Looking for advice about first time aircraft ownership

[AH-1 Cobra Pilot]

2 hours ago, Appalachia said:

Well I might get laughed out of the room on this one  but here is a very optimistic excel doc I put together. Using a Cherokee and two rental Cessnas as a comparison.

 

Aircraft rent vs ownership.xlsx 55.59 kB · 3 downloads

Now, instead of hours, convert to miles flown.

[A64Pilot]

Only comment I’d make is that I think the 140 is overpriced, a Mooney’s annual will cost more than 10% more and it will burn more than 10% more fuel.

‘But it’s a 90 kt airplane too, if you lean it out and slowdown a Mooney will burn the same fuel and still be much faster.

‘I have always thought that to make ownership logical from a purely financial perspective, you need to fly more than 100 hours a year.

However my last rental was in Killeen Tx about 1989 I think, mission was to take another pilot from the unit and his wife to supper, last renter’s pax had puked in the backseat, so we put newspapers down over that, then it wouldn’t  start, trouble shooting found a loose battery cable under the back seat, and the battery cable had been chafing on the elevator push pull tube.

That put me off of renting, between the aircraft not being airworthy, the puke smell and us being late from having to deal with all of that was enough for me.

[McMooney]

1.  If you are financially capable, DO IT.  don't pass go, don't collect 200$, just buy the darn plane.  kick myself for waiting.

2.  understand the cost, it cost me about 10AMU per year before ever flying the plane.  (annual, hangar rent, insurance, database subs, garmin pilot sub )

how much renting is 10AMU ????

3.  if you can cover #2, forget the cost, you're good.   Seriously, never look at the cost, you've been warned.

as for a loan, i say do it.  I waited till i could buy the thing cash,  still took a loan and invested the cash.  Best decision ever.

 

 

[toto]

Just now, McMooney said:

1.  If you are financially capable, DO IT.  don't pass go, don't collect 200$, just buy the darn plane.  kick myself for waiting.

2.  understand the cost, it cost me about 10AMU per year before ever flying the plane.  (annual, hangar rent, insurance, database subs, garmin pilot sub )

how much renting is 10AMU ????

3.  if you can cover #2, forget the cost, you're good.   Seriously, never look at the cost, you've been warned.

as for a loan, i say do it.  I waited till i could buy the thing cash,  still took a loan and invested the cash.  Best decision ever.

 

 

The description I’ve heard of financial fitness for a turbine goes something like this:

 “Go to your bank, take out $10,000 in cash, and burn it. If that makes you uncomfortable, you can’t afford a turbine-powered aircraft.”

If you use $1000 instead of $10,000, I think the exact same exercise is accurate for a piston. 

[carusoam]

There is a line missing in the eXcel spreadsheet..,

Smiles per gallon...  or flahrvergnügen...  the enjoyment of flying...  

You can use a scale from 1 - 10...  the Mooney will be a 9+

Multiply the score by 1k...  subtract this number from the annual cost of flying...  

It will clearly indicate which one is worth it...

Best regards,

-a-

[carusoam]

Let’s invite @WeldWade to stop by this conversation...  it may be of interest to him too...

-a-

[Appalachia]

Thanks all  I don't intend on buying a Cherokee but thought it would be a good comparison as I think of it as one of the cheapest 3/4 seaters to buy and own. My heart is pretty set on a Mooney at this point. 
 

17 hours ago, McMooney said:

2.  understand the cost, it cost me about 10AMU per year before ever flying the plane.  (annual, hangar rent, insurance, database subs, garmin pilot sub )

how much renting is 10AMU ????

3.  if you can cover #2, forget the cost, you're good.   Seriously, never look at the cost, you've been warned.

This is good to hear. I recently paid off a student loan that was costing me 10AMU a year.  I will feel much better about paying similar for something that makes me much happier.

Current difficulty is finding a Long Island flight school with complex aircraft for the endorsement. I'm guessing the insurance premiums no longer make sense for flight schools to keep retracts in stock

Edited June 12, 2021 by Appalachia
complex endorsement

[Hank]

5 hours ago, Appalachia said:

Current difficulty is finding a Long Island flight school with complex aircraft for the endorsement. I'm guessing the insurance premiums no longer make sense for flight schools to keep retracts in stock

Many of us got our Complex Endorsement while flying our "new" Mooneys during transition training. Loom for an experienced Mooney CFI; there's a list in every issue of The Mooney Flyer.

Happy hunting!

[squeaky.stow]

Another thing that makes owning more appealing than renting is hard to put into a spreadsheet but very real. Your own airplane is always available exactly when you want it, and if you decide that you want to stay at destination X for an extra week, nobody is phoning you up and telling you that they need the airplane back home for another renter, or charging you daily minimum rent for sitting idle.

[Gunnersmate]

In reference to the spreadsheet owning vs renting, you still have a plane to sell when your done. Renting you have nothing 

[carusoam]

Welcome aboard Gm!

I like your way of thinking…

Best regards,

-a-

[AerostarDriver]

@Appalachia I just looked at your excel sheet. Something to note, you may want to consider taxes as well in your cost of ownership. The reason I bring this up is Virginia, the location of your main mission has some odd tax implications such as owing 2% of the purchase price annually for any aircraft that stays in Virginia for 90+ days a year. Depending on where your store the aircraft may complicate this, for example if you live in NYC but keep the airplane in NJ but the aircraft is registered to your address in NYC you may have to pay taxes in both states plus Virginia which could ad up to a few thousand dollars a year on lets say a 60K C or E. 

Aircraft and Watercraft | Virginia Tax

[carusoam]

Sales taxes also have some variation to be aware of…

Your accountant can be helpful with this…

If you don’t have an accountant… MS might be able to supply one for you…  

Best regards,

-a-