The Case for Upgrading a Gulfstream G550 to a Gulfstream G650….now !
A number of Gulfstream G550 owners have contacted Aviatrade in recent weeks to enquire about our client’s June-delivered, 2017 Gulfstream G650, currently for sale.
As we have written previously, these same G650 enquirers also reveal that they have spoken to the OEM (Gulfstream) with regard to the Gulfstream G650’s delivery availability from the factory.
Apparently the latest news is that Gulfstream can provide a 4th quarter 2018 G650 delivery at around $63MM. We say ‘around’ because a lot will depend upon the negotiating skill of the buyer and the required options package…(up until a few weeks ago, it would have been a 3rd quarter 2018 delivery)
Our client’s G650 happens to be the only 2017 model,brand new G650,currently available for sale and is outfitted with an additional $1.2MM of factory options. The tastefully-appointed custom interior and custom exterior design were also additional costs of completion. We highly doubt that Gulfstream’s $63MM buy-in will include the foregoing upgrades.
It seems that the discussion re. the pro’s and con’s of this upgrade opportunity really centers around the expected further depreciation of Gulfstream G550 values over the next twelve-fourteen months (depending upon exactly when in the 4th quarter 2018 the next OEM G650 can be delivered). Aviatrade believes that the upcoming Gulfstream G500 deliveries and continuing erosion of G550 prices justifies a move into our client’s G650 and that a G550 ‘upgrader’ (or Global 6000, Falcon 7X etc) should jump on this opportunity.
Based on current downward pricing movement of G550, Global 6000 and Falcon 7X, etc., between now and (say) December 2018, these owners can expect to see sale prices (actual selling prices, as opposed to the somewhat meaningless asking prices) drop by an additional $2MM…minimum.
…guess what…our client’s Gulfstream G650 current pricing and immediate availability will mitigate that value erosion and Aviatrade can guarantee a speedy sale of any high-quality ultra-long range aircraft, especially G550.
Any G550 owner should also be concerned that Gulfstream will probably discontinue the Gulfstream G550 (much like the G450 discontinuation) when the eagerly-awaited Gulfstream G600 approaches entry-to-service…especially if G600 sales are sluggish, in which case, the OEM will want to limit the aircraft model offerings and channel would-be G550 buyers into the G600.
I suppose one could argue that waiting for the OEM G650 delivery will ensure ideal cosmetic/aesthetic appeal, however our client’s Gulfstream G650 was outfitted with universal cultural appeal in mind and boasts the perfect long-distance travel configuration.
So, perhaps our ultra-long-range aircraft rationalizing might strike a chord with owners of G550, Global 6000, Global Express XRS, Falcon 7X/8X etc., who are weighing options in the G650 marketplace.
Our client’s G650 is available for viewing in the UK at Hurne Airport, Bournemouth… deck chairs, warm blanket and ice cream on the beach are complimentary.