18 Apr 2024, 07:46 [ UTC - 5; DST ]
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Post subject: Re: Aircraft inventory levels are critically low. Posted: 08 Jan 2022, 01:49 |
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Joined: 05/23/13 Posts: 6778 Post Likes: +7323 Company: Jet Acquisitions Location: Franklin, TN 615-739-9091 chip@jetacq.com
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The good news is that things seem to have calmed down a little. I’m not saying there’s magically inventory again… and yes, if it’s on Controller it’s probably sold, over-priced or has a story. But, the end of the year rush to pay too much for an airplane because you’d rather give that money to a fellow aviator than the IRS is over. (for now)
The market is still hot, but it isn’t stupid. The last couple of months have been stupid.
Funny story, mid December I look up and say “oh crap, we better buy something quick so we can write it off” in my case it was a company vehicle, but it was humorous and enlightening to experience what my clients feel, no inventory, everything is overpriced. I had to compromise and felt lucky to get what I wanted.
Strange times.
_________________ It’s a brave new world, one where most have forgotten the old ways.
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Post subject: Re: Aircraft inventory levels are critically low. Posted: 08 Jan 2022, 09:45 |
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Joined: 11/08/12 Posts: 12799 Post Likes: +5226 Location: Jackson, MS (KHKS)
Aircraft: 1961 Cessna 172
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Username Protected wrote: They call it a life limit. I thought life limitations were mandatory regardless of the inspection program you are using. Only if it was a life limit at certification. After that you require an airworthiness directive. Otherwise private equity firms could go around buying up type certificates and adding life limits.
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Post subject: Re: Aircraft inventory levels are critically low. Posted: 08 Jan 2022, 10:00 |
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Joined: 06/09/09 Posts: 4573 Post Likes: +3298
Aircraft: C182P, Merlin IIIC
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Username Protected wrote: Thanks Terry!
Not many folks get Mike C. to admit he was wrong!
Thanks Mike for your humility. [youtube]https://youtu.be/WkqgDoo_eZE[/youtube]
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Post subject: Re: Aircraft inventory levels are critically low. Posted: 16 Jan 2022, 00:52 |
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Joined: 05/03/14 Posts: 46 Post Likes: +49
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Now that the end of year tax driven purchases are done. Are aircraft inventory levels still critically low?
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Post subject: Re: Aircraft inventory levels are critically low. Posted: 16 Jan 2022, 10:12 |
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Joined: 05/23/13 Posts: 6778 Post Likes: +7323 Company: Jet Acquisitions Location: Franklin, TN 615-739-9091 chip@jetacq.com
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Username Protected wrote: Now that the end of year tax driven purchases are done. Are aircraft inventory levels still critically low? In a word, yes, there’s still basically nothing for sale, we are seeing airplanes come on the market but most are at prices that would make last December blush. We are at an interesting juncture. The tax factor isn’t (for now) and I seriously doubt people are willing to overpay to the tune of a MILLION dollars, without that being immediately offset by a tax burden. As a result I suspect we’ll see some of these airplanes sit. When that happens it will chill the market, I suspect we’ll see prices quickly retreat to Q3 2021 levels. There’s still very little inventory, some will hope to take advantage of that and will leave the high priced airplanes advertised. It will skew the perception of the average Controller lurker, but be ignored by serious buyers.
_________________ It’s a brave new world, one where most have forgotten the old ways.
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Post subject: Re: Aircraft inventory levels are critically low. Posted: 16 Jan 2022, 21:50 |
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Joined: 03/28/17 Posts: 6677 Post Likes: +8017 Location: N. California
Aircraft: C-182
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Username Protected wrote: Now that the end of year tax driven purchases are done. Are aircraft inventory levels still critically low? In a word, yes, there’s still basically nothing for sale, we are seeing airplanes come on the market but most are at prices that would make last December blush. We are at an interesting juncture. The tax factor isn’t (for now) and I seriously doubt people are willing to overpay to the tune of a MILLION dollars, without that being immediately offset by a tax burden. As a result I suspect we’ll see some of these airplanes sit. When that happens it will chill the market, I suspect we’ll see prices quickly retreat to Q3 2021 levels. There’s still very little inventory, some will hope to take advantage of that and will leave the high priced airplanes advertised. It will skew the perception of the average Controller lurker, but be ignored by serious buyers.
My intuition tells me that some brokers hate Controller......direct sales.
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Post subject: Re: Aircraft inventory levels are critically low. Posted: 16 Jan 2022, 22:35 |
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Joined: 12/03/14 Posts: 19252 Post Likes: +23622 Company: Ciholas, Inc Location: KEHR
Aircraft: C560V
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Username Protected wrote: My intuition tells me that some brokers hate Controller......direct sales. :D No one needs to advertise right now. I get purchase inquiries on my Citation V literally every week. If a plane is advertised, it is either not really for sale or there is something seriously wrong with it. 4th quarter 2020, 27 Citation Vs for sale on Controller.com. Today, only 4 listed, all of which have various issues. Mike C.
