Seizing Opportunity: Why Now Might Be the Perfect Time to Acquire a Pre-Owned Gulfstream

Seizing Opportunity: Why Now Might Be the Perfect Time to Acquire a Pre-Owned Gulfstream


March 20, 2024


Ben Dow, Senior Managing Director, Large Cabin Aircraft Specialist

In the world of large cabin pre-owned Gulfstreams, trends and market fluctuations can present both challenges and opportunities for prospective buyers and sellers. Recent data points indicate that now might be an ideal time for those considering the purchase of a Gulfstream G550 or similar aircraft to make their move. With inventory up, asking prices down, and a historically slow period approaching, the conditions are ripe for savvy buyers to take advantage of the market dynamics.

Data indicates an 18% increase year-over-year of pre-owned Gulfstream G550s for sale. Although slightly alarming at first, this healthy supply in inventory offers buyers an exceptional selection to choose from, increasing their chances of finding the perfect aircraft to suit their needs.

In addition to the increase in inventory, asking prices for Gulfstream G550s have experienced a decline over the same period. What was once an average asking price of nearly $21,000,000 has now dropped to just over $19,000,000. This downward trend in pricing provides an attractive opportunity for buyers to potentially acquire their desired aircraft at a more favorable cost.

Furthermore, the time on the market for Gulfstream G550s has seen a significant uptick, with a 23% increase year over year. This means that aircraft are staying listed for approximately 35 days longer than they did a year ago. For buyers, this extended time on the market could translate to increased negotiating power and the potential for securing a better deal on their purchase.

Taking a broader view of the market, the period from July 2023 through September 2023 saw a notable decrease in aircraft closings per month. This trend, which has been observed over several years, aligns with the historically slower summer months for transactions within the aviation industry.

Adding to the current landscape is the delayed entry into service of the Gulfstream G700, the highly anticipated new offering from the Savannah-based OEM. While the company had initially aimed to deliver approximately 15 G700 aircraft in 2023, various technical issues and certification delays with the FAA have led to an elongated entry into service timeline. However, the first G700s are soon to be in the hands of customers, which could trigger several dynamics within the market.

Historically, the introduction of a new aircraft like the G700 tends to impact its predecessors, such as the G650, G550, and G450, in several ways. Some owners of the new G700 may struggle to sell their current aircraft, leading them to reduce prices significantly in hopes of facilitating a sale ahead of their new delivery. Others may choose to list both their current aircraft and their newly delivered G700 for sale simultaneously, allowing them to keep whichever sells first. Additionally, some owners may choose to immediately list their brand-new G700 as soon as they take delivery while withdrawing their current aircraft from the pre-owned market altogether.

Considering these conditions and market shifts, there is a compelling opportunity for acquisition clients to pursue pre-owned long-range aircraft or even consider investing in a brand-new model in the coming months. Coupled with the historically slow summer period for transactions, prospective buyers are presented with a trifecta of favorable conditions to capitalize on if they are in the market to purchase an aircraft.

If you own a G450, G550, or G650 and are considering selling, call us immediately! 

If you own a G540, G550, or G650 and are considering selling, call us immediately. A wait-and-see approach will likely cost you as we are anticipating a downward shift in market values and an increase in pre-owned inventory on the horizon. Conversations need to be happening now to protect as much value as possible in your current asset. With the guidance of qualified model market specialists like jetAVIVA, seizing this opportunity to buy or sell in the current climate could lead to a rewarding decision.

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