On Tue, 06 Apr 2004 02:52:01 +0000, Dude wrote:

You are assuming the most incredible losses. Also, if you put a new engine
in the plane you can get back much of that because it increases the value,
so your only loss is the hours short of TBO. Corrosion repair should not
occur within a few years of an adequate prebuy. If someone is going to buy
badly, it won't matter what kind of pilot they are. A fool will still be a
fool after he has his ATP.

My father has been a pilot long before I was born. He's owned several
planes. I've recently started to talk about getting my license. At any
rate, the finance side of owning is something that my father has always
shared with me. Recently, I had an even more detailed conversation,
working up a spreadsheet that breaks down costs of ownership. He assures
me the wise man plans for 20%. Even better, bank 25% so that you ride out
really, really bad surprises. Needless to say, he plans on 25% and his
reserve is pretty much empty right now. Why? Surprises are there, just
lurking. He has a rather new plane. It's a 172R. I don't remember the
year on this one, but it's not older than the late 90's.

My point? The 20% that he's telling you seems like very sage advice. If
you don't need, you've got some cash for moving up, when you're ready.
Should you need the reserve, you'll be dang glad you planned for it.