Based on those answers, we'll try and generate a proposal that we hope addresses most of their concerns. So, in my opinion, you can't make general statements about turbine equipment, either new or used. However, several other leasing and financing experts say that newer and heavier equipment, for which a healthy residual value can be expected, tend to qualify for a longer term-anywhere from five to 10 years, with seven being the norm. Conversely, used aircraft, having a lower residual value, are more likely to be financed or leased for a shorter term, such as five years. Of course, the shorter the term, the higher the lease payments.
Early termination is achieved when the airplane is sold to an unrelated third party.
However, if the airplane brings less than that figure, the lessee is obligated to make up the shortfall. The increasing willingness of aircraft financiers and lessors to meet the specific needs of customers has been spurred by intensifying competition. The bottom line for consumers is more favorable deals. Their interest is in big-ticket loans because the loan demand overall has been rather low. So they now have a lot of salesmen out calling on airplane owners, operators and dealers.