The real question related to buying a new passenger jet is not how much the plane costs, but how big a discount can the buyer expect. The answer, as always, is, “It depends.” But a good rule of thumb for finding the starting point of negotiations is to divide the list price by two.
According to aircraft valuation firm Collateral Verifications (CV) in a post at the AirInsight website, a 787-9 Dreamliner from Boeing Co. (NYSE: BA) has a market value of $142.8 million. That represents a discount of 46% from the plane’s list price of $264.6 million.
But the plane may be selling for even less than that. Leeham News said on Monday that the most commonly quoted sales price for a new 787-9 is $125 million, with a smaller 787-8 going for $110 million, a discount of nearly 48% from the list price of $224.6 million.
The top price for a new 787 is set by the top price for a used version of the plane. For a 787-9, CV shows a minimum used price of $119.6 million and a maximum price for a used copy of $142.8 million. The 787-8’s used price ranges from a minimum of $83.71 million to $117.07 million.
24/7 Wall St.Lease rates have also dipped. CV shows that lease rates on a 787-8 now range between $800,000 and $1.05 million a month while lease rates on the 787-9 range from $1.1 million to $1.25 million a month. Leeham noted that lessees with good-to-excellent credit ratings could see lease rates as low as 0.75% of the market price on a 787. That would amount to about $940,000 a month.
AirInsight’s Addison Schonland notes:
The 787s are going at less than 50% off list. Given the recent commentary about Boeing never being able to recover from the 787, one might want to reconsider. Demand exists, especially for the -9. It prices well for Boeing, especially when you look at the Airbus competitor [the A350-900]. Some customers are willing to pay a relative premium for the aircraft.
The most heavily discounted Boeing plane, according to CV, is the 737-700, which lists for $80.6 million and sells for around $35.3 million, a discount of just over 56%. The 777-300ER lists for $339.6 million and has a market value of $154.8 million, a discount of more than 54%.
Take Charge of Your Retirement In Just A Few Minutes (Sponsor)
Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s made it easier than ever for you to connect with a vetted financial advisor.
Here’s how it works:
- Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
- Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
- Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.
Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.