Twin market collapsed?

[Vik]

I recently was told by the President of a bank that does aircraft loans that they don't loan money for twins any longer because the "twin market has collapsed."

Since I haven't been shopping for an airpline for long, I'm curious to find out why the twin market has collapsed? If it has collapsed, there must be some great deals out there and banks should want to get back into the game right? After all, prices can't continue to fall indefiniately.

For those of you that look at used airplanes, especially twins, and have looked at them in the past few years, have prices fallen a lot?

 

[Timebuilder]

Well, AOPA is giving one away this year, but I'm pretty sure that's not a related development.

The person may have been making a reference to the rising cost of insurance, making the aircraft too expensive to operate and driving down their market value as a result.

A while back, a Navajo operator I flew for sold both of his chieftains when his insurance agent said his quote would double in the next two years, placing him somewhere around $30,000 a year for coverage. Who knows what it would be right now?

 

[C601]

twin market

vik,

All i can say is that right now the market is over saturated in many types of aircraft, just look at the Kingair market, its really a buyers heaven alot of great deals right now.

Just to give you an example 1983-5 Challenger 600 corporate jet in 1998 you could not touch one under $10million, we turned one away for less then $5million, not all aircraft have had there value reduced, but when you have alot of the same type of aircraft have been put up for sale and there very few buyers out there, thats when you see people desprate to sell for lot less.

Supply Vs Demand 101

 

[Vik]

Yeah, I noticed that. I'm in the market for a Twin Comanche and of course the first month everyone wants an ungodly price but after a few months they're down to what I believe is a good deal.

I've seen a plane go from $119k down to $90k now. I'll of course offer only $75k.

My favorite part is that tax season is around the corner. I've been told is a good time to buy because people will sell their planes before car or home to pay taxes.

Thanks for the input.

 

[N49185]

My favorite part is that tax season is around the corner.
Thanks for the input.

Actually It has been tax season for a little while now.

 

[Vik]

Well, you know what I meant. Taxes are due in April...

 

[AeroDMB]

Well, you know what I meant. Taxes are due in April...

don't forget bonus depreciation works for used aircraft as well, just not as accelerated as purchasing a new bird. In the end, the same amount can be written off for new and used...correct me if I'm wrong any tax buffs.

Seneca market is flooded, can get them pretty cheap.

 

[Vik]

I'm going after a Twin Comanche. I'd like to go at a reasonable speed, not burn a lot of fuel, and build some quality twin experience. Can't beat a Twin Comanche and right now there are tons on the market and no buyers.

 

[46Driver]

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