buy or rent a 2006 182
On May 28, 8:00 pm, Andrew Gideon wrote:
On Mon, 28 May 2007 19:31:10 +0000, Vaughn Simon wrote:
The main economic difference is probably that the rental aircraft should
have
much higher utilization because it is available to far more pilots. This
would distribute the fixed costs among far more flying hours.
Okay. If we equalize flight hours, does this advantage disappear?
No. When you rent an aircraft, you are most likely renting it from
someone who deducts depreciation on the rental asset, which the single
owner generally can't do without jumping through a lot of hoops.
And the amount of hours we are talking about is a lot -- 50-100 hours
a month for the rental aircraft. If an owner can fly that much, every
month, consistently, month in and month out, then I'm very jealous of
his lifestyle.
Also, with the rental aircraft, the overall cost to everyone totalled
up is probably more than an owner pays, but it's many more renters so
the each individual's cost is lower, and it's financially more
flexible -- as a renter you don't pay fixed costs in the months when
you don't fly, for example.
|