In Part 4 of our special COVID-19 Adam Answers series, Adam answers questions on the impact the pandemic has on approval and funding timelines.
Question: How has the timeline to get approved and funded changed?
Answer: Approvals usually take only 24-48 business hours. However, during this COVID time, because of strong demand as well as limited staffing at the lenders these times can sometimes be twice as long. Fundings are also taking longer but the primary reason is that coordinating work on the aircraft, logistics of the closing with the buyers and sellers is frequently taking a week or two longer.
Question: What does inventory look like right now for single engine pistons, turboprops /turbine and light jet aircraft?
Answer: Inventory for s/e piston is very tight. As an example, in looking at 3 of the largest online aircraft listing services, there were only 13 late model 182s for sale (2005 and newer) in all of the U.S. The turboprop segment has more inventory but is still fairly tight. As an example, newer late model TBMs has 8.7% of the fleet for sale (per AMSTAT). Similarly, the Citation M2 market is even tighter with 6.6% of the fleet for sale. We are seeing that buyers who aren’t paying cash or pre-approved for their loan are losing out to those who are.
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