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Finance: Current affairsFinance: Current affairs

How is the coronavirus affecting used aircraft prices?

As of this writing,the coronavirus pandemic has not resulted in any measurable decline in used aircraft prices. That’s not to say it won’t over time, but in the near term, prices are holding steady.

Why aren’t we seeing values trending lower? Despite being blindsided by the consequences surrounding the coronavirus pandemic, the aviation market was already in a unique situation because inventory was pretty thin. Traditionally, when supply is constrained, market pricing will stay roughly the same. That holds true now, despite any drop in demand that we may be witnessing.

While the coronavirus pandemic might spur some people to sell, as of yet there’s been no noticeable uptick.
Even fewer owners are listing airplanes right now. There is so much uncertainty surrounding the ability to close deals (financing, the logistics of inspections and aircraft delivery) that folks are more comfortable sitting on the sidelines than taking the risk of losing out on a deal.

While the coronavirus pandemic might spur some people to sell, as of yet there’s been no noticeable uptick in these situations. AOPA Aviation Finance is working on a deal right now with a pilot/owner who’s trying to close on a TBM turboprop, but such transactions are rarer than they are regular.

The bottom line is if you’re thinking this might be a good time to pick up something cheap, our answer is, it’s always worth looking—but the markets are efficient and the professionals in the industry help to keep it that way, so you’ll have to look hard for those gems. AOPA

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Adam Meredith

Adam Meredith

President of AOPA Aviation Finance Company
Adam Meredith, President of AOPA Aviation Finance Company, is an aircraft finance professional with more than 15 years lending, small business management and customer service experience. Adam is a commercial pilot with multi-engine and instrument ratings.

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