First, the trade group began capturing monthly data about the pipeline of used aircraft transactions. Its 46 accredited dealers account for 40% of worldwide pre-owned private jet sales. Secondly, the data is revealing a market that is bouncing back.
From a low of 100 Closed Deals during April and Bay, during September and October, the number more than doubled to 228. For Under Contract, which means a signed purchase agreement since the last report, deals increased from 126 during the first two months of the tracking to 219 over the past 60 days.
Joe Carfagna Jr., IADA’s chairman, told attendees, “Look at the difference between the numbers in April and May… compared to September and October.”
He added, “My hunch will be November’s numbers will make October’s numbers look small.”
Deals that Fell Apart, transactions that were canceled after having a signed letter of interest appear to have stabilized. And despite the number of transactions has doubled, fewer owners are lowering the price of the aircraft they are trying to sell. From a high of 46 price cuts in May, there were only 19 in October.
There has also been a sharp upturn in New Acquisition Agreements, climbing from 27 in April to 56 in October. The same is true for Dealer Inventory Purchase Agreements, the number of deals a broker made with sellers to purchase aircraft from their own inventory. After being in the single digits April through June, they have been in double digits since July.