Leasing years

[tacsniper]

Just wondering is there any advantage for leasing an aircraft long term? It seems to have no effect on the price. If someone can point out the pros/cons that would be greatly appreciated.

[Echoco]

not sure about used aircraft the price might not change, at least not that i've seen but new aircraft are slightly cheaper in long lease.

[Talentz]

Hmm if your talking about used market.. then leasing longer means you keep that rate longer..

Basically, everyone time you "renew" a leasing contract.. it goes up. Always.. plane could be 30yrs old.. the montly lease payment will go up once u "re-lease" it.

Though were talking maybe a few extra 1000s of dollars.. but still, after a lease is over and you want to re-lease it.. you'll end up playing a higher-then-before monthly fee.


Now.. if your leasing new. Longer the lease, more of a discount you get and overall cheaper lease. Though, being stuck with an aircraft for 7 years can be a problem. After 7 years... theres almost always better equipment to do the job fast/more efficient ect.. So .. make sure you plan for that. Also, canceling a 7 year contract = millions of dollars.. also keep this in mind. 


Hopefully, this helps.