The following chart gives some of the major reasons for acquiring a permanent or semi-permanent aircraft hangar under each of the three basic methods (with buy broken down into cash and finance).
Customer Criteria
Cash
Finance
Lease
Rental
Wants Ownership
X
Optional Ownership
Use and Return Only
Off-Balance-Sheet Financing
100% Financing (no down payment)
Cash Surplus – Trade-in
Expense 100% of Payments
Needs Depreciation/Interest Write-offs
Lowest Total Cost (for ownership)
Lowest Monthly Payment (for use)
Future Business Uncertain
Temporarily Avoid Debt
Try-Out Structure
Improve Cash Flow