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This morning I went to West Valley Flying Club's open house on leasebacks. There were two speakers and one salesguy. As they spent a bunch of time discussing aircraft purchase, ownership, loans, and that sort of thing, it wasn't as informative about the finances of leaseback as I had hoped. Still, I got some sense of the big picture. Some factoids:
1) New aircraft do depreciate right off the lot, just like cars do, although sometimes not quite so badly (viewed as a percentage). Used ones are still appreciating slowly.
2) Sellers are not as motivated right now as buyers might hope. Anyone who couldn't afford to hang onto an airplane in this economy has probably already unloaded it.
3) Most aircraft on leaseback will be a net loss, except of course that you get to own an aircraft when you're done. It just won't be as expensive as it could have been.
4) Light trainers might break even or turn a profit. They're relatively inexpensive and relatively popular with renters. Best bets: 152s, 172s, Warriors, Archers, Citabrias.
5) I got an asking-price quote on a lovely 1976 Citabria and it seemed affordable. Based on a very preliminary personality reading of its seller, I am confident I could do better elsewhere.
It's a possibility. I'm not serious about it yet, but as I learn more I might get serious.
1) New aircraft do depreciate right off the lot, just like cars do, although sometimes not quite so badly (viewed as a percentage). Used ones are still appreciating slowly.
2) Sellers are not as motivated right now as buyers might hope. Anyone who couldn't afford to hang onto an airplane in this economy has probably already unloaded it.
3) Most aircraft on leaseback will be a net loss, except of course that you get to own an aircraft when you're done. It just won't be as expensive as it could have been.
4) Light trainers might break even or turn a profit. They're relatively inexpensive and relatively popular with renters. Best bets: 152s, 172s, Warriors, Archers, Citabrias.
5) I got an asking-price quote on a lovely 1976 Citabria and it seemed affordable. Based on a very preliminary personality reading of its seller, I am confident I could do better elsewhere.
It's a possibility. I'm not serious about it yet, but as I learn more I might get serious.
