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Though not as prevalent as in the auto industry, the leasing of smaller general aviation aircraft is becoming more commonplace. Leasing offers several potential advantages over purchasing: - Leasing eliminates difficulties or risks that may be incurred when reselling an airplane that you own. Most lease agreements offer the choice of either purchasing the airplane or returning it to the leasing company at the end of the lease term.
- Leasing permits more accurate financial planning as to the ongoing monthly and yearly costs of the airplane. Also simplifies tax calculations since there is no depreciation schedule involved, just a fixed monthly cost.
- Since leases typically require less in upfront costs as well as lower monthly payments, it may be possible to afford a more capable airplane while leasing as opposed to buying.
As an example of the leasing terms commonly available in the general aviation piston market, here are a few bullet points directly from a recent Cirrus brochure: - Flexible aircraft usage “ from 200 to 750 hours per year
- As low as $0 down
- Terms ranging from 24-84 months
Whether leasing or purchasing is the best option for an individual or a company can only be determined on a case-by-case basis, but it does offer an alternative means of acquiring a brand new airplane. |
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