Annual Cost of Ownership

I am considering purchasing a 2 or 4 seater. I can justify the cost of the
plane, by the off set rental fees, but I am not sure how much I need to
budget for other fees, insurance, tie down, gas, parts, maintenance, etc.

I am looking to spend around 25k on the plane, nothing fancy, just something
to build time in. If need be I will spend a little more to get something
that is IFR certified so I can work on my rating.

Any advice, experience with additional costs would be apprecitaed.

Thanks,
Tom

"Tom Hyslip" wrote in message
. com...
I am considering purchasing a 2 or 4 seater. I can justify the cost of
the
plane, by the off set rental fees, but I am not sure how much I need to
budget for other fees, insurance, tie down, gas, parts, maintenance, etc.

I am looking to spend around 25k on the plane, nothing fancy, just
something
to build time in. If need be I will spend a little more to get something
that is IFR certified so I can work on my rating.

Any advice, experience with additional costs would be apprecitaed.

It will depend a lot on what area of the country (or which country?)
you're in as far as costs for tiedown/hangar and fuel. If you're 'lucky'
enough to be in the boondocks, you can find hangar space for under $50/month
and mogas on-field for under $2/gallon. State registration and/or taxes may
also have to figure into your budget.

Check with other owners in your area to get some idea as to
tiedown/hangar charges, maintenance, taxes, insurance, etc., for a similar
aircraft.

"Tom Hyslip" writes:

I am considering purchasing a 2 or 4 seater. I can justify the cost of the
plane, by the off set rental fees, but I am not sure how much I need to
budget for other fees, insurance, tie down, gas, parts, maintenance, etc.

I am looking to spend around 25k on the plane, nothing fancy, just something
to build time in. If need be I will spend a little more to get something
that is IFR certified so I can work on my rating.

For $25K I doubt you'll find a usable 4-seater except by really good
luck. But you can find some kind of (minimally) IFR-equipped 2-seater
for that.

As for yearly cost, unless you fly a lot, you may find your total
yearly expenses owning to be greater than renting, not even counting
the initial purchase price. So if you're going into ownership
thinking you're going to save money, that would not be automatic.

I think it's helpful to split the yearly costs into two categories,
"fixed", and "operating". Fixed includes hangar rent, insurance,
annual inspection, and maybe even repairs--anything that doesn't
depend on the engine turning over. Operating costs are gas, oil,
maybe some repairs, and maybe a fund for engine overhaul.

My motive for owning was not to save money. Instead, because my direct
hourly operating cost is now much lower, psychologically I feel free
to fly whenever and how often I want, without worrying about the
dollars per hour of that flying. I now fly a lot more and have a lot
more fun at it.

That is pretty much exactly how I would state my reasoning for owning
(which I don't, yet).

My motive for owning was not to save money. Instead, because my direct
hourly operating cost is now much lower, psychologically I feel free
to fly whenever and how often I want, without worrying about the
dollars per hour of that flying. I now fly a lot more and have a lot
more fun at it.

"Tom Hyslip" wrote in message
. com...
I am considering purchasing a 2 or 4 seater. I can justify the cost of
the
plane, by the off set rental fees, but I am not sure how much I need to
budget for other fees, insurance, tie down, gas, parts, maintenance, etc.

I am looking to spend around 25k on the plane, nothing fancy, just
something
to build time in. If need be I will spend a little more to get something
that is IFR certified so I can work on my rating.

Any advice, experience with additional costs would be apprecitaed.

Thanks,
Tom



AOPA has a sheet on the costs of ownership, but nothing is better than
making the call to the local field to get prices for hangar/tie down, fuel,
and check to see if they can fix the model of plane you are planning to buy.
Annual maintenance costs are often found in owners groups but beware they
tend to discount the worst case scenarios. Also, they may know something
about the actual plane you are looking to buy (rare, but possible).

Call for insurance on the specific model based on your present skills.

You may be better off with a partnership or stepping up to a higher cost
plane. The cost of ownership can be much less in a 100k plane than a 25k
plane. Your mileage may vary.

You may be better off with a partnership or stepping up to a higher cost
plane. The cost of ownership can be much less in a 100k plane than a 25k
plane. Your mileage may vary.

I strongly agree with the suggestion to consider a partnership. In my
experience anyone thinking of buying an airplane on even a bit of a
tight budget would do well to at least look into partnerships. Even
with three or four partners, many partner airplanes STILL don't fly
enough to keep the pilots proficient, or the airplanes well
lubricated. Truth is most G.A. pilots fly very little, and that's
even often even true about partner owners.

It really enhances economics to be dividing those fixed costs among
three or four owners. Plus, there can be social benefits and moral
support from being part of a small, cohesive group. You can end up
with far more airplane for your investment, have less risk of
financial ruin, know that you are not buying from an owner trying to
offload a problem airplane, and enjoy most of the benefits of sole
ownership. If you live in a big city, finding a partnership share to
buy is not going to be much problem. If you live in a rural area or
small town, it can be hard to find the right arrangement. I know, I
tried for about four years to put together a partnership in my little
town. Never was able to do it, and by then I was financially able to
shoulder the whole load myself. But early in my flying career I was
part of two different partnerships, and was happy in both. (One was a
thirteen member "club" with two old airplanes, and one was a four-man
partnership in an older Bonanza.)

The downsides of partnerships a Groups can have problems if one or
more members are rascals, but I haven't seen that happen myself. You
might have to compromise on availability, but again not often in my
experience. You might not be able to get full member agreement on
upgrades that you would like to see installed, such as an autopilot or
a new IFR GPS. You might not like the way some partner leaves the
seatbelts un-tidy, but heck you gotta relax about some things.

I'm sure that the thrill of flying is deep in your system now, but
there is always some risk that the excitement of it will wear off.
(Didn't happen for me, or for most of the others reading this group,
but it does happen to many weekend pilots). A partnership will leave
you feeling better in case that happens, since you are left with a
smaller nut to digest. It can make real good sense for a prospective
first time owner.

John Pierce CFII, N260F, N711WU

Me too... plus the arguments about partnership. Our plane has three people in
on it. Big expenses are split so they don't hurt quite as much. Also, you're a lot
more likely to find a slightly higher class IFR-equipped plane (think Cherokee
140/180) that doesn't have some major issues for $35-40k that you can split with a
partner than you are to find a solid low-end (think IFR Cessna 152) one for $25k.

As far as direct operating expenses... I flew to see my sister last weekend.
It was 400 nm round trip, beautiful VFR. Cost me 32 gallons ($50 here) of cargas
(Cherokee 5D 180... I flew slowly). I certainly wouldn't have done it on a whim if I
was shelling out $90/hour "direct" operating cost (probably $350 total) for renting.

It's the intangibles of ownership that make it worthwhile. Of course it can
screw you, but a partner helps with little degradation in availability.

-Cory

Paul Folbrecht wrote:
: That is pretty much exactly how I would state my reasoning for owning
: (which I don't, yet).

: My motive for owning was not to save money. Instead, because my direct
: hourly operating cost is now much lower, psychologically I feel free
: to fly whenever and how often I want, without worrying about the
: dollars per hour of that flying. I now fly a lot more and have a lot
: more fun at it.

--
************************************************** ***********************
* The prime directive of Linux: *
* - learn what you don't know, *
* - teach what you do. *
* (Just my 20 USm$) *
************************************************** ***********************