Leaseback Questions

[Shiny Side Up]

I'm thinking about buying a plane to build time in.
More than likely a PA28 140 or 150.
This will be financed, and I would like to put it on leaseback with a local FBO.
I would really appreciate hearing from anyone who has done this, and what their
thoughts are on this approach.

How does leaseback work?
Who pays for what?
What would I get from the FBO for each hour they used it?
How does insurance work?

Thanks for your time reading this, look forward to hearing from you all.

:ok:

[slim_slag]

General way it's done in the States is you pay for everything, and I mean everything. In some places, like in the Bay Area, the renter pays for fuel after the flight. You receive all rental income, but pay $10 an hour to the FBO for their management skills. Often the FBO will want you to purchase fuel off them, and also use them for maintanance. More profit to the FBO and less choice for you. Make sure you are 100% sure what you are getting yourself into.

Usually only worth doing if the value of the plane is going up, or as a tax write off. If it was a sensible thing to do the FBO's wouldn't be so keen to offset all their risk to the owner of the plane.

If you really want to become a plane owner and offset some costs you should talk to some of the clubs in the San Diego area. I think there might also be some members clubs at LGB. Another idea is renting off these clubs to time build.

Have you found out what the demand is likely to be for those planes? Wouldn't expect it to be too high in LA. Don't listen to the FBO, they aren't taking a risk like you are, and their reasons for doing it are not the same as yours.

Forgot to add, when you rent your own plane, you will pay the FBO the full rental rate + sales tax. No discount for you, and you still get to pay the FBO it's fee for renting the plane to you.

Good luck.

[High Wing Drifter]

Judging by the expereicne of the previous owner of a previous share, it is a depressing way to own a plane, in this case an AA5; the accelerated degradation and frequent miscellaneous damage a constant headache.

The FTO will have very little motivation to be concerned about the condition of your aircraft other than it is airworthy and suitable for training.