ARE YOU THINKING ABOUT BUYING A PLANE BUT AREN’T SURE WHETHER IT’S WORTH IT?
I’ve had many students that have completed their private pilot training and immediately bought their own plane afterwards. Some actually buy planes before they even get their license! So which is better? This really depends on you and your defintion of better.
From a cost standpoint, it is usually cheaper to rent. I say usually because most people only fly 50 hours a year. If you’re someone that plans on flying a couple of hundred hours a year or more then renting may not be for you. From a convenience standpoint, it is better to own. They both have advantages and disadvantages. Let’s look at some of them. We will start with renting.
RENTING ADVANTAGES: You are not committed to anything but the time you fly it. If something breaks, it’s not your responsibility to fix it (unless it was your fault). You don’t have to worry about cleaning it, maintaining it, hangaring it or coming up with money for repairs. Fly it and leave it when you’re done. If you don’t have the money to fly, you don’t fly and it doesn’t cost anything.
RENTING DISADVANTAGES: You may not get the plane when you want or need it. You can’t decide to stay longer at your destination because you share the plane with other renters and someone else may have the plane scheduled. You usually have to put a minimum amount of hours on the plane when you keep it for extended periods of time. If the plane that is for rent has ugly faded paint and burnt orange velour interior with old beat up radios, that’s what you get whether you like it or not.
OWNING ADVANTAGES: The plane is there, ready for you whenever you want it, no matter what time it is! The radios and other things are set exactly as you left them. You can usually set up an account for fuel at the airport your plane is based at so you don’t have to pay for fuel right away. You can customize the plane any way you like! If you like red and white with gold trim and tan leather seats, you can buy one like that or pay to have it done. You don’t have to share with people who may not take care of the plane the way you would. If you plan on flying a lot, then the hours you fly may end up offsetting your costs. You need to add up the hours you plan on flying and divide it by the remtal costs to fly the plane that many hours and see if it’s cheaper to own.
OWNING DISADVANTAGES: It’s expensive! It costs money whether you fly it or not! This is why most people find a partner, which is also a disadvantage. A hangar could cost between $250 – $350 a month on average. Annual inspections for a small 4 seater can be anywhere from $800 – $1200 a year if nothing has to be repaired. Insurance is about the same price as the annual. If something is wrong with the plane, then aircraft parts and repairs are expensive! You could have bills that total several thousand dollars. Most engines will have to be overhauled eventually and if you buy a high time engine then be prepared to put another $18,000 into it in a short period of time. Most overhauls are around 2000 hours so if you get a plane that has 1600 hours on the engine and you fly 100 hours a year, then in 4 years you will have a big bill coming. You have to make sure all the maintenance is done and all the log books are correct. Don’t forget the cost of the plane itself. Good used planes will cost $40,000 to $50,000 or more.
With a plane payment of around $700 a month included, your cost to own a plane without even flying it could be close to $1200 a month or more! Add the price of fuel and oil when you fly and you can plan on another $50 an hour! You could rent a plane for 9 hours every month at $135 per hour to break even with your fixed costs to own. That includes fuel where with owning you’d pay another $450 for the same 9 hours on top of the $1200.
You have to decide what is best for you. Is it better to keep it as cheap as possible or do you want a plane available for frequent flights to be able to go at the drop of a hat? It boils down to COST or CONVENIENCE.