Starting around 2001 the values of general aviation aircraft began a long slow appreciation that had previous never been experienced. This trend continued into 2008 where the values of most aircraft were just crazy! Supply was at an all-time low and values hit all-time highs. It’s generally agreed the market for both new and pre-owned corporate aircraft effectively crashed in 2008. Much like our 401(k) and home values, the values of corporate aircraft continued to decline right into the present time.
The concerning trend is in the light and medium jet market segments that lie between the turboprops and large cabin aircraft. Again, with the exception of some specific models like the Cessna Citation CJ3 and CJ4 and Challenger 300 we’ve experienced minimal customer interest and therefore poor demand. There are so many great aircraft that lie within this segment; the Beechjet 400A, Lear 45 & 60 and Citation Excel as examples, yet for whatever reason the values are either flat or continuing to decline.
The good news is that general aviation lending seems to be reemerging with competitive rates and terms. Consumers now have options and the lenders seem eager to loan money for corporate aircraft again. With the stock market achieving new highs and reports of residential real estate showing signs of growth, one can only wonder if general aviation aircraft aren’t starting that long slow trend of increased values and reduced inventory like they did from 2000 – 2008.