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Author Topic: Lease vs Ownership  (Read 1264 times)

Offline MidlandDeltic

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  • Posts: 225
Lease vs Ownership
« on: July 26, 2010, 07:11:58 PM »
Hi All

Fianlly getting towards the stage where I can afford to buy rather than lease aircraft (or at least but out the leases!).  However, before I do so, could anyone advise are there any cost negatives to owning rather than leasing aircraft?

Obviously I will avoid the lease charges, but will also have to allow for depreciation in order to replace in the future, but are there any other maintenance / insurance additional costs in ownership?

Thanks in advance for any comments.

Regards

MD

Offline swiftus27

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Re: Lease vs Ownership
« Reply #1 on: July 26, 2010, 08:08:58 PM »
Well, you better be prepared to do at least one D check... but that's about it.

Your insurance is a ton cheaper.  In the end you pay for a leased plane in about 6 years or so (sometimes a lot longer).

Offline CVACEO

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Re: Lease vs Ownership
« Reply #2 on: July 26, 2010, 08:10:32 PM »
Hi All

Fianlly getting towards the stage where I can afford to buy rather than lease aircraft (or at least but out the leases!).  However, before I do so, could anyone advise are there any cost negatives to owning rather than leasing aircraft?

Obviously I will avoid the lease charges, but will also have to allow for depreciation in order to replace in the future, but are there any other maintenance / insurance additional costs in ownership?

Thanks in advance for any comments.

Regards

MD

Personally, I am a huge proponent of owning rather than leasing your a/c.  You not only "stop the bleeding" on leases but also on insurance (because you are only required to carry minimum insurance on owned a/c).  You also get to access much greater credit for loans if you own at least a few of your a/c.

As far as a downside to owning - you can't "dump" an owned a/c that's coming up for major maintenance like you can with a leased one so you will need to plan on those maintenance intervals ... and owned a/c are not always easy to sell on the used market - particularly late in a game scenario.

Offline CUR$E - God of AirwaySim

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Re: Lease vs Ownership
« Reply #3 on: July 26, 2010, 08:52:03 PM »
I'm not in the Modern Times, but I'm sure this is valid for all game worlds;

Is it an aircraft you will for sure fly till the game world ends, purchase it.

Is it only for some years, maybe if a better aircraft is released, then only lease it.

While you can calculate for yourself how long you must operate an aircraft then leasing costs are higher than the purchase costs (there is nearly no interest in AWS!), think about the fact too, that you can't scrap aircraft younger than 20 years.

Offline MidlandDeltic

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Re: Lease vs Ownership
« Reply #4 on: July 31, 2010, 02:42:09 PM »
Thanks Guys.  First aircraft now purchased - but now stuck in my annual C-Check round :(

MD

Offline schro

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Re: Lease vs Ownership
« Reply #5 on: August 02, 2010, 05:09:38 AM »
think about the fact too, that you can't scrap aircraft younger than 20 years.

Actually, the fact is you can't scrap them younger than 15 years unless there's been a change since v1.1.

You can also scrap if condition gets below a certain threshold (i.e. deadbeats lease your plane, don't maintain it and bankrupt sending it back to you). I forget the percentage that triggers this...

 

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