Dear COPA Folks:
I am in the midst of final due diligence about whether or not to put my fresh out of dual engine overhaul/mods/annual '84 Seneca III up for sale and take a position on a yet to be manufactured 22GTS on leaseback to Cirrus as a demonstrator while I try and sell the Seneca.
YES, I WILL JOIN COPA IF I DO THIS!!
It looks like annual costs will be a wash with decreased direct costs and increased indirect costs for loan servicing, etc. I see that on the one hand I have turbos, Known Ice certification, FL240 capability and a second mill in lieu of a chute. On the other I have equal speed and payload, pretty much, better viz, comfort and safety features. Direct fuel, hangar costs will be down. I live in Duluth, so I will be victim of an obscene sales and registration tax. I will also have to come up with deposit and down payment, versus my share of the OH/mod/annual costs.
The main reason I’m considering the leaseback arrangement is to have the time to sell the Seneca and get out from under what I owe the bank(s).
Has anyone had experience with doing the sale/leaseback program? Overall thoughts on the two birds, pros and cons? I appreciate those of you willing to discuss this on the “public” side.
And, yes, I will join COPA after I write the first “big check”!
Andy Niemyer (KDLH)