Bizjet Values One Year Later

Based on our tracking, the average business jet is worth 11.4% less than one year ago. However, some categories have performed better than others.

The largest business jets, like the Gulfstream G650/ER and Global 6000, have suffered 2.5 times more depreciation than small and light jets like the CJ3/+ and Phenom 300. Here’s how we see the category specific performance since March 2020:

Small / Light (CJ3/+, CJ4, Phenom 300, XLS/+, etc.) -6.5%
Super Mid (CL300/350, G280, Legacy 500, etc.) -12.6%
Large (F2000EX family, CL605, Falcon 900EX EASy/LX, G450, etc.) -15.2%
Long Range (G650, Global 6000, G550, etc.) -16.3%       

Here’s some historical perspective. Following a lousy 2016, market depreciation stabilized from mid-2017 through the end of 2019. In fact, inclusive of 2020, we still see average annualized depreciation since the beginning of 2017 at about -6.5%, some 2% or 3% below the longer term market averages. So one could speculate that the market had some pent-up depreciation looking for a place to happen. 

The result of these lower prices** is that 2020 concluded with an absolutely bananas 4th quarter for transactions. Inventory in 1Q 2021 is dramatically different than it was 6-months ago. 

We’ll take a closer look at that next week.

Have a great weekend.

**(along with tax benefits, elections, stock markets, new travel sensibilities, or who knows what else)