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If a Farmer Has Too Few Tomatoes to Sell, He Does Not Need a Bigger Truck...

If a Farmer Has Too Few Tomatoes to Sell, He Does Not Need a Bigger Truck...

NAFA member, Joseph Carfagna, Jr., Partner, President & CEO of Leading Edge Aviation Solutions, discusses corporate aircraft.

I am not the only aircraft sales professional you have heard talk about the iconic decrease in supply of pre-owned corporate aircraft.  But why do we think we are here, and where do we think things may be headed? Let’s discuss & add up all of the ingredients…

  • A strong stock market for a long time
  • Unprecedented low interest rates (not for long now)
  • Loads of new wealth that has been created in recent years
  • The global pandemic
  • Big tax incentives (which are scheduled to begin rolling back after 2023)

This all adds up to a frothy mix of ingredients that have caused this shift.

We now know that approximately 30% of all pre-owned corporate aircraft sales in 2021 were to first time buyers. This is a huge factor – first time buyers do not have an aircraft to sell before buying another.

In sum, corporate aircraft have become like oceanfront Palm Beach real estate – hard to find, and you will pay a premium to get the one you want. 

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This article was originally published by Leading Edge Aviation Solutions on February 16, 2022.