Finally some good news to report to Cirrus owners about the values of their aircraft J
We are seeing a nice stabilization of the used market after several months of rapid decline we are leveling off.
The initial panic of some sellers having to sell yesterday is not there any longer and there are fewer aircraft on the market that just have to sell, this has helped prices stabilize.
Another factor is that sellers are calling in wanting to sell and when they are not getting the price they had hoped they are just keeping their beloved Cirrus. So there are fewer aircraft on the market.
Buyers are buying if the aircraft is priced correctly they are selling within a reasonable time frame 30-60 days.
Everyone always asks both buyers and sellers how can I optimize/leverage my situation. For it is realizing that it is VERY unlikely that anyone is giving their plane away (most of the time if planes are too undervalued Dealers are buying them to protect the used market then offering them for resale). If you would have told me a year ago that a 06 GTS with A/C and under 300TT would sell for under $300K I would have said you were crazy. So buyers need to realize that they ARE getting an awesome value already!
Buyers need to also understand that there is a huge difference between SOME asking prices and selling prices but not ALL. Here we choose to price our planes at very close to what they will sell for (since we sell so many of these) it is very easy for us to know what they will sell at, as it is my firm belief that what someone is willing to pay is the TRUE value of the market.
Also understand the difference between the true value of some included items. (i.e extended warranties, training, delivery etc). We choose not to include these items in our pricing so that buyers can determine what is best for them.
So my honest though is that if you are going to buy BUY NOW!
SELLERS the key point to selling your aircraft is to be realistic in the pricing of your plane.
Marketing your aircraft in the correct places is also vital to selling your aircraft quickly. Overseas transactions are on the rise and being able to leverage these buyers also is vital to obtaining the best overall price for your aircraft.
I do not see the values of these aircraft increasing anytime in the next 2 years, so if selling is on the horizon for you it is better to sell sooner rather than later especially if you own a model that is newer and already depreciating.
Sellers who are stepping up to a new aircraft, if you want the overall BEST deal for your aircraft we have found that even after paying sales commissions clients are saving on average 20-25% on the purchase of their new aircraft by NOT trading their current aircraft in. Going into negotiations on a new aircraft without a trade in is where you have the most overall buying power we have found.
Cirrus controls the used single engine piston market, they are the best value hands down on the market so it is wonderful news that these planes are leveling out and stabilizing. J
So overall good news for Cirrus owners……
This has been the best month ever for sales in the history of Steel Aviation, I am very proud of my staff we have worked hard to make it happen. We have completed a ton of on and off market deals and the month is not even over.
If anyone has any further questions or you need currently values of your aircraft please call our office, or send us an email. We will sadly not be at Migration this year. I have a herniated disk in my neck that has taken forever to track down (long story) but we will not be there this year.
I recently had a crack in my crankcase under parts only warranty and opted for a new engine rather than repair mine which had >1200 hrs on it so the value would hold for when I plan to sell it in 1-2 years.