain their value through component replacement (engines, interiors) and technology upgrades (avionics), rather than being deemed obsolete or "junked."
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I don’t like the term “used” or “preowned” applied to airplanes. Those are standards of the automotive industry, and airplanes and cars have next to nothing in common.

The best way to describe an airplane that isn’t brand new is “existing.” That’s the term typically applied to buildings. They are either new or existing. You don’t buy a used house, for example. You buy a new house or an existing house. And airplanes have almost everything in common with buildings and real estate but very little similarity to cars and other vehicles.

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