Thursday, January 5, 2017

Used G650 Inventory Declines, along with Prices

The inventory of pre-owned Gulfstream G650s/650ERs has been steadily decreasing since supply peaked at 21 aircraft for sale during the first quarter of last year, according to the just released fourth-quarter market report from Gulfstream broker Hagerty Jet Group. Over the past two quarters, supply has decreased to 12 aircraft for sale, representing just 5.4 percent of the fleet.

“What’s interesting to note is the lack of like-new or ferry time aircraft for sale,” the broker noted. During the peak supply, there were at least eight G650s for sale with ferry time versus just two at present. Many of the G650s now for sale are older models with higher time, “and there seems to be a lack of demand in the pre-owned segment,” the company said.

In fact, 10 of the 13 G650/650ER transactions last year were for ferry-time-only aircraft, Hagerty Jet noted. As a result, older pre-owned G650s are sitting on the market for 314 days, up from 209 days in the company's last market update. Because of this, asking prices are falling and Hagerty Jet believes those for older G650s will dip into the mid to upper $40 million range within the next 120 days.

(Chad Trautvetter - AINOnline News)

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