_________________ Email mikec (at) ciholas.com
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Post subject: Re: Aircraft inventory levels are critically low. Posted: 19 Jan 2022, 12:11 |
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Joined: 09/02/11 Posts: 1314 Post Likes: +1320 Location: N Alabama
Aircraft: 1968 B55
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Username Protected wrote: My intuition tells me that some brokers hate Controller......direct sales. anecdotally, I can say that there are some sellers and brokers that have gotten lazy in this market environment. There are multiple Barons listed for sale that aren't actually available (because they're under contract) or where queries for things like logs get answers like "the owner doesn't want to provide them, sorry". If you can sell your plane without trying hard, well, some people won't try hard. This definitely makes me appreciate the proactive and honest brokers all the more.
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Post subject: Re: Aircraft inventory levels are critically low. Posted: 19 Jan 2022, 13:00 |
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Joined: 01/13/22 Posts: 1
Aircraft: Pilatus PC12
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Username Protected wrote: Inventory levels are going up!
Lots of airplanes being added to Controller. There’s more new listings in the last week or two then we’ve seen in the last several months.
Please login or Register for a free account via the link in the red bar above to download files.
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Post subject: Re: Aircraft inventory levels are critically low. Posted: 19 Jan 2022, 13:01 |
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Joined: 03/28/17 Posts: 6677 Post Likes: +8017 Location: N. California
Aircraft: C-182
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Username Protected wrote: My intuition tells me that some brokers hate Controller......direct sales. anecdotally, I can say that there are some sellers and brokers that have gotten lazy in this market environment. There are multiple Barons listed for sale that aren't actually available (because they're under contract) or where queries for things like logs get answers like "the owner doesn't want to provide them, sorry". If you can sell your plane without trying hard, well, some people won't try hard. This definitely makes me appreciate the proactive and honest brokers all the more.
I'm curious as to what percentage of sellers would put their aircraft logs in a public domain. My logs are available to anybody interested enough to come see the plane in person, which means prospective buyers would be in a local/regional market when I sell.
I did a lot of looking for my plane in the local/regional market , flying with my A&P to look at planes, but the one I bought I made the deal with the seller that if he flew the plane to my airport for inspection, 150 miles, if I didn't buy it I'd pay his round trip fuel, but I bought it.
We went down to my bank and did the cash transaction, very simple. For an airplane like a 182 or similar single-engine plane , especially models in demand, I don't see the value of a broker, but for more expensive, larger planes probably broker handling is warranted. With or without a broker, a good pre-purchase inspection by a mechanic that knows the type is always a good idea.
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Post subject: Re: Aircraft inventory levels are critically low. Posted: 22 Jan 2022, 16:08 |
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Joined: 03/28/17 Posts: 6677 Post Likes: +8017 Location: N. California
Aircraft: C-182
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Username Protected wrote: My intuition tells me that some brokers hate Controller......direct sales. No one needs to advertise right now. I get purchase inquiries on my Citation V literally every week. If a plane is advertised, it is either not really for sale or there is something seriously wrong with it. 4th quarter 2020, 27 Citation Vs for sale on Controller.com. Today, only 4 listed, all of which have various issues. Mike C.
"No one needs to advertise right now."
In just a few weeks into this year the stock market has nose dived. The "wealth effect" of strong returns and 401k income has reversed , and the negative wealth effect will cause selling in the aircraft market. Then we will see a reverse in inventories and increased advertising.
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Post subject: Re: Aircraft inventory levels are critically low. Posted: 22 Jan 2022, 16:08 |
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Joined: 03/28/17 Posts: 6677 Post Likes: +8017 Location: N. California
Aircraft: C-182
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Username Protected wrote: My intuition tells me that some brokers hate Controller......direct sales. No one needs to advertise right now. I get purchase inquiries on my Citation V literally every week. If a plane is advertised, it is either not really for sale or there is something seriously wrong with it. 4th quarter 2020, 27 Citation Vs for sale on Controller.com. Today, only 4 listed, all of which have various issues. Mike C.
"No one needs to advertise right now."
In just a few weeks into this year the stock market has nose dived. The "wealth effect" of strong returns and 401k income has reversed , and the negative wealth effect will cause selling in the aircraft market. Then we will see a reverse in inventories and increased advertising.
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Post subject: Re: Aircraft inventory levels are critically low. Posted: 22 Jan 2022, 16:29 |
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Joined: 08/14/13 Posts: 6072 Post Likes: +4650
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Username Protected wrote:
"No one needs to advertise right now."
In just a few weeks into this year the stock market has nose dived. The "wealth effect" of strong returns and 401k income has reversed , and the negative wealth effect will cause selling in the aircraft market. Then we will see a reverse in inventories and increased advertising.
Because of a much needed correction? No, that’s not how this works
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Post subject: Re: Aircraft inventory levels are critically low. Posted: 22 Jan 2022, 18:12 |
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Joined: 05/29/13 Posts: 13585 Post Likes: +10972 Company: Easy Ice, LLC Location: Marquette, Michigan; Scottsdale, AZ, Telluride
Aircraft: C510,C185,C310,R66
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Username Protected wrote:
"No one needs to advertise right now."
In just a few weeks into this year the stock market has nose dived. The "wealth effect" of strong returns and 401k income has reversed , and the negative wealth effect will cause selling in the aircraft market. Then we will see a reverse in inventories and increased advertising.
I suspect that may be true for some lower end aircraft. 172's et al. But in general, I think the market remains white hot. Peope don't want to travel commerically and the amount of "new " aircraft is not enough to cover demand. BWTFDIK?
_________________ Mark Hangen Deputy Minister of Ice (aka FlyingIceperson) Power of the Turbine "Jet Elite"
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