Some of you may have seen our post yesterday regarding our view of the Cirrus market during the COVID-19 pandemic. The summary is that while Cirrus transactions are still happening, the market is moving much more slowly than usual as buyers and sellers try to sort out the impact of COVID on asset values, and on their personal financial situations.
One thing we know for sure is that there are ALWAYS buyers and sellers in the market at some price point, but at times like these the market gets “sticky” and it’s difficult for buyers and sellers to come together to find common ground on pricing.
As professional airplane brokers, it is our job to do what we can to help the market become “un-stuck.” For this reason, and as the leaders in the Cirrus pre-owned market , we are introducing a new feature on the Aerista website today:
AERISTA AIRCRAFT AUCTIONS
The concept is to take a cue from the high-end preowned auto industry (where market pricing is almost always opaque), and provide a safe space for bidders to express their point of view on an aircraft’s value. Lowballers are welcome! But please note that sellers have a vote in this too; at this time, all of our auction inventory will be offered with a set reserve price.
What this IS:
- It is (likely) a temporary solution to a (hopefully) short-term problem with liquidity in the preowned Cirrus market.
- It is a way to reduce friction in the market, and provide buyers and sellers with a mechanism to find common ground on pricing in an uncertain economic environment.
- It is simply an alternative to the traditional price negotiation phase of an aircraft purchase. All other aspects of the transaction, including contracting, due diligence and closing, will remain the same as for a conventional, professionally-managed aircraft purchase.
What this IS NOT:
- It is not an attempt to pass off sub-standard airplanes, Ebay style, on unsuspecting buyers. The airplanes offered for auction at any given time are a representative sample of Aerista’s quality inventory, and all winning bidders will have ample opportunity to inspect the airplane to their satisfaction.
If you’ve been considering an aircraft purchase, we hope you’ll register to bid on our current auction offerings, as well as browse through the Aerista Showroom, where we have the largest selection of pre-owned Cirrus airplanes available anywhere.
Your questions, comments and feedback are welcome. Thanks for participating.