Challenger 300, Challenger 604, Challenger 605
Transactions are slowing and inventory is increasing in the Challenger 300 market. There are currently 25 listings, an increase of 66% over the prior quarter. If we look back to Q2 2018, 20 Challenger 300’s were for sale. Activity is also slowing. Just seven sales in the second quarter, down from nine during Q1 2019. Those combined 16 sales YTD are well behind the 33 aircraft that sold during the first half of 2018. Pricing has yet to be affected by these softening market conditions, and actually showed an increase during Q2 2019. It will be interesting to see how this increase in inventory affects pricing as we head in the second half of 2019. After remaining a seller’s market for nearly two years, the Challenger 300 market might start allowing some good opportunities for buyers in the near future.
After a slow first quarter, Challenger 604 activity ramped up during Q2 2019. Only four aircraft sold during the first quarter of 2019, but that was followed by an active second quarter, which produced 10 transactions. Q2 2018 also produced 10 sales, but due to the slow first quarter, we are still behind last year’s pace of 29 sales YTD. After bottoming out a year ago, Challenger 604 inventory continues to rise. Currently, 22 aircraft are on the market, up from 18 six months ago. This represents 6.2% of the active fleet. Pricing has held steady for over a year now. With strong demand, yet more options to choose from, this market remains balanced for both buyers and sellers.
Challenger 605 activity has slowed and inventory has increased for multiple quarters now. There are currently 19 Challenger 605’s for sale, up from just nine during Q3 2018. 6.6% of the active fleet is currently for sale. Transactions have also come to a screeching halt. After producing just three sales in Q1 2019, only one additional transaction was added in the second. Those four sales YTD in 2019 are only 1/4th of what sold in 2018 by this time. After pricing dipped in the first quarter of 2018, things have remained steady, and have increased for some model years. We are keeping a close eye how these softening market signals will affect pricing as we head into the second half of 2019. With steadily increasing inventory and slowing activity, that perfect Challenger 605 deal might be just around the corner.