What it Costs to Own Your Own Airplane | the real breakdown

world and do all sorts of crazy fun things go anywhere you want whenever you want and tell all your friends that you learn airplane obviously the reasons of owning an airplane are self-evident.It is awesome and you'd love to own your own airplane. so more so than the reasons let's get into what it physically, actually costs and is this feasible. Does it make sense compared to just say renting an airplane from an FBI or a flight school? Well first thing we want to do is take a look at a little spreadsheet here of what everything costs involved with owning an aircraft. So for a basic Cessna 150 we're going to look at our fuel burn, our oil burn engine deposit, because we know engines are very expensive and have to be overhauled pretty frequently or not super frequently really but in the case of a 150 typically every 1800 hours on the tack and also important to note we'll explain this in a later video but tack hours are actually shorter than or longer in a sense in hobs hours so say you fly for 1.0 on the hobbs it's probably 0.8 or so on the tack so 1800 hours on the tack is more like 2200 hours on the hobbs and everything here is going to be hobbs time that we're talking about just keep it simple. Just regular flight time so we can compare apples to apples with the cost of owning versus renting from an FBO. So anyways eight bucks an hour for an engine deposit that's hobs hours like we said tires, tubes, brakes, oil change, battery mags, light spark plugs, starter, alternator, all those things wear out and break. Radios and even more things wear or break on airplanes, but those are your very basic ones and they're all slightly overstated here just to give you a little wiggle room and also factor in a little extra cash for when other things break. Maybe like a flat motor that breaks very very rarely. So let's take a look here and we come to $613 as far as how much money this is in cost every hundred hours and maintenance and then our 100 hour or annual is going to be 400 bucks just in labor just for the inspection from mechanics come out to the hangar to the airport and just look inside the inspection pan pull the seeds just inspect the airplane then they're going to charge next four $613 as far as parts that are going to go into it. Of course you'll have two oil changes over the course of flowing 100 hours but everything else should last pretty much through the hundred hour without being addressed. Aside from maybe a light that you could probably replace yourself. As far as our fixed costs, well every year we're going to have $400 bucks for any annual period and you can say well $400 is really cheap well like we said it's just the anual labor part and that's pretty pretty standard throughout the country. Anywhere from Michigan to Florida to California you can get an annual done on an airplane for about $400 bucks provided labor only and mechanics coming up to your hangar or your airport and just kind of working out of their truck. If you bring into a shop it's probably a little bit more in labor and you can even make that cheaper just by removing all the inspection panels and the seats and everything like that yourself and doing a lot of the work yourself like the oil change and things like that. Cheapest annual I've ever had was $175 bucks and that's because when the mechanic showed up I had already moved all the interior inspection panels and every single thing from inside that airplane so they could just do their inspection quickly, easily and then I reassembled it and they inspected after I reassembled and that saved them a lot of their labor. Other fixed costs: tie-down fifty five bucks a month that's pretty standard throughout the country. Anywhere from 25 bucks a month is the cheapest I've seen it on up to a hundred dollars a month but for the most part even here in Venice, Florida on the coast you know in a more real estate expensive type area still 55 bucks a month's going rate. Insurance on a 150 if you're a private pilot even low time private pilot one hundred two hundred hours in your book you can count on about 50 bucks a month about 600 bucks a year or so for insurance. Insurance on airplanes is pretty cheap. It's just something that they don't figure you're going to use very much and you've got a lot of skin in the game as far as not dinging up that airplane compared to digging up your car. They figure that you're not going to have as many airplane accidents as you would car accidents. So airplane insurance is pretty cheap. Now if you're not even a pilot yet your student pilot and you want to buy an airplane to learn in you can figure you know 75 bucks a month maybe a hundred bucks a month at the worst end of it, but it's not going to be crazy for insurance and it really depends what your insured value is. So we factor airplane to cost about sixteen thousand. I'll go ahead just for the heck of it we'll say our airplane cost eighteen thousand and you just want to realize that most the costs and your airplane insurance isn't the liability portion it's the whole insurance portion so what they're