Gulfstream G650 Recent Market Movements
The last weeks of 2016 and the first weeks of 2017 have seen relatively strong activity in the G650 sales arena.
Two G650’s changed hands in the latter part of 2016, one 2013 model (Aviatrade’s client) and one 2014 model. With an official inventory of only eight G650’s for sale, this was a significant movement, especially since the 2014 G650 was an off-market sale. The January 2017 activity of one 2013 Model G650 is not closed yet, but an LOI has been signed.
The prices of all three transactions are in the $49-$53 million range. Aviatrade can provide details to any G650 buyer who might want to leverage crucial pricing and availability information.
Nosing into 2017
The high-end (late model) of the Gulfstream G650 and G650ER available inventory is not fairing quite so well. The problem is that at least two of the offerings (a 2016 G650 and a 2016 G650ER) appear to be trying to recoup (or close to) purchase prices….this is not going to happen in today’s sale environment.
These owners don’t seem to realize that the competition for their sales is Gulfstream itself. Aviatrade is aware that Gulfstream is offering a first quarter 2018 G650 at circa $65.5 million. Granted there’s a one year wait for delivery and this price doesn’t include options or PPA, but this competition for buyers seems not to be registering with these late model G650 and G650ER sellers….this is especially relevant since we have now rolled into 2017.
Basically, it is still a buyers’ market for this and similar type aircraft however, this is primarily a function of buyers being reluctant to commit to an acquisition, as opposed to there being any issues with the supply of the Gulfstream, Falconjet or Bombardier product line, at this level.