Next 12 months 'buyers market' for private planes
January 24, 2011, 03:59 pm
Private pilots interested in purchasing a jet this year may be able to do so at a historically low price, according to The Private Jet Company. However, the prices may only last until the end of the year.
A host of simultaneous factors resulted in the current affordability of private planes, with prices 50 percent lower than in 2008, according to the market research group. An oversupply of planes is one cause, since the demand for private aircrafts reduced as a result of the economic crisis. The company says that buying while inventories are rising and prices are decreasing is the smartest move to provide pilots with the most leverage for getting a low price.
However, the reduction in prices is beginning to slow and the company says this indicates that rates are approaching their lowest point and will soon begin to increase. The growth of inventories is also beginning to slow and interest rates are beginning to rise. Also, an increase in corporate and private buyer demand, which the company estimates will be in full effect by the end of the year, should drive down plane affordability.
Pilots considering buying a plane should also look into pilot insurance to protect their family should they be involved in a fatal accident.
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