Corporate Aircraft Sales and Leasing Basics
Examine the industry basics to make an informed corporate aircraft sales and leasing decision
Corporate airplanes not only serve as company status, but also help you recruit new employees and make travel much more convenient. Whether it's corporate aircraft sales or leasing there's fundamental aspects that govern each type of expenditure. Corporate aircraft sales and leasing basics are important because for most companies this is major expense. If you don't understand these corporate aircraft sales and leasing basics, it can lead to overpaying or getting stuck in unfavorable lease contracts.Anytime you commit to a corporate aircraft leasing or purchase agreement, you need to understand market conditions and other business alternatives. There's also the balancing act of shopping for the best pricing structure without sacrificing safety. After all, no amount of money can compensate for aircraft reliability. Therefore, before you make any decision, there are few basic items to consider, such as:
1. Contact corporate aircraft sales departments to learn the basics of buying an airplane.
2. Compute the financing implications of leasing purchasing corporate jets.
3. Examine the full benefits of corporate aircraft leasing.
Evaluate purchase quotes from corporate aviation companies
When you begin the process of leasing or purchasing an aircraft, there's a basic process to undertake. First, you need to determine what the price of the airplane might be and what your company's needs are in relation to that. Next, there are the specific factors, such as comfort and financing that influence the specific buying decisions. Finally, you need to determine which model of aircraft has the best safety history.
Try: Submit a sales information form to Avicor Aviation to determine the cost basis of the airplane. Use the purchase tutorial for an airplane from eBuyingGuides to establish a shopping strategy, including affordability, inspection of the aircraft and the purpose of buying or leasing a plane. Visit the airplane safety website AirSafe.com to determine which aircraft model is best in regards to safety issues.
Obtain financing information for corporate jets for sale or lease
Most companies can't afford to pay cash for a corporate jet. Therefore, knowing the basics of financing this purchase is essential. You'll need to determine what interest rates and down payment options each financing company offers and how that works within your budget.
Try: Contact the legal financing department at Chapman and Cutler to represent your company during the purchase or lease. If you have a legal department in-house, you can contact the GE Capital Solutions, Corporate Aircraft finance department directly for flexible corporate aircraft financing solutions.
Compare corporate jets for lease to those for purchase to determine the best route for your company
Another basic issue of this decision is whether to lease or purchase the aircraft. Obviously, leasing is less expensive, but you also don't have the corporate jet available at all times. There's also the fact that leasing gives you no equity in the airplane. Either way, both have their pros and cons, your specific business situation will determine the best option.
Try: Evaluate the lease terms available at JetLease to learn the basics about lease agreements including some of the pros and cons. Decide which option is best for your company by using the leasing guide at Global Plane Search. This site details some of the good and bad points of leasing, chartering or purchasing an aircraft.
- Before you sign any contract to purchase or lease corporate aircraft have a contract lawyer evaluate the agreement. While most corporate jet sales companies are reputable, they may not always have your best interest at heart.
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