Changing an order's advance payment

[ScottPerchard]

Hi,

I am just wondering if this is normal...

I wanted to change the amount I have paid in advance for my aircraft from the minimum 20% to 100% but cam up against an odd pricing.

Original order:
On order 6 225 100 USD 
On delivery 24 844 390 USD

Once changed to 100%:

Price to be paid now: 43 038 830 USD
New price on delivery: 0 USD     (-24 844 390 USD)

So it's changed the original lower price I ordered $31m to the current pricing $50m. 

Seems a bit off to me! offering to pay earlier surely doesn't incur that sort of penalty does it?

[Infinity]

That's normal, and since cash is not the taxation parameter anymore there is absolutely zero sense in paying up advance payments to 100%. Just sit on the cash till the plane arrives and take if to the lower, older price.

[schro]

Any time you change your order, your pricing will be readjusted to the current market prices and you'll likely lose your volume discount. Therefore, yes, you will be paying gobs more for planes by doing that, especially in GW1 where inflation is sky high right now. You're fiscally better off just to keep the money in the bank until they deliver.

The only case it might make sense is when the list price of the plane is declining, typically when inflation is low and the type is becoming less popular (and that you haven't bought on volume).

[ScottPerchard]

Cheers,  that helps clear up why it happens.

[pascaly]

That's normal, and since cash is not the taxation parameter anymore there is absolutely zero sense in paying up advance payments to 100%. Just sit on the cash till the plane arrives and take if to the lower, older price.

Having been gone for nearly 18 months now, if cash isn't used to calculate tax, what is used now?  I'm assuming this means we won't see huge ordering at the end of December every year   

[Infinity]

I'm assuming this means we won't see huge ordering at the end of December every year   

Exactly, taxation is now calculated in a normal non-cash accounting way. Tax evasion impossible.

[slannoy]

Having been gone for nearly 18 months now, if cash isn't used to calculate tax, what is used now?  I'm assuming this means we won't see huge ordering at the end of December every year   

Income tax is computed based on your income. You can see it at the bottom of the income satement. Tax planning is useless in AWS current version.