carusoam Posted February 1, 2015 Report Posted February 1, 2015 Paul, We are all in agreement. Paying interest on a loan adds no value to the plane. Interest payments are a complete loss. Money is fungible... The borrowed money to pay for the car, house or plane is still borrowed at a monthly price. Borrow for the one that gets the best overall interest rate. 1% is pretty good. If you had borrowed $30k for the house at 1% you also get an additional tax write off... Using an Ovation I saw at AAA's website... 1% of $200k = $2k per year in interest expense <$200/mo.... Drag out the loan as long as possible... For comparison... A 1987 firebird cost $1k per year in interest costs back in '87... You still have to repay the capital part of the loan. Wearing out an engine costs real money. Realistically, risk is important to manage as well. If unable to pay the loan, the lender will come calling. Using the house as collateral would be a bad idea fo a one income family... I'm still not a financial advisor, just a PP... Best regards, -a- Quote
par Posted February 1, 2015 Report Posted February 1, 2015 To borrow or not to borrow. There is no simple answer here. Borrowing makes sense for some and maybe if you have a tree in the backyard growing money, it doesn't. I think its foolish to spend 50K in cash even if you have plenty of money saved on a depreciating asset such as a vehicle. Let the bank take the risk because chances are, you aren't going to keep the vehicle/airplane/boat forever. Just like I would never put a 40K dollar engine into a 30K airplane, I would never spend 50K in cash when I can spread out the cost over a few years knowing I'll probably sell the plane before its paid off/timed out anyway. Of course, one must have a steady income to play this game but you need a steady income to own an airplane period whether you take a loan or pay in cash. Quote
oldrockfan Posted February 2, 2015 Author Report Posted February 2, 2015 One of the nice things about the older mooneys is the fact that cost wise... they are not too bad compared to most of the faster planes. I've been gathering more info on the mooneys and a couple of the down sides to them is they are quite a bit more expensive to insure for new pilots. The other one is annuals are both more expensive and less mechanics have experience with them than cessnas and pipers. Â I've talked to all three mechanics I know in my area and none of them have mooney experience. So anyone in the DFW area of texas know of a good mechanic that knows mooneys and doesn't charge too much? Quote
gsxrpilot Posted February 3, 2015 Report Posted February 3, 2015 I hear there's a good Mooney guy at KDTO. Someone will be along with his details soon. But the best Mooney shop in the area is DMax at KGGG. If you don't think that's in the DFW area, tell that to the guys from CA, AZ, GA, MN, etc who make the annual pilgrimage to the best Mooney shop in the country. They'd be very happy to be only a Mooney hour away from KGGG. 2 Quote
Bob_Belville Posted February 3, 2015 Report Posted February 3, 2015 One of the nice things about the older mooneys is the fact that cost wise... they are not too bad compared to most of the faster planes. I've been gathering more info on the mooneys and a couple of the down sides to them is they are quite a bit more expensive to insure for new pilots. The other one is annuals are both more expensive and less mechanics have experience with them than cessnas and pipers. Â I've talked to all three mechanics I know in my area and none of them have mooney experience. So anyone in the DFW area of texas know of a good mechanic that knows mooneys and doesn't charge too much? I think you're talking to the wrong folks. In TX you should not have trouble finding Mooney savvy mechanics, I would think almost anywhere in the state. Don Maxwell over in Longview, less than an hour from Dallas, is particularly well known. Â There are Dallas area folks on Mooneyspace who can give you more specifics. Â Second, annuals for vintage Mooneys should be very competitive with similar planes. Bonanzas have a reputation for being higher. Be sure you're comparing to a complex, retractable, not a Cherokee. Â And finally, insurance will be higher for pilots with low time in retractable and make/model. But once you have built the time the premiums will be much lower than Bonanzas. Fixed gear planes might be less but that's not a good comparison. Quote
Bob_Belville Posted February 3, 2015 Report Posted February 3, 2015 Maxwell's place a week or so ago... I count 19 Mooneys, probably a few from your area! 1 Quote
ryoder Posted February 3, 2015 Report Posted February 3, 2015 This local MSC quotes 22 hours to inspect a non turbo Mooney and 12 hours to inspect a 172. http://www.mooneyservice.com/services.html Your first year insurance will be about 80% more than a 172 but goes down when you get more time in type. My 180hp Mooney uses the same gas and oil as a 150hp 172 the way I fly it. I know because I trained in a 150hp 172M. Hangar costs, oil changes, incidentals, overhauls are all the same cost as a 172. Cs cost less to purchase than a 172 most of the time. People will think you are cooler flying a privately owned and hangared C than a 172I with 6k total time flown hard by a flight school and put away wet. Quote
oldrockfan Posted February 3, 2015 Author Report Posted February 3, 2015 Guys, I'm a fan so in no way bashing... just trying to gather info on Mooney so I know what to expect. Ill have to call that shop to talk to them and see their thoughts on buying a c,d,f. Makes sense insurance goes down as hours go up. Been watching the adds and reading all I can. Quote
carusoam Posted February 3, 2015 Report Posted February 3, 2015 One of the challenges with insurance is the renewal takes place each year.... In one month, you can get training, build hours of skill, but the discount won't come until the renewal... I think my second year with the O cost an AMU less than the first. Having an IR is icing on the cake. Avoid all other types of icing, -a- Quote
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