What Factors Should a Company Consider when Purchasing or Leasing an Aircraft?
By Wildcatter Aviation, LLC.
Just like any other investment, the company must consider several factors before purchasing or leasing an aircraft. Since there are companies with employees who travel frequently for the business, owning or leasing an aircraft may make sense in regards to cutting back on expenses. However, this involves a substantial investment, and that’s why it requires careful planning. Therefore, the most common question that companies ask when utilizing an aircraft is whether to purchase or lease one.
Photo Credit: Didier Weemaels
There are pros and cons to both buying and renting. The first thing that your company needs to do is to evaluate the company’s current capabilities and situation as well as future plans. It is important to consider the method of acquiring the aircraft, and whether it will make your business activities easier. The initial cost is the major factor to consider, but it is not the only one. There are several factors that you need to consider to ensure that it is the right time to buy or lease an aircraft.
Current Financial Situation
One of the factors that can determine whether the company will purchase or lease an aircraft is the company’s financial situation. It is important to find out if the company has the capital to buy or whether it is better to lease it for now. It is also vital for the business to look beyond the current financial situation of the company, and project the costs over several months in the future.
Keep in mind that the one-time financial outlay when buying an aircraft might be larger, but the cost of leasing can add up. Thus over a long period of time, the company might end up paying more than the purchase value. Another thing to consider is if you can yield a return on investment when you sell the aircraft in the future. This is not the case when you lease an aircraft.
Purpose of the Aircraft
Another factor to consider is how you are going to use the aircraft. Once you have determined the purpose of the aircraft, then you can narrow it down to model, manufacturer, and the year. The company needs to know whether the aircraft will be primarily used for short trips or long flights.
If you have determined that buying is the more logical choice for your company, then you need to choose from different aircrafts for sale that will meet your budget and travel requirements. Corporate aircraft prices have a wide range of selection criteria, depending on several factors such as performance, size, and efficiency, just to name a few.
An aircraft can make an impact on your company, especially if you have chosen the right one. It is important not to rush to a decision, so that you can determine the best aircraft for your business needs.
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