After years of speculation, we now have a glimpse of the modernized SR platform, boasting jet-level avionics, safety enhancements, and a revamped interior experience. While some hoped for specific features, we believe Cirrus has unveiled a true winner with the G7.
The introduction of the Generation 7 Cirrus raises several questions regarding its impact on the preowned market. At Aerista, we’ve carefully analyzed key factors shaping the market dynamics:
1. Price Difference and Perceived Value:
The G7’s price is approximately 8% higher than the last G6s delivered in 2023. The impact on prices of G6 and earlier segments hinges on whether the perceived value of G7’s upgrades surpasses this difference, influencing the price gap between G6s and G7s.
2. Scarcity and Availability:
The scarcity of G7s will play a pivotal role in determining their preowned market value. As more G6s are sold by buyers of G7s, the availability of more used G6s than normal may initially exert downward pressure on prices.
3. Supply Dynamics:
Historical data suggests that the G6’s introduction in 2017 did not cause a significant decline in G5 prices. However, with an estimated 600 Cirrus planes set for delivery in 2024, the supply of used G6s might surpass typical years, affecting their market prices.
Aerista anticipates immediate pressure on late-model G6 prices due to increased supply. However, the positive reception of G7 and its inherent scarcity may support G6 prices in the long run. Our analysis suggests that any G7 entering the preowned market is likely to command premium pricing, potentially widening the price spread between G7s and G6s.
Learning from History:
Drawing parallels to the G6 introduction in 2017, the G5 market did not experience a substantial decline in prices. As shown in the chart below, annual price changes for G5s during 2017-2019 were only marginally worse than the previous generation (G4/FIKI-era G3s).
On balance, Aerista’s view is that the introduction of G7 will put some immediate pressure on late-model G6 prices, offering G6 buyers opportunities to take advantage of excess supply. Once the majority of supply is absorbed, however, the market balance should return and, with it, price integrity.
At Aerista, we go beyond speculation, relying on data and market insights to navigate the ever-evolving aviation landscape. For a deeper dive into the marketplace or to obtain an estimate of your aircraft’s value, connect with us directly. Visit the AeristaMetrics section on www.aerista.com to explore the data we gather for a better understanding of the aviation marketplace.
As the aviation community eagerly awaits the arrival of the Generation 7 Cirrus, Aerista stands ready to assist you in navigating the dynamic preowned aircraft market. Whether you’re looking to buy or sell your aircraft, our team is here to provide personalized assistance and valuable insights. Reach out to Aerista today.