Discover the trends that allude to why now is the time to buy a private aircraft.
What does the aircraft market look like today?
Everflight's owner and founder, Randy McGehee, explains that the aviation acquisition market has taken off like never before post pandemic. And while the aircraft prices have risen 30 to 50 percent in the last three years, they have more recently found a plateau. Low inventory levels and supply chain lags have left the aviation industry with only a handful of new aircraft available to purchase worldwide, causing the prediction of the national aircraft prices to hold within the higher regions for coming months. While this may deter some clients from purchasing an aircraft at this time, those who do acquire an aircraft in this market may see their asset appreciate like never before.
Trends that are attributing to the market.
The leveling of the aircraft market is connected to the idea that many sellers have entered an era of price discovery as NEW buyers are wanting to purchase aircraft for the convince and flexibility of flying private and are willing to pay more for these luxuries. These trends are also a result of the imbalance between the aircraft industry’s supply and demand. The ratio of the current aircraft supply levels compared to the historical supply levels are 1.5/10, meaning buyers will need to wait for inventory to build back up and sit on the market before they will see a decrease in aircraft prices.
What steps should buyers take at this time?
Everflight and MPIJet representatives highly encourage prospective aircraft owners to begin the process of locating and purchasing an aircraft sooner rather than later. Why? The aircraft market is expected to rise once again after the current recession passes. In addition, end of the year tax burden may increase the demand for private aircraft to reduce tax impact. It should also be known that acquisitions made within this year are subject to 100% aircraft depreciation as mentioned in the Tax Benefits of Owning a Private Aircraft blog. However, it is expected that 100% depreciation will last only through 2022.
Given this double incentive, aircraft owners can receive excellent tax benefits by purchasing an aircraft prior to the end of the year. While these market trends are highly educated predictions, it is important to note that every individual’s financial position is different. We encourage clients to consult with their tax advisors to determine if taking advantage of this year’s unique depreciation laws is right for them.
How should buyers begin the aircraft acquisition process?
It is highly advised that prospective buyers begin the aircraft acquisition process by defining their purchasing intentions. For example, are you gathering information or are you ready to purchase? From here, MPIJet and our experienced private aircraft acquisition resource, Everflight, will begin the tedious process of finding you the aircraft that fits yours needs.
Why buyers should purchase an aircraft with MPIJet.
While the aircraft acquisition process takes time, discernment, and accurate aircraft knowledge, it does not require brokers or sales teams to have any form of certification or degree. Knowing this, individuals are frequently taken advantage of by unaccredited people and businesses. When clients begin the acquisition process with MPIJet, they are guaranteed top-of-the-line service and guidance from MPIJet’s valued partners and one of the industry’s most recognized aircraft acquisition companies: Everflight.
How can MPIJet and Everflight help save buyers money? Our teams grant buyers access to both national and international aircraft markets, giving clients the ability to review ALL available aircraft. While the international aircraft market is less competitive, it does take greater discernment and effort to bring the asset to the states. Fortunately for MPIJet clients, Everflight has ample experience with overseas acquisition and can place buyers ahead (price wise) while taking care of all the inspections, evaluations, and registrations required for a safe and legal process.
Who is Everflight?
Everflight is a sales and acquisition company that aims to create a frictionless transaction for every client. Randy McGehee is the company’s president and bases his success off his commitment to making the process a relationship-based endeavor that will add value to the client’s purchase. The company aims to respect all forms of customer involvement in the process as it will gladly educate its clients on the market and (1) keep them updated on every aspect of the journey or (2) allow the buyer to take the backseat and receive notice when a suitable aircraft is available. Whichever the case, Everflight’s ability to provide maximum satisfaction to its clients is backed by many valued and satisfied buyers.
Not only can MPIJet connect you with partners like Everflight, but they can also provide you with management, maintenance, and charter services that will help you maintain the value of your new aircraft and offset costs. By choosing to embark on the aircraft acquisition process with MPIJet, clients can expect a professional and smooth journey towards acquiring their private aircraft.