How to Buy An Affordable Airplane

Is Buying Your Own Airplane Affordable? YES!

If you thought buying your own airplane was out of your reach and only for famous people, think again. Perhaps a Lear Jet might be still out of the question, but not a single or dual prop plane. Many of these and other types of aircraft are more affordable than you think. Many time they are often the same price as purchasing an RV etc..So don’t limit yourself.

There’s a hidden rule amoung aviators that jests if you can afford a car, you can afford an airplane. This sounds good int theory, but everyone’s financial situation, status in life, and goals are different. But the truth of the matter is that if you can afford a car/boat/vacation home, then you can afford an airplane.

The car analogy comes from a calculation for a small single-engine airplane or light sport aircraft in the $50,000 or less range. Using an aircraft loan calculator such as this one from AOPA, we find that you can expect to pay around $400 per month for a 20-year loan with 6.5 percent interest depending on the loan term, interest and how much money you might be able to offer for a down payment.

Pilots can get a good deal on older aircraft but usually end up spending a significant amount of money on updates, such as new radios, a GPS system, maintenance and more to make it into something they can fly comfortably.

A $400 per month payment is very reasonable for someone that might use the aircraft often, especially if there is added value in it, such as business use, tax credits, and time savings.

But don’t forget that the actual purchase price is just one factor in the cost equation.

Aircraft operating costs can be divided into fixed costs and variable costs. Fixed costs are costs that don’t change, such as the loan amount, insurance, and hangar rental. Variable costs include fuel, oil and maintenance costs.

When you are determining how much you can afford, you’ll have to include these costs. You can get an estimate of aircraft operating costs on AOPA’s website or at conklindd.com.

For a small single-engine fixed-gear aircraft like a Cessna 172, operating costs can be between $100-$200 per flight hour.
Here’s a short list of costs to consider beyond the purchase price of the airplane:

Fuel
Oil
Regular maintenance inspections, such as the required annual inspection, avionics and instrument inspections.
Engine overhaul cost
Ramp tie-down or hangar fees
Insurance
Landing fees
Aircraft accessories, such as headsets, engine covers, etc.

A small airplane such as a Cessna 172 can cost up to $30 per hour in fuel alone during flight. If you fly 200 hours in a year, it’ll cost $6,000 in fuel alone per year.

Many pilots justify their aircraft purchase by factoring in the amount of time saved, the reduction of time spent at airports, and the flexibility to take off whenever they want, wherever they want to go.

There are also many ways to reduce the costs of ownership, such as co-owning, leaseback options, renting the aircraft out to others, or flight instructing if qualified. These all come with advantages and disadvantages, of course, but many pilots find that the costs are much more manageable by implementing one or more of these measures.