XO CL300-Define firm order

[X-Wind]

Can someone educate me regarding firm order, and option order?
I have a general idea, however I'm not 100% sure..

 

[GooseHZ]

when you rolling down the runway in the jet.....its firm.

 

[X-Wind]

when you rolling down the runway in the jet.....its firm.

That cracked me up!!!!Good one!

Tell me this, Is there earnest money involved in a firm order?

 

[hyflyin]

.......................................

 

[GSXR600]

when you rolling down the runway in the jet.....its firm.

..........and it can still be returned if the economics don't work!!

 

[X-Wind]

Could you elaborate re: your statement?

 

[o2bflyn]

That cracked me up!!!!Good one!

Tell me this, Is there earnest money involved in a firm order?

Not 100% sure, but I would imagine so. I don't think the manufacturers would start production unless they had some sort of a comittment besides a signed contract.

 

[X-Wind]

Not 100% sure, but I would imagine so. I don't think the manufacturers would start production unless they had some sort of a comittment besides a signed contract.

I would have to agree with you..But , I have never bought a 20M airplane...?


I'm some what surprised there have been No XO members posts on this thread??????

 

[clydefastly]

I would have to agree with you..But , I have never bought a 20M airplane...?


I'm some what surprised there have been No XO members posts on this thread??????

Don't know the answer, just checking in for XO.

I havn't heard the term "firm order" used to describe anything other than a serial # with an XO tail # attached to it.

Sorry I can't be more helpful.

 

[t-bone]

To the best of my knowledge, a firm order means that a contract to purchase has been signed, and a deposit has been paid. An option to buy is reservation of a delivery position, but no contractual obligation. I would venture to guess that some good-faith funds are still required for the option, but significantly less than that required for a firm order.

But then again, I'm just a pilot, so what do I know!

 

[Flex-ible]

A "Firm order" is a legal commitment to purchase the plane. The manufacturer could sue the company if they did not follow through with the purchase. An incremental deposit is required the closer you get to delivery.

A "option" is the opportunity for the customer to purchase additional planes at a pre-determined price, regardless of future price increases.

Of course, Eclipse had hundreds of "firm orders"....from Day Jet.

 

[X-Wind]

Thanks guys!

It makes alot of sense!