Acquiring a private jet, preowned or new, for your personal or business use is a big commitment. Whether to buy or lease can be a complex decision in its own right. Although each option has benefits, it’s important to choose the right plan for you and your business.
One of the best options is purchasing with cash. It’s immediate: You don’t have to wait for financing, there aren’t any financial contingencies, and businesses won’t have debt to disclose.
However, cash isn’t a possibility for many individuals and businesses. And even if the cash is available, you may not want to invest that much all at once. Typically, you’ll need to decide between leasing and financing an aircraft.
Advantages of leasing and buying
For those who dislike surprises, there are many advantages in leasing a jet:
- A lower up-front cash requirement than traditional financing
- Fixed monthly payments and predictable maintenance costs
- Flexibility, especially when you need to switch to a different aircraft (larger, smaller, newer)
- No residual value risk
Purchasing a jet through financing has its own set of benefits:
- As the owner, you can recoup the residual value.
- Businesses can often benefit from claiming depreciation as a tax deduction.
- You build equity as you pay.
- If your aircraft will see heavy use, buying makes more financial sense than a leasing plan that may cost more for frequent fliers.
- Joint ownership opportunities can be an option.
For buyers, preowned jets are a great option because they come in at a price point that is a much lower than new. At the same time, a private plane will not lose value quickly, so a preowned jet can be a great investment.
When you purchase a jet, rather than leasing it, you are investing in your own asset rather than just handing over money to someone else. All these factors mean that a preowned jet purchase is a great financial and business decision that is far more accessible than you may think.
Guidance for making the right choice
All that said, this decision is best made with the guidance of an experienced professional advisor. With a general understanding of your needs and financial goals, a professional can help you weigh factors such as expected use and selecting the ideal make and model. When you have an experienced partner, you can have confidence in your decision about whether to lease or buy your private aircraft.
Contact L & L International if you need assistance in purchasing or selling a private jet. You can reach our sales specialists today at sales@L-Lint.com, call us any time at +1.305.754.3313, or visit us online.