Moving On??

[Bob_Belville]

5 minutes ago, Coolshot said:

Several!!!

But its about the fun of flying (I think).  I think all rational thought is out of the window!

Understand. My little E is about as difficult for me to cost justify as your PA46.

You could keep a PA18 in CN and an AT-6 in NC for the fun of flying.    

[Skates97]

2 hours ago, Coolshot said:

Several!!!

But its about the fun of flying (I think).  I think all rational thought is out of the window!

The first step to any airplane ownership is to throw all rational financial thoughts out the window and only focus on the fun of flying.

[LANCECASPER]

7 hours ago, Coolshot said:

Thanks for the cost info.  My hangar rent will be going up by about $750/mo!

I do have a GFC 700 in my Mooney and the PA-46 I will buy will have the same.  I love my GFC 700. 

I am expecting about $1,360/hour for a 100 hour/year use; so $136000/year is my figuring with insurance, fuel, annual, general maintenance recurrent training, financing costs/cost of money and hangar.  A whopping amount - makes you stop and think! $118.5K of this is fixed with zero hours!!!  On an Apples to Apples basis (again factoring in cost of money and all those things, my Mooney costs $57K/year.  So the PA 46 is about 2.4X!!!

One other cost to consider is the loss of value every year, on a G1000 PA-46 somewhere between $50,000 and $100,000 per year.

Your Mooney is losing between $10,000 and $20,000 per year.

[Hank]

7 minutes ago, LANCECASPER said:

One other cost to consider is the loss of value every year, on a G1000 PA-46 somewhere between $50,000 and $100,000 per year.

Ouch! That depreciation would buy my plane every year.

[Coolshot]

Yes she does Mike - but my hours dont get me there at a reasonable cost (not that the above is reasonable!)?

Perhaps I will just stick with my wonderful Ovation 3GX!

[Coolshot]

Lancecasper: yes thats what I am reading.  So like real-estate, its about how well you buy.  

If you think of a plane as a store of value, the older it is the less depreciating of an asset it is.  (so for example, I will be able to sell my 2005 Mooney for about what I paid for it last year) Currently the cost of money is relatively low compared to the returns in the market.  Depreciation would have some tax benefits.  So by my figuring, after all costs, cost of money, loss of value on sale etc.: The annual cost delta between my Mooney and and a late-model Mirage, on the sale of the Mirage, would be $48K/year over a two year period.  Past 2 years, the economics become more favorable as the Mirage depreciates even less.

[Jerry 5TJ]

According to AMSTAT the values of pre-owned business aircraft are up in the past 12 months.  

Turboprop segment is up 19%.  

https://www.amstatcorp.com/pages/PressReleases/AMSTAT Press Release - AVT Aircraft Value Update - April 2018 040618.pdf

With loan rates low the leveraged ROI is excellent.  

I shoulda bought two or three Super Mid-Size jets — they’re up 24%.  

[NJMac]

One other cost to consider is the loss of value every year, on a G1000 PA-46 somewhere between $50,000 and $100,000 per year.

Its not really a loss until its realized, right? Just stick that head deep in the sand and it will all be alright.

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