With four new listings in the last 35 days, Falcon 2000LXS inventory now sits at seven units. That’s 7.7% of the roughly 90 aircraft delivered and the highest inventory level since the program was introduced. Deliveries first begin in 2013.

 

The LXS has always been on the periphery of the used market. Other than one brief period in 2018, there have rarely been more than one or two for sale at any given time. Arguably not enough to develop a mature and tested market price level in relation to other comparable models.

 

The most interesting comparable model is the LXS’ own predecessor, the Falcon 2000LX. According to our tracking, over the past four years the LXS has traded at a 10% to 20% premium to the LX after factoring out age.

 

The main difference between the two: the LXS has better takeoff and landing performance by virtue of adding full-span leading edge slats. A valuable feature- but is that single capability alone worth up to 20% of the value of the entire airplane?

 

While LXS inventory is building, inventory of the LX and its predecessor, the Falcon 2000EX EASy, is LOW. Only 11 units including just 4 factory labeled LXs built after 2008. This is not a new trend- the LX in particular has been one of the strongest performing large cabin models over the past two years.

 

With such low inventory it’s obvious to speculate there is unsatisfied demand that may be tempted to step up in $$ for a used LXS. But we continue to see buyers function with discipline and patience. And as of today, a jump to the LXS involves crossing the mentally crucial $20M price threshold.

 

So, it will be interesting to see if LXS price levels are affected by this surge in supply and a potential reverse auction into the top of the LX market. Or, perhaps the ratio holds, and pushes LX prices down? We will, needless to say, be on the edge of our seats with anticipation.