The aircraft sales industry experienced one of its deepest declines ever during the second quarter of 2008 when the economy was plummeting. Though the marketplace has recovered significantly, a fundamental shift occurred in the economics of purchasing an aircraft, and buyers now place greater emphasis on estimated future values and an overall operating budgets, asthese elements have a larger impact on overall cost of ownership more than in the past years.
Despite the explosion of information readily available online and changes regarding the manner in which corporate jets and business aircraft are bought and sold, the value of professional aircraft brokers may well be greater than ever before. Working with an aircraft broker during the purchase and sale processes or when working with private jet leasing and finance companies can bring many advantages to the table.
Privileged Information & Analytical Skills
The proliferation of easily accessible and widely available information has completely revolutionized the world, including the business of aircraft sales. Contrary to the belief that online resources make aircraft brokers obsolete, the trend has actually enhanced the value of most professional aircraft brokers.
While the mass of information makes it possible for almost anyone to find available aircraft and financing options, it is brokers who have the expertise, skills and judgement to know how to pick out the important details. Brokers know that there’s much more to worry about than just which aircraft and the cost, but that there’s many technical aspects that come into play regarding the purchase, lease negotiations, ownership and operating experience.
Financing Options
Working with an aircraft broker also brings the benefit of a variety of financing options. Instead of investing your time independently checking with several lending institutions, one call to an aircraft broker can open the doors to a wide array of financing options and providers.
A seasoned broker typically brings with them their experiences and relationships specific to the purchasing of aircraft. Their jobs rely on finding the best aircraft and financial packages for the purchaser. They can be effective in negotiating for lower financing rates because they already have excellent relationships with a range of lending institutions, credit analysts, insurance agents and title companies and are up to date on the latest trends and rates.
Insight into Economics of Purchasing
When the recession changed the industry in 2008 and beyond, aircraft buyers started looking more closely at what the investment would bring them in the long run. Calculating the ROI of an aircraft investment is best done by someone who knows the ins and outs of the industry: the aircraft broker. A qualified aircraft broker doesn’t just provide an analytical eye to the mass of information, but also has access to a broad spectrum of marketplace research that examines the future value and operating budgets of each aircraft.
Working with an aircraft broker gives the purchaser the benefit of understanding the overall cost of ownership by breaking down factors that might affect value like regulatory changes, executive jet management and in-service solutions, international operations and a myriad of other elements that contribute to the ownership.
Cost-Benefit Analysis to Meet Specific Needs
An aircraft broker can work with the client to come up with the typical mission of the client (average distance flown, number of passengers, domestic or international, size of cities visited, etc.) and find an aircraft that suits them at a cost effective price. Jets come in various sizes and especially for first-time purchasers, navigating the aircraft sales industry can be a complex and confusing process.
The broker will help conduct a specific cost-benefit analysis for the purchaser that takes into account what the plane will be used for and how often, whether buying new or used is more viable in the long term, and other key factors. For those looking to sell rather than purchase, the broker is also the most knowledgeable person to go about developing a sales strategy.
Convenient and Time Saving
During the search and purchasing process, choosing to work with an aircraft broker is a convenient way to save time. It is unlikely that a buyer will be as efficient as an experienced aircraft broker. Trying to sift through piles of information and handle financing options alone is possible, of course, but the time and energy the interested purchaser will put into the process will far exceed what an aircraft broker would have to do to acquire the same of better information. This time and energy would far better be spent dealing with critical business matters while the aircraft broker leverages their skills, knowledge and experience on the buyer’s behalf.
Global Jet Capital can help connect aircraft buyers with experienced and reputable private jet brokers. Offering a wide range of aviation finance and leasing products, Global Jet Capital delivers custom-tailored solutions for your company’s private jet financing needs. Find the perfect private aviation financing solution to help keep your business soaring above the rest and contact Global Jet Capital today.