----------
Ah, but resale value is not that important in this case. Using a G-IV as an example (with a V the Legacy looks even better I think)...
Time value of money baby. Just rounding in my head here and I admit the model is over simplified...but...go with me here for a moment.
Your 35 million dollar Peachjet will resell for say, 75 percent of its value (if you buy a new one) to the dealer. Even if my 21 million dollar EBJ is worth ZERO I am going to come out fairly even.
I am paying financing on a smaller principle (read lower interest!) and the money I saved (14 million) is earning money. (Let's just assume 7 percent a year for grins - I just brought in13.54 million over ten years for my money).
So: GIV total outlay 35.
Resale of 35 * .75 is 26.25 m
EMB outlay 21m - 21m depreciation is zero.
13 m compounded 7 percent over 10 years equals 27.54 million.
Legacy wins by nearly 1.3 million not factoring interest expense and DOC. Point being is resale value doesn't necessarily matter that much because my plane is so much more affordable. My money and my plane are working for me at 35 million.