Buying out a Lease

[WesternU]

I tried to search for an answer, but came up empty.  When buying out a lease are you paying the current value of the plane, plus all remaining lease payments or just a percentage of the lease payments?  Thanks.

Best regards,
WesternU

[Sami]

Part of it, I guess it was 50%. I think the particular page even says that there?

[blair21088]

Actually the page that comes up when you buy out a lease doesn't specify the percentage and somewhat implies that you pay the value of the aircraft plus the entire cost fo the remaining lease.

[swiftus27]

Sami, you pay 1/2 when you cancel a lease.

You pay 100% + purchase when you buy out a lease.

[WesternU]

Thanks guys. 

So it seems that there is no real advantage to buying out your lease, unless you are looking to create an asset for a loan or increased company value.  In fact, it seems the only thing you will save on is insurance fees, if you minimize the coverage.  I guess it is also possible to use the asset now as collateral for a loan to purchase another plane if the loan payment ends up being less than the lease payment on that plane, which helps to offset the cost of buying out the lease.  Also sounds like a lot of work.