I have never seen this happen before but a plane that i was leasing for around 300k per month automatically renewed but at a much higher monthly rate, over a million now per. You would think that you should get a warning when your lease rates jump that much? Has anyone else noticed this?
if you renew manually you're shown the new price before you click "renew".
But yes prices can go up, they'll broadly follow the used market. So if you're seeing plane X getting more and more expensive on the used arket then the odds are the renewal lease price will reflect that.
Simon
Yes i understand about renewing manually. I just had never noticed auto renewals jump so high. Especially for models there are plenty of on the UM.
Quote from: Maxair on March 09, 2021, 07:41:32 PM
Yes i understand about renewing manually. I just had never noticed auto renewals jump so high. Especially for models there are plenty of on the UM.
it is annoying, yes - but realistic, that lease prices change with time. usually never down though, only up ;)
Unless the human broker vastly overpriced the bird at first, you took it for 6 months, and then renewed it at a much better price.
(I've been this broker, more than once). ;D :(
The automatic renewal happens at the new market price for that renewal time, so it's usually always more than what you initially paid for.
Another thing to note is that automatic renewal issues only a 1-year renewal. Short leases are significantly more expensive than long deals, so it's worth checking these manually.