If you are interested in flying a private aircraft, either for your business or for personal use, then you will want to consider whether you want or to purchase the jet outright. Much like leasing or purchasing a vehicle, there are a number of pros and cons associated with buying versus leasing.
The major advantages of purchasing an aircraft is that the owner can customize the jet with their personal colors and customize the interior to their liking. Also, purchasing the jet allows the owner to own the aircraft for a long time, thus ultimately lowering the cost of ownership. Additionally, an aircraft owner can lease the jet to earn extra income. Finally, the purchase of an aircraft means that there is no hourly usage or milage restrictions. The downside to a jet aircraft purchase is that it requires a huge capital outlay or the ability to lease a major portion of the aircraft’s purchase price. Currently, a customer can choose to purchase a jet aircraft from the manufacturer, from a dealer or through a private sale.
The upside to leasing an aircraft includes a lower overall cost of ownership and the ability to consistently upgrade to a newer aircraft every couple of years. The major downside to leasing an aircraft is the inability to customize the jet and the restrictions of hourly usage. Currently, a customer can lease a jet aircraft through a dealer or through a private owner.
When it comes to leading versus purchasing an aircraft, the potential customer must ask themselves a series of questions before making a decision. The first question the potential customer should ask is how many hours the aircraft will be up in the air. If the potential customer wants to use the aircraft for more than 100 hours per year, then purchasing may make more sense. Secondly, the customer must consider their own financial situation. If the customer has to finance more than 85% of the purchase price of an aircraft, then it will be better to lease. Finally, the customer must consider their future needs of an aircraft. If the customer is considering the purchase of a light jet aircraft, he will have issues if he suddenly needs a larger aircraft. Therefore, a customer who purchases an aircraft should be comfortable with the size and the features of that jet for at least five years.
The acquisition on of a jet aircraft may be one of the largest purchases an individual or a company may make. Both the purchase and the lease of an aircraft have their advantages and their disadvantages. A potential customer should consider their annual hourly requirements for the aircraft, their current financial situation and their long-term needs before making a final decision.