Purchasing a plane, is it worth it?
by Rod Alharithy
( (Kansas City, Mo))
Be honest. Do you like renting?
Sure, a few folks enjoy flying a variety of aircraft and prefer not to be tied down.
But face it, renting is the pits. You can expect rental fees anywhere from $75 to $100 an hour, not including your instructors share.
You can't normally fly when you want.
How often have you played the reservation game?
Ok, is anything available Sunday afternoon instead of Sunday morning?
Have you ever had to cut short an enjoyable afternoon jaunt to get the plane back to the airport in time for the next renter?
Or rush home before the FBO closes. Surely you'd rather avoid scheduling problems and fly when ever you'd like.
Owning your own aircraft comes with many expenses and responsibilities.
As the owner of the aircraft, you are responsible for insuring all of the maintenance is up to date, as well as paying hangar fees and any insurance needed.
This is often where most individuals believe that aircraft ownership is only for the rich.
Most of the non flying public think that we are all fat cats.
If your neighbor buys a $30,000 sports car, everyone admires him.
If you buy a $10,000 airplane, everyone says you have to much money for your own good.
Yet your neighbor might pay more every year on his sports car's insurance premium than some planes cost to operate for a year, including quite a bit of flying.
If you purchased your own airplane, used it for training and building time, it would be cheaper in the end.
When you finished your flight training, you could even turn around and sell it, recovering a great deal of your expenditure.
An aircraft owner may be able to depreciate the majority of his/her aircraft with legitimate business use, and renting your aircraft can be another great way to offset the expenses that come with aircraft ownership, just make sure you check with your insurance provider on policies pertaining to additional pilots as well as an aviation tax specialist.
You can find additional information covering tax advantages and insuring your airplane at www.aopa.com.
Another advantage of owning your own aircraft and probably the most appealing to me, would have to be the flexibility.
There are numerous airports around the world that accommodate private aircraft, compared with relatively fewer airports available to commercial carriers.
In the U.S. alone there are 5400 airports available to private aircraft and only 500 available to commercial travel.
Add to this security issues, overcrowded and overbooked flights, ticket prices increasing and why would anyone fly commercial if they could avoid doing so.
As a result, private aircraft owners can enjoy the flexibility of being able to go where they want, without adhering to set schedules.
If you're seriously considering the purchase of an aircraft you should be aware of some key points.
There are many older aircraft available for as little as $15k to $25k that are well maintained and have plenty of flight time remaining.
Maybe you don't want an older aircraft or perhaps you don't even have the financial resources available.
There are many aircraft lenders that can pre-approve you over the phone in as little as fifteen minutes.
Or you can apply online.
Once you've been pre-approved, you are under no obligation to use the loan.
Most lenders require a minimum of 10% down with a 10-20 year loan.
These aircraft lenders offer a low monthly payment with outstanding repayment terms. Some offer additional pilot incentives as well.
If you don't think you'll be flying that often, it's probably not a wise decision to finance an aircraft.
In this case, renting would be the better option. Once you've determined that you're going to fly enough to justify the purchase, you should determine which aircraft is right for.
This is one of the most important decisions you will face in this process.
The aircraft should meet your personal standards, as well as fit into your needs and budget.
What will you primarily be using your aircraft for?
This will help determine the type of aircraft to look for. Determine your budget.
The purchase price of an aircraft is only part of the affordability.
You must also consider the cost of operating and maintaining the aircraft.
The operating costs can vary between the various types of aircraft.
If you purchase an aircraft that has high maintenance and operating costs, you may negate any savings over renting.
Shop around!
Knowing how similar aircraft have been priced can be very helpful in determining if the price of a specific aircraft seems fair.
Engine times have a limited life expectancy or TBO(Time Before Overhaul).
If you purchase a plane that has 1500 hours on an engine with a 2000 TBO, you will have approximately 500 before you need to overhaul the engine.
That's more than enough hours to finish your commercial rating.
It all depends on your needs.
Once you find your dream aircraft, you're ready to jump in. Not so fast!
Research your choice of aircraft with a fine tooth comb.
Gather all information related to the aircraft including, a complete list of specifications, photos, maintenance history, damage history, etc.
Knowing the history is essential.
All maintenance should be complete and well documented.
Run a free aircraft background investigation including NTSB and FAA accident reports at www.myairplane.com.
Verify the aircraft has a clean title.
If there is an old lien on the aircraft, you can not get financing, and worse yet that person could have a claim to your airplane.
There are companies in Oklahoma with access to FAA records that can perform a title search for you.
You can also enter the aircrafts N number on the FAA website at www.faa.gov to get a history report.
Make sure the aircraft is mechanically sound.
Get a pre-purchase inspection done from a qualified aircraft mechanic to avoid any unexpected expenses which could erase any financial advantage.
If your going to need Insurance, you'll want to shop around.
For more information on aircraft insurance check out, AOPA's pilot's guide to Insurance: Renters, aircraft hull and liability.
Yes, aircraft ownership can be expensive and time consuming, but in my eyes it’s well worth it. Ultimately, your decision to purchase an aircraft should not be taken lightly!
You'll want to figure all of the costs associated with owning vs. the total training time in a rental aircraft, plus the cost of your instructor.
This will give you a clear picture of the total commitment and allow you to make an intelligent decision.
If you have the financial means and you're serious about your training, I would highly recommend purchasing an aircraft.
You can learn more about the purchase of an aircraft at www.airplanenoise.com.