going to pay you in case you do damage the aircraft and also the deductibles and airplane insurance while we're on the topic are pretty cheap usually about 250 bucks for deductible so nothing too bad there. Coming over here to financing and depreciation well we're not going to assume a loan here we're just going to assume that we had the cash to go by the airplane in the banks so we got $18,000 out of the bank but we do factor it at 3% here just because that $18,000 could probably be invested in something earning 3% and if it's not earning as 3% let's tied up in the airplane well it's theoretically costing us five hundred forty dollars a year so that goes into our total annual fixed cost. To be totally fair here and objective that's what it's costing us to have that money tied up in the airplane next for fuel cost a gallon well right now it's four bucks a gallon here but I realize that's cheap compared to most parts of the country. So let's just say it's $4.50 a gallon and your oil costs per quart right now I can buy at the FBO for about $5.50 a quart so we'll plug that in there and total hours flying let's say let's just start for a starting point say we're going to fly 100 hours a year so we come down here in our variable cost per hour so variable cost per hour means when we just fire up the airplane go fly fuel everything included is $43.43 pretty darn cheap. Our total cost per hour that we expel this is number and the green here that we want to use when comparing it to renting an airplane from the FBO say we can rent a 150 from the FBO for like eighty nine bucks an hour. Well here even after we pay our tie-down our insurance the cost of having the money tied up pay for the annual pay all the maintenance pay everything it's still only sixty five bucks an hour if you're flying in 100 hours ear now obviously that number goes up if you don't fly hundred hours a year so let's say we fly 50 hours here well now we're at 87 dollars total costs per hour so now we're getting close to FBO type rail prices however the FBO in venice actually charges 150 or I'm sorry hundred twenty dollars an hour to rent a 150 just pretty crazy so even if we only fly let's see here 25 maybe 28-30 hours a year we're still going to be better off don't own our own airplane even if we only find 30 hours here and of course the more we fly the more reasonable it becomes to own your own aircraft if you're going to do some time building say you're trying to get commercial pilot certificate you're going to go 200 hours well 54 bucks an hour you really cannot beat that is a lot cheaper than you're gonna pay anywhere else and when we look here at variable cost per hour remember if you just want to go fly an extra hour it cost you forty three dollars is all so if I just fly to your one hours ear well it just cost me another forty three dollars all doesn't cost me the whole 54 that we factor down in there and then variable cost per mile as far as driving do you want to fly or drive so you buy your own airplane you used to commute a lot and you say well now that I own the airplane maybe I'll fly it more instead of driving what about 46 cents a miles which you can figure if your cruise in about 95 miles an hour and which is pretty typical for a Cessna 150 it's capable of doing 95 miles an hour and cruise plate maybe even faster if you clean it up polish it up real nice so yeah 46 cents a mile it's comparable to driving truck you know to go somewhere so that's some you know pretty reasonable rate of owning a Cessna 150 it's pretty darn cheap now you may say yeah well but John I don't fly 50 hours a year and this is not economical for me to do I only fly 10 hours here and that's crazy I can't pay two hundred sixty three bucks an hour just to own my own airplane I'd be better just renting from an FBI even if it was $120 an hour and yeah yeah you're right I mean it's you know it's just what it cost so basically what if you just found a couple friends that were in the same boat as you that maybe you all only flew 1015 hours here well if you got four guys and you all fly 15 hours here you'll have 60 hours now all of a sudden all of you can fly for 80 bucks an hour so as soon as you throw us some extra people in the mix and start using the airplane a little bit more becomes real economical that's where clubs come in and even you can say well yeah but clubs charge monthly fees well this number takes care of all that if a club with four guys you know was formed and you flew 15 hours a year each well it'd be 1,200 bucks a year each would cover all your expenses and all your flying and everything so that 15 hours or even if it's only 10 hours each well it's still a pretty reasonable rate now it's 98 bucks an hour so if you do decide you know okay I'm gonna fly 25 hours a year and I got my buddy he's going to fly 40 and I got my other buddy he's gonna fly 25 and he all get together any fly 90 hours a year the airplane starts getting really really cheap and very really affordable and it makes sense to own one this again covers all of your expenses your annual your your insurance your hangar and all of that is all factored