Photo: Wikimedia Commons
Once considered a secure and reliable investment, used private jets are nosediving — and we don’t mean literally.
According to a New York Post article, used private jets’ values have plummeted almost 50 per cent because of a lack of demand.
“Private jets had always held their values better than almost any asset class in the past decade, losing only about 2 per cent a year,” Dan Jennings told the Post. Jennings is the CEO of The Private Jet Company, an aircraft broker. “The bottom has fallen out for pre-owned jets and the bargain rush is on.”
Now, used private jet owners looking to sell or trade in are trying to garner buyers’ interest by selling their aircrafts at heavily discounted prices.
Jennings told the Post that foreign buyers — many from Brazil, Russia, India and China — are snatching up the price-chopped private jets.
“Foreign buyers are flocking here and snapping up bargains they never could have afforded just a couple of years ago,” Jennings said to the Post.
Surprisingly enough, there is still a high demand for new private jets. Gulfstream CEO Jay Johnson told the Post that the company currently has $50 billion worth of its 550 and 650 models on backlog.
Obviously, new jets aren’t as cheap. Gulfstream’s 650 model could cost you at least $62 million.
But hey, go big or go home.
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