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
Posts: 479
By: datafuser - 24th June 2008 at 07:52
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