The first quarter of 2017 brings much activity and excitement in the pre-owned Cirrus world. G5s prices should find a floor as G6 lead times stretch; Vision Jet position premiums continue their upward trend, and the good flying weather is back!!
Piston Market Update – Seller’s Market Around the Corner
In our last letter, we provided a chart showing the supply level for each segment of the Cirrus pre-owned market. The feedback we received was very positive – as a group, you asked us to provide that data regularly. That’s what we’ve done, below. Notice the four OVERSUPPLIED segments on the left side of the table: G5 SR22Ts, G3 SR20s and G3 Avidyne (SR22 and Turbo). Not a very pretty picture…for now. While the current supply is heavy, this situation will not last. The new G6 Cirrus has been a tremendous success, resulting in a 6 month lead time for new aircraft deliveries. Once Cirrus sells out of 2017 delivery slots, buyers will most likely turn toward late-model pre-owned aircraft if they want to take advantage of 2017 tax deductions. For those who are considering selling a late-model Cirrus, you may find yourself in a very strong position come summer and beyond.
Vision Jet Market Update – Big Premiums!
The Vision Jet is here…finally! Four SF50s have been delivered and production is ramping up. Aside from the jet itself, the big news is the price sellers are receiving for their positions. Positions below #100 are almost impossible to find at this point and the subsequent premiums for these positions are very high. Our best guess is that premiums will remain high for a while, only facing pressure once pre-owned SF50s hit the market or if Cirrus announces significant upgrades. If you own a position and want to discuss selling it, give us a call. We’ve managed the vast majority of Jet Position transactions, so we have the pricing data you need to price your position correctly