into that one number now if you put a bunch of people on the airplane four or five different guys are flying it insurance might go up a bit so you're gonna have to kind of take that into account maybe that would make that number come up just slightly but not much again insurance is fairly cheap on an airplane as long as nobody has any accidents or any you know big things on their record so it really is a good thing to consider buying and owning an airplane and if you're just looking at it for the purpose of time building you may say you know one of the things might notice is oh well this financing depreciation well what about depreciation the airplane depreciates well we're talking about buying a 150 from like 1960s 1970s they're not going to depreciate a whole heck of a lot timewise now as far as putting more hours on the airplane there might be a slight amount of depreciation but the engine deposit really covers that and when you put a brand-new engine on the airplane from the engine deposit that bumps of a you're playing substantially on the market so depreciation of the airframe is not really a concern here so if you can find some guys and you can all fly reasonable amount of time it makes pretty good sense to get together and form a little Club and own your own airplane rather than having to rent from an FBO or rent from a flight school so just kind of use this little spreadsheet here and try to figure out what a good break-even point would be and what we'll do is we'll throw this spreadsheet up on our website on flight Mike alpha comm so you can download it we'll throw up a couple others do some other videos comparing there between owning like a 150 and maybe a fabric airplane like a champ and maybe comparing the cost of flying or striving in a airplane that you use to really go somewhere like a like a Mooney or something like that it goes a little faster so one other thing we want to show you here is what we actually experience because all these fictional numbers are all fine and dandy but what did we actually experience our cost to be four over the course of a year owning an airplane flying at 400 hours so we flew 400 hours these are our actual maintenance expenses and what we actually paid for fuel oil all of that and it came down here we paid 14,000 by the airplane we sold it for 15,000 actually when we're all said and done we didn't factor in the extra thousand we got back in here but you know I mean if you did factor in that extra thousand if you took a thousand off total fixed cost I would be pretty substantial there and showing in your hourly rate so here's what it actually costs us was 49 bucks an hour to fly our airplane 400 hours over the course the year paying for all the hundred hour inspections the annual all that sort of stuff all the meetings everything tie down insurance all out the door 49 bucks an hour pretty good deal so definitely encourage you guys to look into it and like I said we'll do some other videos comparing some other airplanes to purchase throne leave us a comment in the comments below about what kind of airplanes that you'd like to see us compare and contrast one thing I want to point out before we go is these maintenance rates here um can go up or down if you have every single little thing done on the airplane and every time a screw comes loose every time you know anything bothers your light bulb burns out you call them Kanak and you're paying 100 bucks an hour some of these prices are probably to go up and that's going to affect this number here a little bit but conversely if you do a lot of the work yourself like you help out on the annual in you you'll do some your own oil changes own break changes tire changes things like that that's really going to help the cost and if you can find a good A&P on the field that'll let you do a lot of your own work and supervise you and sign off the work as you know being done in accordance with the service manual and he's looking over your shoulder then that can see quite a bit of money there too and decrease this number to make it even more affordable so thanks so much for watching make sure you give us a thumbs up and subscribe to our channel to keep up with all our latest videos if you have any questions at all leave them in the comments below let us know what you think about what would be the best airplane to own what's the most affordable airplane to own with a lowest total cost of ownership flying maybe about 50 to 100 hours a year and remember if you can't fly everyday then

Channel: FLY8MA.com Flight Training

Views: 743,193

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Keywords: Flight Training, fly8ma, online ground school, private pilot license, fly 8ma, fly 8ma.com, pilot, aircraft, aviation, cessna, airport, how to, flight vlog, airplane, flying, plane, checkride, fly, vlog, mzeroa, What it Costs to Own Your Own Airplane, buying your own airplane, buying an airplane, owning a airplane, owning, buying, cost per hour, cost, friendly skies film, steveo1kinevo, mraviation101, m0a, Captain Joe

Id: OKDvVL1qPVk

Length: 14min 18sec (858 seconds)

Published: Fri Dec 09 2016