Coronavirus (COVID-19) has brought much uncertainty to the world and, unfortunately, the future is still unclear. On behalf of the Jetcraft team, I want to personally reassure you that we are in a strong position to remain open for business and we are ready to transact. Moreover, our team is available to help you navigate your important aircraft-related decisions during this period. Here are some of the most popular questions we’ve recently been answering for our clients.
Should I consider an aircraft purchase now?
If you are in the position to do so, absolutely. While these are challenging times, we encourage those who can to take a long-term view and consider aircraft purchases or upgrades to meet their needs. However, it’s important to understand how to maximize your benefits and navigate the current market.
Good quality inventory is becoming available, interest rates are low and bonus depreciation still applies, so there is plenty to take advantage of if this is an option open to you. At Jetcraft, we are well-versed on how to leverage the current market to negotiate the best deal for our buyers.
Minimizing downside exposure is critical for many of our customers. To help mitigate this, avoid holding a second aircraft on your books when upgrading to a new model. Jetcraft is one of few companies with the ability to take in trades, and we can help customers avoid a risky crossover period.
All our aircraft are marketed using the most up to date and highest quality photos and videos and we can facilitate on-the-ground virtual aircraft viewings as needed, while travel restrictions are in place.
I’m not using my aircraft. Will it lose value? Should I sell it?
Not necessarily. Many factors affect resale price. An aircraft’s value tends to diminish the more it flies and the more hours it accumulates, which is comparable to mileage on a car. Engine hours are another contributor, meaning the closer an engine is to its recommended time between overhaul, the less value it holds.
By not flying your aircraft, these factors are put on pause and you may in fact experience a slower rate of depreciation. Aircraft are designed to be able to remain grounded if required. Like other modern vehicles, they will not be majorly affected if not used for a period of months. If properly maintained and hangared, the value can be significantly preserved.
While you’re not using your aircraft, take the opportunity to schedule it in for any maintenance or refurbishments, so it’s in perfect condition for when you next fly. Many facilities remain open and ready to assist customers with their service requirements.
If you do decide to sell, we are well-equipped to match you with buyers around the world through our global network or help you find a maintenance facility to perform upcoming work that could improve the saleability of your aircraft.
Will business aviation remain crucial?
In one word, yes. It’s at times like these where the speed, efficiency, flexibility and safety of business aviation comes to the fore. The ability to fly anywhere at a moment’s notice and get home quickly is proving invaluable. By avoiding large crowds of people and minimizing contact with others, business aviation can help limit the spread of infection for those who must travel.
Sadly, some buyers will be financially impaired by the effects of the COVID-19 outbreak, and yet there will be others who will come through this experience even more convinced of the value of aircraft ownership.
Who do I contact if I have additional questions about my aircraft?
Our Jetcraft representatives around the globe are available to assist you. Contact us for the latest market data, to find out what your aircraft is worth or to discuss your options.
And remember, stop hoarding, wash your hands and cover that cough.
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