Thanks guys. You rock.
Loads of information here.
Like I said, I'm not breaking out my check book yet except for training. But, having a vision is the fuel. Living the Dream is the goal.
Hell, a nice Cherokee Six is $100Kish. People blow that one TWO cars every three years.
I DO have a question or two.
- If you OWNED a place like a Cherokee Six, what do you imagine your maintenance, annuals, the 3000 houry thingy,... would cost per operational hour? So, if you flew three hours a week. Should be you putting away $50 a hour to future costs? Is there a general equation for single engine planes??
- How long does one generally finance an airplane? Is it a 15 year note?
1) I don't know about any "3000 hr thingy" but on a high powered fixed gear single you can usually figure $1000-2000/year for the annual inspection (along with an occasional $5000 surprise). Hourly costs excluding fuel ought to be in the $30-50/hr range including engine overhaul costs.
As to putting the money away or paying as you fix things, that's a personal financial question. If you are the sole owner and confident you can handle the $35k cost of an overhaul (includes $5000 labor and $1500 for the prop) there's no need to set up a separate account but if not then religiously adding the appropriate amount to a maintenance fund will keep you solvent when crunch time comes. It's not uncommon to find an airplane for sale with a runnout engine and an owner that can't afford to do the overhaul. Even more common is to find aircraft that have been sitting idle for years for the same reason coupled with a reluctance to sell at a realistic price.
IIRC, financing options run the gamut from a 3 year note to a loan with no time frame (renewable note). AFaIK, 15-25 years isn't uncommon. That said, a lot of owners (myself included) believe that it's a bad idea to borrow money to purchase toys. One thing is fairly certain, unless you expect to come into a large windfall in the next 5-10 years, you will end up being able to afford more airplane sooner if you stick with a cash only program. If you expect to make enough business use of the plane then financing may make as much sense as it would for any other tool.
My current instructor will let us rent his plane for $75 an hour wet. I will rent that til he retires!
George
That's not bad for a trainer (I assume you mean the Cherokee 140, if that's for a Six it's a steal).
One item you also need to know is that it's extremely unlikely that you can cut your flying costs by owning your own airplane. There are many benefits of ownership but saving money is rarely a realistic one. What you do get is the ability to outfit to suit your wants/needs, better availability, personal pride of ownership, and knowing you're the one who flew it last so there shouldn't be any surprises lurking under the cowl that you could have noticed on the last flight. Also know that while the availability does improve (no minimum hours for multiday trips, no reserving weeks or months in advance, no penalties for changes in plans, no scratched flights because the previous renter didn't get back, etc), there are occasions where a rental fleet has the advantage on availability, specifically not having to plan trips around annual inspections and engine overhauls (assuming the rental fleet has more than one suitable airplane).
You might also want to consider sharing a plane with one or two partners. If you go that route make sure your potential partners are compatible in every way imaginable including (but not limited to) financial resources, anal retentiveness, ability and willingness to spend time working on the plane (cleaning, oil changes etc), scheduling, and usage expectations. Generally there's not much point in going beyond a total of three partners IMO. Having partners cuts the fixed costs (insurance, hangar rent, annual inspection), and can have a small positive effect on operating costs due to more frequent use. Going from sole ownership to a two way partnership cuts the fixed costs in half, adding a third partner decreases each original partner's costs by an additional 17% of the total. Adding a fourth is more likely to generate more conflicts (twice as many potential conflicts of a personal or schelduling nature) than the meager 8% additional reduction is worth. A partnership can be looked at as a means to afford more airplane or to decrease the cost of owning the same airplane you were considering for sole ownership.