Buy an airplane?
If you are thinking you might buy an airplane, this may be a good time to get serious. Besides the fact that spring always seems to bring out more buyers it also seems like the market is “right” for buying an airplane. By “right” it appears that in today’s economy you can buy some airplane models and probably be able maintain their value or even make a few bucks over the next couple of years. I’m not saying buy new, but good used popular models.
Anyway, I have been involved in the aviation market for a number of years. I can remember when buying an aircraft (especially a Cessna 172 or Cherokee Archer etc.) was almost a guarantee to make money. Used airplane prices were always going up. Of course, there were years of high gas prices or high interest rates which had major impact on prices. And then the crash in the in the 2006 – 2007 area where prices went lower than 1995…
But, recently it looks good again. I was researching aircraft prices for a recent Cessna Owners and Piper Owners Magazines article where I was discussing how to value your aircraft. Personally, I like to use VREF as a pricing guide and included a recent graph in my story of the light single engine market prices. See the graph below.
Take a look at the 3rd quarter of 2016. The single engine market started an uphill run and doesn’t look like it will slow down. It looks like if the economy keeps up the momentum, maybe we can get back to the peak prices we had back in 2000 – 2001.
Of course don’t forget to get an insurance quote from SkySmith for the airplane you are thinking about buying! Click here to get a quote!
