Duksrule

Anyone have an opinion on Buying a new A/C and leasing it back? I am a PPL and will be getting the rest of my ratings. If you buy an A/C from Cessna they pay $4000 toward your instrument ticket. Plus the school I go to is looking for one maybe 2 more 172 G1000 planes. They get $150 an hour for the G1000 and it is rented probably 4 hours a day minimum. I am going to a briefing on lease back this weekend at a dealer and am just looking for some insight from people that have done this or know something about it. I would hope that a brand new plane would be under warranty and not have many things go wrong with it. The 1 G1000 they have right now belongs to the General Manager of the school. They had a second one but that persone moved out west. This just seems like a way to buy a plane and get my ratings while someone else pays for it. Sort of like a rental house. I have 2 of those and nothing but great things to say about rental property.

I know that people are going to say "imagine your worst flight and multiply it by 10 and imagine that person in your plane". I have been flying there for over a year now and the A/C are in great shape and never have any damage and all of the school's planes are lease backs. I know there is always a chance of something happening but isn't that what insurance is for?

de727ups

Leasebacks usually favor the school to the point you won't make any money. You'll lose a lot on depreciation on a new plane. If you need a big tax write off, you'll have one....

Nothing wrong with buying a plane to do your ratings in, just get one that's 30 years old but in good shape. You'll be able to sell it for what you have into it when you're done and the payments will be WAY less.

Personally, there is no way in heck I'd even consider what you are thinking, unless you need to lose a lot of money for some reason.

Duksrule

The tax break is one thing that I am looking at. After getting raped by the IRS this year it would be nice. If I could break even on the plane and get the tax advantages it would be a deal to me....... I think. Not writing the check yet though. Like I said the manager of the school is leasing his plane back to the school so it seems there is some advantage to it. Plus all of the other planes are lease backs.

Cubdriver

Like he says, better to rent or buy a good older Cessna. Unless you just want a fancy airplane, G1000 is not required in order to get flight ratings and the airplane is going to take a big value hit due to being a trainer. The only reason I can see to do a leaseback is you are really into having access to a new airplane and there aren't any around. I know several hobby pilots who have such a need. One keeps a Diamond Twinstar and another keeps a C182 Turbo, but people keeping trainers on leaseback are rare.

Ottopilot

I know a Captain that leased back a new 172. I think its just for tax reasons. I don't think I could do it. I'd never want to be around it or the school if I did. I don't like the idea of other people flying "my" plane.

Ewfflyer

I know of a few guys that have leased back aircraft, and were not happy with the results, financially and what damage happened to their aircraft. It's one of those things that promises don't pay the bills.

stinsonjr

I agree with the crowd on this issue. A new plane and leaseback may not work the way you want it to.

My question for the more knowledgable guys answering this is - do the economics change if you substitute "new, G100 172" for "nice, serviceable Cessna 150/172" or similiar trainer that is used and already depreciated when you buy it?

4 hours a day at $150/hr against the note on a new 172 is one thing.
4 hours a day at $75/hr against a $35-$45k used 172 is another and the math might work.

I am interested in your thoughts.