Leasing vs Buying
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Leasing vs Buying
I have a kind of idea of the advantages and disadvantages of leasing vs buying aircraft in regards of airlines, but when it comes to private flying I am not so sure any more...
Any ideas?
ZN
Any ideas?
ZN
Join Date: May 2003
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Lots of ideas!
In the UK you will be restricted to whatever the local flying school has to offer, which will probably be a tired C150 or PA28. The other major issue will be availability, especially if you want to do longer trips away.
From the poitn of view of shear economics, rental will be cheaper than buying unless you are doing lots of hours, and most people fly fewer hours than they imagine they will. For those that can truly afford it cost is only a small part of it as the advantages are what people are prepared to pay for, the main one being that you get to fly what you want when you want to.
How much are you willing to pay for that?
In the UK you will be restricted to whatever the local flying school has to offer, which will probably be a tired C150 or PA28. The other major issue will be availability, especially if you want to do longer trips away.
From the poitn of view of shear economics, rental will be cheaper than buying unless you are doing lots of hours, and most people fly fewer hours than they imagine they will. For those that can truly afford it cost is only a small part of it as the advantages are what people are prepared to pay for, the main one being that you get to fly what you want when you want to.
How much are you willing to pay for that?
Last edited by Justiciar; 17th Jan 2013 at 12:34.
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Do you mean renting vs owning? I seem to remember that the break even when I did the calculations couple of years ago came around 40-50hrs/year. If you fly less than that, then rent. If more, then own. This is in pure financial terms. Other considerations, the access and use to your own plane at any time - priceless. Just try to book a one week holiday with a rental plane from a club in the summer and see how well that works.
Last edited by AdamFrisch; 17th Jan 2013 at 15:20.
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Leasing / renting will be an aircraft on a c of a. If you do not need a c of a and can operate on a permit the brake even could be quite low. I have a friend who is hour building in a single seat LAA machine which cost him £6k. He will probably sell it for £6k and in the interim it is using 10lph of mogas an hour, £600 ish per year maintenance and £1000 per year hangarage. Brake even point assuming £120 per hour for hire is around 15 hours and that is outright ownership!
Rod1
Rod1
An old but mostly true saying:
As a married aircraft and boat owner, I should know!
If if flies, floats, or f&cks, its cheaper to rent.
Last edited by Mariner9; 17th Jan 2013 at 19:59.
Overall I've payed much less per hour over 23 years in a Jodel DR1050 group than to rent. That includes ALL I've payed to the group over the years. Even when it was on a C of A I payed much less. I average well over 50 hours per year.
When we've had a spell with no aircraft, I've investigated leasing. No way would it be affordable for our group of 6. Leasing needs more use than buying to make economic sense - which is why schools etc use it.
When we've had a spell with no aircraft, I've investigated leasing. No way would it be affordable for our group of 6. Leasing needs more use than buying to make economic sense - which is why schools etc use it.
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ha ha ha!!
If if flies, floats, or f&cks, its cheaper to rent.
Last edited by ecosse; 17th Jan 2013 at 21:01.
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Rent or buy (a share)
Depends what aircraft you look at. My break even point was 12 hours per year. At the time I joined, monthlies were £65 and hourlies £30 wet. There were no additional maintenance costs due to the way in which the group was run. To hire a tired old Cessna was £95 per hour. So exactly the same if doing 1 hour per month. The Cessna had to booked well in advance and you couldn't turn up short notice and take it just because the weather was good. Plus taking the shared aeroplane away was much easier (no minimum hours), and there were ready-made flying buddies. Buying a share in an aeroplane made flying much less expensive, much more available and much more fun.
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To tell the truth if I buy, it will not be a fraction, but the entire a/c.
I agree that getting a fraction would be cheaper, but considering that I am moving quite often, it would be difficult in many cases to go each time to group base.
I have not clear idea of the break even point, it will depend on the a/c I will eventually buy. What I know for sure is that I want a machine with CoA...
I agree that getting a fraction would be cheaper, but considering that I am moving quite often, it would be difficult in many cases to go each time to group base.
I have not clear idea of the break even point, it will depend on the a/c I will eventually buy. What I know for sure is that I want a machine with CoA...
