Will we ever have the ability to buy the aircraft we currently have on lease? the leases payments paid to date could be marked of the market value and the balance is paid.
Buying leased planes is in the list.
However a lease payment does not deduct from the planes value, at any point you wish to buy the plane it would be at market value cause leases are more akin to renting something.
I know by purchasing other equipment, Trucks, Vans etc, if you are purchasing from the leasing companies you have dealt with since delivery, there are term discounts applied to the final sale.
Yeah no, you purchase at current market value. Thats the way it goes. Why would any lesser sell you something cheaper than they could get from someone else?
I vote for lease to own option so when you order a brand new plane to lease you have the option for an actual lease where they give you a term discount and a purchase option at the end of the term for its discount value price. Or when ordering brand new have a lease to own option where you don’t get a term discount and it’s basically just a payment system to buy the plane that way you don’t have to shell out of pocket like when you buy them brand new
A leaser has already made their money on the aircraft as part of the leasing charge, if it is a 3/5/10year term the payments equate to what the cost and associated profits should be.
I don’t think you have understood leasing. You must be thinking of financing. With leasing you only pay the depreciation and the right to use. All leasing (especially at these values) end with Lease extension or purchase. I understand you want cheaper Aircraft, but thats simply not how it works. In fact, the lessor is not even required to sell to you or extend the lease if he wants to lease to somebody else or sell to somebody else.
Purchase after lease is always at Market value at the time you want to purchase it. We may need to look into adjusting depreciation, but certainly not rebates for a “lease”.
Again, if it is still worth 100 million, why would anyone sell you for cheaper. You must be dellusional.
Btw: you may wanna decide on one account to use, someone may get suspicious
Old browser session must have picked up the old details when making the last comment.
In leasing there are two values the Market Value and the Residual value. The residual value is the asset value on the Leases Balance sheet, not the Market value as this can be exploited by market factors.
If it is t reflect real world then this value needs to be taken into consideration, not just the market value.
Residual Value Leasing would need to be a whole lot more expensive than it is right now considering we only have max 3 year terms. (Now besides all this, whats the point? The game is gonna get reset before most leases expire anyway)
For Finance Leasing like that you’re looking at 10 year terms atleast.
Ok so I will admit I was thinking the lease payments were still at like for example 500k a week for a 737 instead of the 500k a month like in real life I was unaware Unk changed it to monthly which as far as I know before the reset it was weekly so I shall back out of the lease to own aurgument lol. But I shall add from my real world experience with the airline I work for the leasing companies want you to keep the aircraft until they become valuable enough to be converted into a freighter so at the airline I work for ever few years they renegotiate the lease on the planes and get a monthly discount on the planes being as the other airlines want new or newer planes so they rather the airline keep them then send them to storage and let them sit till when/if they find an airline that wants the used plane