These are the dominant factors currently shaping the pre-owned jet landscape
The used private jet market in 2024 is seeing significant shifts, particularly for medium-to-large-sized business jets. Due to both economic factors and evolving legislation, the market presents both opportunities and challenges for buyers and sellers alike.
While demand for private aviation remains strong, the market’s dynamics are always shifting. That’s why you need a trusted advisor who stays up-to-date with the changes.
At Global Air Charters, we specialize in airframe acquisition. If you’re thinking about purchasing a pre-owned business jet, we recommend assembling the right team of experts to help navigate the transaction. Contact us today to gain greater insight into the private jet market.
Jets Still in (Relatively) Short Supply
The private jet market experienced a sharp increase in demand during the pandemic. Therefore, the market saw a surge in first-time buyers. Many of them opted for medium and large business jets to accommodate long-range travel needs and family comfort.
As a result, the available inventory of jets hit a near all-time low in 2022. Even though supply has ticked up since then, it remains at roughly half pre-pandemic levels. Manufacturers are still slow to work through their backlogs of new jet purchases, exacerbating this short supply.
Bonus Depreciation Sundowning
An earlier incentive for jet purchases came in 2017 with the Tax Cuts and Jobs Act (TCJA). This legislation included provisions that allowed buyers to claim 100% bonus depreciation on new and pre-owned aircraft. This created a surge in demand for both new and used jets in the years following its passage.
However, starting in 2023, this bonus depreciation has begun to phase out — only 60% is allowed in 2024. This reduction in depreciation benefits has made some buyers more cautious about making large purchases.
Prices Are Coming Down
The unprecedented demand resulted in record prices for used jets at the beginning of 2022. But now, as supply is inching back up towards its historic levels, demand for private jet purchases is easing back down. This is being driven by a leveling off in demand for private air charter from its pandemic-spiked record highs.
These forces have resulted in heavy jet prices slightly declining since 2023. (Or to put it another way, stabilizing to a more rational pre-pandemic state.) For example, the value of a Gulfstream G450 in 2024 is now slightly less than in 2019.
Some Buyers Set to Take a Loss
It turns out that some buyers may have entered the market too quickly in 2022. Many were lured by bonus depreciation, a feverish bull run on prices, and the promise of thousands of new charter clients.
But now that the market seems to be slowly correcting, these buyers are meeting the reality of jet ownership. The cost of jet maintenance is rising, due to material prices, labor shortages, and supply chain disruptions. Crew salaries are rising quickly as well.
As operating costs increase, it puts pressure on sellers of older jets to either price more competitively or invest in upgrades to make their aircraft more attractive.
These rising costs and falling prices are especially problematic for customers who financed a majority of their jet purchase in 2022. These investments, depending on their depreciation strategy, could be millions of dollars underwater by now.
This is just one of the many pitfalls in buying a private jet that we can counsel prospective buyers to avoid.
Which Brands Lead the Heavy Jet Market?
Certain manufacturers are outperforming others in the used jet market, particularly those that offer a strong combination of range, luxury, and resale value. Gulfstream and Dassault are usually cited as the two top performers, with their large-cabin jets (the G650 and Falcon 8X, respectively) experiencing strong demand. Their long-range capabilities, high-end interiors, and relatively low operating costs compared to their competitors make them perennially popular.
Used Private Jet Market 2024
In 2024, the used private jet market for medium-to-large business jets remains dynamic. While legislative changes, sustainability concerns, and shifting economic factors are all at play, the demand for high-quality jets is still strong.
As the market slowly returns to a more familiar equilibrium, patient buyers with a good long-term strategy will be rewarded. Contact our airframe acquisition experts today for more advice on entering the market.
