If you’re looking at buying your first aircraft or upgrading the company jet, now is a good time to check out the pre-owned market.
FLYING Finance believes we might be finally reaching an eventual equilibrium in price and availability of pre-owned aircraft after the surge of pandemic-era demand spikes, and there’s been a notable shift in inventory levels. Used business jets inventory, for instance, increased by 7 percent year over year as of January. This growth is beginning to stabilize, though, with a 1 percent decline in March compared to April.
Several underlying factors are driving sustained interest in the pre-owned market, particularly for first-time buyers and cost-conscious corporations. Here are the top five reasons to look for a pre-owned aircraft to finance at Aircraft For Sale:
1. Cost
It should go without saying, but one of the primary advantages of financing pre-owned aircraft over new ones is cost-effectiveness. Acquisition cost for pre-owned jets is always going to be significantly lower than it will be for a comparable new aircraft. Outside of niche models that are out of production and have developed collector status, used aircraft are less expensive than new models, even when tariffs are applied upon importation.
That price difference lets you invest your savings into upgrades or maintenance back into the pre-owned aircraft and usually have something left over to put into your business or other investments.
As we’ve talked about in this column, pre-owned aircraft are increasingly being sold with modernized avionics, enhanced interiors, and improved fuel efficiency, making them highly competitive. Owners are investing in retrofitting older jets with advanced features. If you know how to do any retrofitting yourself or find a tastefully upgraded example, you can really stretch the bang for your buck.
2. Lower Depreciation Rates
If you’re looking at your aircraft as any kind of investment at all, depreciation is one of your chief considerations. Whether it’s a hobby vehicle or a business need, you’ll eventually need to face the cost of depreciation. As with almost any other product, new aircraft go through a steep depreciation curve as soon as you sign the paperwork, and that rate more or less continues in the first few years of ownership.
If you’re buying a pre-owned aircraft that’s even a few years old, in contrast, that asset has already been through the bulk of its devaluation. Pre-owned jets retain their initial purchase value much better over time. Depending on your use case, that means you’ll have a much more predictable return on investment.
3. Financing and Tax Incentives
Interest rates play a significant role in the decision-making process for financing aircraft. Recent discussions in the industry suggest that potential rate cuts by the Federal Reserve could spur more investment in pre-owned aircraft due to favorable loan conditions.
Additionally, legislation like the One Big Beautiful Bill Act (OBBBA) could further incentivize pre-owned purchases through 100 percent first-year bonus depreciation, significantly reducing the tax liability for buyers of business jets (and, in turn, increasing demand and therefore market value of certain pre-owned models).
4. Variety and Availability
The pre-owned market offers a broad array of aircraft models that are readily available with no waiting periods. Especially since pandemic demand surges, new aircraft manufacturing has not kept up with demand.
Supply chain and production issues have led to longer and longer wait times for buyers over the past few years. If it’s a business purchase, that massive delay in deployment might not be an option for you.
The pre-owned market’s diverse inventory means you’ll have plenty of options tailored to your specific needs, even if you’re not ordering custom options from the manufacturer.
5. Proven Performance
Pre-owned aircraft come with established performance records. With any complex machinery, whether that means vehicles or industrial equipment, designs that have been consistent over years and use proven designs are well understood in terms of maintenance and lifespan.
Since many general aviation models tend to remain mechanically unchanged for decades at a time, there’s plenty of data available to delineate the aircraft with the lowest costs of ownership and best track records for reliability.
You can never guarantee maintenance costs for pre-owned hardware of any kind, but almost any pre-owned aircraft is going to come with extensive records (and if it doesn’t, don’t bother).
Visit FLYING Finance today and we can help you pick out a pre-owned aircraft that best suits your needs and budget.
