What is the Bizjet Buzz Market Index?
Market experts are forever asked one question in particular.
Are we in a Buyer market or a Seller market?
Who has more negotiating power?
If a seller has four offers at ask price on his/her aircraftâĻthatâs a great position to be in. Not for the Buyer though, who is competing in a busy market, a sellerâs market. The Seller has the power.
If a Buyer knows theyâre the only offer on a jet and theyâve several alternative options they can pivot to, thatâs a great position to be in. Sellers must concede on price or terms to keep the Buyer in tow. The Buyer has the power in this case
Understanding these market dynamics is essential when youâre buying or selling a jet.
You must negotiate and behave according to the market youâre in. If you donât, you risk leaving money on the table or attempting to pull too much from and in turn killing your deal.
So how do you know if youâre in a Buyer market or a Seller market?
Itâs all about Supply and Demand - We need to know how many aircraft are transacting and how quickly theyâre being replaced on the market.
If pre-owned jet inventory is dropping, this means demand if greater than supply, this would be a Seller market and vice versa.
The Bizjet Buzz Market Index is function of transactions and available inventory, calibrated over the last 40 years of market data.
This is what it looks like..
You can see the following jet market cycles going back to 1985:
1990 - Gulf War Recession
1999 - Dotcom Bubble
2008 - Global Financial Crisis
2022 - The Great Pandemic Induced Bizjet Boom (which never resulted in a crash)
Are we in a Buyer or Seller market today?
As of June 30th, the index read 2.9.
A lot of transactions in June to kept us firmly in a seller market.You can read the index as follows:
-7.5 and below - Strong Buyer Market
-7.5 to -2.5 - Buyer Market
-2.5 to 2.5 - Balanced Market
2.5 to 7.5 - Seller Market
7.5 and above - Strong Seller Market
