Lease backs: Do they pay?

General » Aviation

[ARCHIVED THREAD] - Lease backs: Do they pay?

Posted: 2/27/2012 7:29:33 PM EDT

I got an invitation to attend a webinar on purchasing aircraft, sponsered by AOPA. I'm not really in the market for a plane, but if I bought one, it would probably be a Cherokee Six. Would it be prudent to lease it back to my flying club? I've heard arguements for and against. What has been the experience here?

Mike F

Posted: 2/27/2012 8:21:29 PM EDT

[#1]

As one airplane broker put it to me, "why don't you just go ahead and pay me $20,000 and let me kick you in the balls and get it over with quickly?"

Posted: 2/27/2012 8:25:11 PM EDT

[#2]

If they made money, the places begging you to lease back would have done it themselves. Its a scam to put it lightly.

Posted: 2/27/2012 9:27:34 PM EDT

[#3]

Incorporate as an S corporation; you'll have lots of expense to write off.

Some people liked lease backs. But here's the problem with a Cherokee 6, it's going to sit more than fly. Most of the pilots that can afford to rent this airplane will own one, or will shortly after renting yours.

I can't see how it would work at all in a club with any airplane unless it's really an FBO.

Posted: 2/28/2012 4:33:05 AM EDT

[#4]

Quoted:
If they made money, the places begging you to lease back would have done it themselves. Its a scam to put it lightly.

Run far far away from anyone talking to you about a leaseback! I have never seen one of these turn out well in many years.

Posted: 2/28/2012 6:37:10 AM EDT

[#5]

Leasebacks make money for the NON-owner of the plane. All you'll get is the maintenance costs, the mortgage payment (you WON'T make enough to cover it), the loss of use of YOUR plane whenever you want it (you'll have to RENT it, albeit at a lower cost- maybe).

Should I continue or is that enough to make you say 'NO EFFING WAY!"?

Posted: 2/28/2012 7:28:41 AM EDT

[#6]

Quoted:

Quoted:
If they made money, the places begging you to lease back would have done it themselves. Its a scam to put it lightly.

Run far far away from anyone talking to you about a leaseback! I have never seen one of these turn out well in many years.

Listen to this advice. It's the truth.

Posted: 2/28/2012 7:36:04 AM EDT

[#7]

Whenever I think I want a cool toy, I always ponder to see if it fits into the F's.

If it: flys, floats, fucks, or goes Fast........it is going to cost you more $ than it is worth.

Posted: 2/28/2012 9:11:17 AM EDT

[#8]

Quoted:
Whenever I think I want a cool toy, I always ponder to see if it fits into the F's.

If it: flys, floats, fucks, or goes Fast........it is going to cost you more $ than it is worth.

...and generally better to rent it!

Posted: 2/28/2012 5:40:01 PM EDT

[#9]

Long answer: Nope.

Posted: 3/1/2012 4:12:26 PM EDT

[#10]

Your insurance will be a LOT higher if it's being used for instruction.

Posted: 3/1/2012 8:42:44 PM EDT

[#11]

Take the key you were going to give to them and A) lock the door, and B) throw it in the trash. Use your key to fly your airplane whenever you want to.

Let those lease back guys buy their own airplane instead of you paying them to borrow yours.

Posted: 3/2/2012 8:22:02 AM EDT

[#12]

It is NOT the exception to the "If it sounds too good to be true..." rule.

Posted: 3/2/2012 8:32:02 AM EDT

[#13]

So just so I understand, you guys are saying this is a bad idea?

Hehehehe. Thanks for all of the replies.

Mike

[ARCHIVED THREAD] - Lease backs: Do they pay?

General » Aviation

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