Doing a Leaseback

So you just bought yourself a 2003 Cessna 172. This happens to be what your local flight school is looking for. You know that your budget is a little tight now, and that you won’t be using the airplane ALL the time. Should you lease your used aircraft back to the flight school? It could be a great deal, but just make sure you understand what you are getting yourself into before you sign the dotted line.

When you buy a used airplane for yourself, you will probably end up flying it about 100 hours a year. You will be the only person flying it and you will know how it’s been flown and taken care of. When it’s time to sell, you have a good idea of what it’s worth and the next buyer will be pleased by the low time and well-maintained airplane.

If you lease your Cessna 172 out to the local flight school, you will see it’s airframe and engine hours go up faster than you can think. Instead of 100 hours per year, they are racking up 100 hours a month. Now your 2003 Cessna 172 has the airframe hours of a 1980 Cessna. The engine will wear down faster with the constant power adjustments from simulated emergency procedures and excessive run ups, take offs, and procedures involving full power to idle. These things are very hard on the engine. Also, the airframe is going to be abused by the excessive landings, many of which will be hard landings and bounces. When you go to sell this airplane, keep in mind that it is now a “trainer” and will receive much lower offers.

On the bright side, you will have an airplane that is maintained by the flight school and, depending on the deal, get your airplane nearly paid off for you. This will make selling it at a much lower price easier to handle since a good portion of the airplane was paid for by leasing it back to the flight school.

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