The wise folks at Conklin & de Decker have just published an article titled Lease Pros And Cons – The Things You Should Know. I highly recommend you click through and read the whole thing, (and many of the other articles they write) but here are a few central conclusions.
Key Advantages to Leasing a Business Jet:
- Leasing is less capital intensive than cash purchase.
- Leasing shifts the residual value risk to the lessor.
- If your company does not need the tax write-off from tax depreciation, leasing is generally better than financing.
- A lease can place restrictions on the operations of the aircraft.
- Early returns from a lease can be costly.
- With a lease, you may loose tax advantages.