If you or your company is considering the long term needs of a jet airplane you may be considering the option to purchase versus the option of leasing a jet. Like so many other things in the business world today, there are pros and cons for each expense you qualify for the budget of your company. Can your budget qualify for the full out purchase of a jet airplane? How would leasing a jet for a determined amount of time fit your needs better than purchasing one? Many companies will find that the long term needs of today will end relatively sooner than expected. To purchase a jet outright for your needs today then only to have to sell it tomorrow if your needs change may not be the best financial solution for your company. In the interest of helping you make the most educated decision possible, we have listed here several pros and cons for leasing a jet.
PROS:
1. Leasing a Jet is Less Expensive
The expense encountered when leasing a jet is less than the expense for a cash purchase of a jet airplane. The money you save on the large cash purchase can be spent elsewhere within your company. You can kill two birds with one stone by obtaining the transportation you or your company needs by leasing a jet and also free up more cash to distribute to other areas for your company’s needs.
2. Leasing a Jet can provide a Tax Write Off
Any expense you inquire during the course of your business transactions can be used as a tax deduction. The expense of leasing a jet is definitely tax deductable.
3. Leasing a Jet Allows You to set your own Time Frames
Short term time periods are available for leasing a jet. Being able to determine yourself what time period of use is best for your company makes leasing a jet the more desirable method of obtaining an aircraft for your needs.
CONS:
1. Long Term Leasing
Some companies that provide services for leasing a jet require you or your company to sign a long term contract. It may not be in the best interest for your company if you get locked into a lease that exceeds the time period you require for leasing a jet. If you are required to break the contract you originally needed you may be required to fulfill the full monetary obligations of the lease agreement.
2. Restrictions on Usage
It is not unusual for a company that provides services for leasing a jet to have restrictions on where and when you can travel. When looking into leasing a jet, make sure that your needs can be met for the designated places you will need to travel, and also that the jet will always be available to you when needed.
3. Strict Return Conditions
Another common problem when leasing a jet is that there is most always strict return conditions in the body of your lease agreement. Read your contract carefully to make sure that you will not be required to pay for high volume usage, maintenance, or wear and tear above and beyond the terms of your actual usage.
Do your homework carefully in selecting the right agency for leasing a jet. If the right terms and conditions can be found and met, leasing a jet will provide you and your company the resource you need to meet your travel obligations as well as save you money to spend elsewhere within your company.
