August 31, 2021  ·  Chad Anderson

The trade-in transaction

By Chad Anderson, President, Jetcraft

In private aviation, the decision to upgrade or replace an aircraft has traditionally required an owner to sell their asset to fund their purchase, a process that often takes months and involves considerable downtime on the ground. Trade-in transactions, on the other hand, provide a swift, and seamless alternative, where the broker or dealer accepts a client’s current aircraft in exchange for another. With a trade, the owner simultaneously transitions into ownership of their new aircraft, eliminating the risk of holding and selling their asset and avoiding a costly crossover period.

Reducing transaction time and complexity

A trade-in transaction essentially combines two events – the aircraft sale and purchase. There is only one contract, and an aircraft owner will deal with one invested partner for the trade, rather than two disconnected parties with bilateral interests. Importantly, the pre-buy inspections will also occur at the same time.

As we emerge from the impact of the Covid-19 pandemic, our current focus is to reduce the timeframe in which an aircraft transaction is executed. With a trade, and a devoted player handling both the buying and selling, the timeline can be cut in half. At the time of writing, the fiscal year end in the United States is fast approaching, offering another reason to consider the benefits of a trade-in transaction.

Trades in a low inventory market

Worldwide, pre-owned inventory is at the lowest level for 30 years. When supply is this low, trade-ins offer one of the easiest and fastest ways for business jet owners to upgrade their aircraft and react to today’s rapid transaction pace. We’re currently seeing the heaviest demand for new airplanes in the Americas, with aircraft often being sold before they officially hit the market. It’s important therefore to broaden your gaze, reviewing options from international emerging markets to widen the pool in which to trade.

At Jetcraft, we offer clients complete confidence that due diligence has been carried out on their next aircraft, wherever it is from, through our rigorous program of pre-buy inspections, maintenance and title checks, and registry transfers. With a trade-in transaction, the complexity and burden of purchasing an aircraft from overseas is removed.

Choose a trusted partner

For decades Jetcraft has served as a trading partner for the world’s Ultra High Net Worth Individuals (UHNWIs) and public companies. Our deal resume has been established by equitable business practises, our financial strength and diverse credit lines which enable us to offer generous trade-in terms. With a global team across the Americas, Asia Pacific, Russia, Europe, the Middle East and Africa, we’re able to identify opportunities for our buyers and sellers, giving them an edge in today’s market.

The key to a successful trade is to choose a partner that is neutral and objective, with the unique ability to take in trades for a broad range of aircraft models. To find out how Jetcraft can support your next transaction contact us at [email protected] or +1 919 941 8400.

Minneapolis, MN, US

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