Ratio of lease/purchase

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18 years 10 months

Posts: 479

Among various options of buying/using a Cessna 172 or Cirrus Design SR22, how many percents fall under each category below?

The options I know are:
- Outright purchase: you pay the whole cost of the aircraft upfront and own it
- Loan/purchase: you borrow money to buy the aircraft and offer it as collateral on the loan
- Operating lease: you pay the leasing company to use the aircraft for a certain period of time and return it at the end of the lease
- Financing lease: you borrow money to lease the aircraft on condition that you buy it at the end of the lease
- Synthetic lease: something between the operating lease and financing lease

A law firm has a neat summary of the above options at http://www.coolinglaw.com/AIRCRAFT%20FINANCING%20OPTIONS.pdf

Sunho

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