hey folks,
as I am making my final arrangements for moving to the US (I'm Israeli and going off to college @ Colgate University in Upstate NY), I am also conducting some research about the best way to go about advancing my aviation career while at school.
I have a PPL and around 100 TT. my next goal is an instrument rating, followed by time building for a commercial license. even though aviation is just a hobby for me (I don't plan nor want to do it for a living), I absolutely love it and therefore would like to keep gaining experience and ratings.
I have 7 months of school a year and I figured at least 12 hours a month (is that too much? too little?) so that adds up to around 85 hours a year.
The two options are of course renting and owning (i tried looking into leasebacks / buying a share of a plane or buying block time but there were no results in my area). there is an airport 1 mile from my school (Hamilton Municipal) with a single rental company. they rent block hours on a 2003 172S for $145 wet (which is a little expensive for me). the nearest airport is 45 minutes away but has a wet warrior for $105.
therefore, renting at the close airport (which i will most likely end up doing if i resort to renting) will cost me around $12,500 a year.
I have been thoroughly researching owning and operational costs and though I realize they can vary significantly i would still like your input.
a late 1970's / early 1980's C172 / PA-28 appear to go for about $40,000-$50,000 (does that make sense?) lets assume the airplane will be bought against a loan of $55,000 payable over the course of 12 years ($460/month).
fixed costs that I was able to think of:
insurance = $2,500 / year
annual + 100 hour inspections = $5,000 / year
hangar = $1,500 / year
loan payment = $5,520 / year
(please let me know if anything here doesn't make sense to you).
total = $14,520
variable operating costs:
new engine (TBO=2000 hrs) = $9 / hour
fuel burn (around 8 gal an hour times 6 which is high for NY state including tax) = $48 / hour
preventive maintenance = $4 / hour
total = $61 / hour.
hence, for 85 hours i will pay $14,520 + 85 * $61 = $19,705 yearly.
assuming i can find 2 more people who will go in on this with me (very reasonable - we have a few students pilots @ Colgate), I cut the fixed costs in 3, which means (85 hours each) -> ($14,520 / 3) + 85 * $61 = $10,025 per person, already $2,000 below the renting price and I only share the airplane with two other people.
my main questions to you guys are:
1) do my numbers make sense?
2) where does one get the initial capital to pay the down payment, and how does that add up with the numbers?
3) summer breaks are 3 months, and there is a good chance the airplane will not be flown a lot during that time. other than it being a good time for an annual, are there any mechanical ramifications for an airplane not flying for so long?
4) another main issue is who is the actual owner of the airplane. i will be graduating in 4 years and will leave Colgate, and so will my classmates, each to a different direction. hopefully, someone will take our spot in paying the loan amount and fixed costs, but when the loan comes to an end after the 12 year period, who will own the plane? i've looked into starting a flying club but it seems like a lot more work compared to sharing an airplane with a couple friends.
another option is to sell the airplane after the 4 years, when 30% of the loan has been paid. is that a reasonable loss of value for an airplane - or in other words, if we buy it for $50,000, will we be able to sell it for $35,000 4 years later?
I realize some of my questions might be vague and/or uneducated. my apologies, I am just an enthusiastic 21 year old who loves flying - I am sure most of you can relate
any input would be sincerely appreciated. thank you so much for your time!!
as I am making my final arrangements for moving to the US (I'm Israeli and going off to college @ Colgate University in Upstate NY), I am also conducting some research about the best way to go about advancing my aviation career while at school.
I have a PPL and around 100 TT. my next goal is an instrument rating, followed by time building for a commercial license. even though aviation is just a hobby for me (I don't plan nor want to do it for a living), I absolutely love it and therefore would like to keep gaining experience and ratings.
I have 7 months of school a year and I figured at least 12 hours a month (is that too much? too little?) so that adds up to around 85 hours a year.
The two options are of course renting and owning (i tried looking into leasebacks / buying a share of a plane or buying block time but there were no results in my area). there is an airport 1 mile from my school (Hamilton Municipal) with a single rental company. they rent block hours on a 2003 172S for $145 wet (which is a little expensive for me). the nearest airport is 45 minutes away but has a wet warrior for $105.
therefore, renting at the close airport (which i will most likely end up doing if i resort to renting) will cost me around $12,500 a year.
I have been thoroughly researching owning and operational costs and though I realize they can vary significantly i would still like your input.
a late 1970's / early 1980's C172 / PA-28 appear to go for about $40,000-$50,000 (does that make sense?) lets assume the airplane will be bought against a loan of $55,000 payable over the course of 12 years ($460/month).
fixed costs that I was able to think of:
insurance = $2,500 / year
annual + 100 hour inspections = $5,000 / year
hangar = $1,500 / year
loan payment = $5,520 / year
(please let me know if anything here doesn't make sense to you).
total = $14,520
variable operating costs:
new engine (TBO=2000 hrs) = $9 / hour
fuel burn (around 8 gal an hour times 6 which is high for NY state including tax) = $48 / hour
preventive maintenance = $4 / hour
total = $61 / hour.
hence, for 85 hours i will pay $14,520 + 85 * $61 = $19,705 yearly.
assuming i can find 2 more people who will go in on this with me (very reasonable - we have a few students pilots @ Colgate), I cut the fixed costs in 3, which means (85 hours each) -> ($14,520 / 3) + 85 * $61 = $10,025 per person, already $2,000 below the renting price and I only share the airplane with two other people.
my main questions to you guys are:
1) do my numbers make sense?
2) where does one get the initial capital to pay the down payment, and how does that add up with the numbers?
3) summer breaks are 3 months, and there is a good chance the airplane will not be flown a lot during that time. other than it being a good time for an annual, are there any mechanical ramifications for an airplane not flying for so long?
4) another main issue is who is the actual owner of the airplane. i will be graduating in 4 years and will leave Colgate, and so will my classmates, each to a different direction. hopefully, someone will take our spot in paying the loan amount and fixed costs, but when the loan comes to an end after the 12 year period, who will own the plane? i've looked into starting a flying club but it seems like a lot more work compared to sharing an airplane with a couple friends.
another option is to sell the airplane after the 4 years, when 30% of the loan has been paid. is that a reasonable loss of value for an airplane - or in other words, if we buy it for $50,000, will we be able to sell it for $35,000 4 years later?
I realize some of my questions might be vague and/or uneducated. my apologies, I am just an enthusiastic 21 year old who loves flying - I am sure most of you can relate
any input would be sincerely appreciated. thank you so much for your time!!
