Brian Proctor: “There has never been a better time to buy a jet”

Brian Proctor from Mente Group says that there has never been a better time in the history of business aviation to buy a jet at CJI London 2018.

The US tax reform is driving values lower, with a 21% corporate tax rate, 29% effective rate pass-through, and a 100% depreciation in the first year – if the plane is used mostly for business – creating an ideal market to purchase an aircraft – Proctor claims.

Proctor said that the business aviation market is finally turning the corner, with aircraft of all size and age selling, with a boom in the newer aircraft market. As such, we are seeing more demand and activity in the market, with the G550 and Challenger 300 markets falling in price making them better deals for the buyer than ever. There has been a 15.1% price reduction over the last few months.

Despite the falling prices, Proctor expects jet prices will start increasing in the third quarter of 2018, making the next few quarters the best time to convince potential buyers to buy, before prices are set to increase.

Forward thinking

Proctor’s summary was that there never been a better time to buy, that the market will be in full swing in Q3, and that the industry should be focusing on a new era of market efficiency moving forward.

Many buyer’s first experience in aviation is with pre-owned aircraft brokers, with 1,000+ brokers without centralised standards. Most customers assume there is oversight and “hidden money” in a transactions.

National Aircraft Resale Association (NARA) wants to raise awareness and profile of the broker professions, increasing standardisation (with a focus on ethic, contractual and certifications reforms).

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