Buying a Cessna 150 to build time
#12
Great idea! This is the type of creativity future pilots are going to need to lower costs associated with flying. Turn it into a learning opportunity all around! Form an LLC such as "123ABC Aviation, LLC" to purchase the aircraft. Become the manager, run it like a business, do aerial photography, etc? Keep track of your maintenance hours under the supervision of an A&P to get a signoff for an A, P or both one day. Investigate tax advantages like donating time to charity, medical supply transport, etc. However, always remember the old saying, "If you want to make a large fortune into a small one, invest in aviation. Proceed with caution and do your due diligence!
I've been there and done that! In the end, I considered myself fortunate to break even. However, today the costs of flying are so much higher it certainly is worth a look!
I've been there and done that! In the end, I considered myself fortunate to break even. However, today the costs of flying are so much higher it certainly is worth a look!
Last edited by hypoxia; 03-23-2013 at 01:31 PM.
#13
Gets Weekends Off
Joined APC: Jun 2010
Position: 747 Captain, retired
Posts: 928
I am interested in buying a 150. In theory I'd buy it, fly it like crazy for a few months, then sell. All in hopes to have no maintenance issues and only plan on flying for 200-300 hours. The cheapest 150 around to rent from a flight school is $87 an hour so if all went to plan it would work out well. I know nothing in aviation goes to plan but i can still hope. Any suggestions, previous experience with this, or ideas would be appreciated.
I purchased an airplane back in the early 70's and put about 800 hours on it and sold it in 1980 for exactly what I paid for it (it was a 72 Beech Sport with damage history). But between those years maintenance issues would always creep up (including some major engine work because I bought the airplane with damage history and the AI (Mechanic) failed to repair it correctly. But if you calculate it all out, owning for the sake of "time-building" is a real money saver and convenient. Best of luck...
#14
You will have maintenance expenses, trust me. It can be a radio issue, ELT Battery, AD's or as simple as an oil change every 50 or 100 hours. You will also have tie-down expense ($75-$100/month) and insurance (if you don't finance the plane, Liability Ins. at the very least)
I purchased an airplane back in the early 70's and put about 800 hours on it and sold it in 1980 for exactly what I paid for it (it was a 72 Beech Sport with damage history). But between those years maintenance issues would always creep up (including some major engine work because I bought the airplane with damage history and the AI (Mechanic) failed to repair it correctly. But if you calculate it all out, owning for the sake of "time-building" is a real money saver and convenient. Best of luck...
I purchased an airplane back in the early 70's and put about 800 hours on it and sold it in 1980 for exactly what I paid for it (it was a 72 Beech Sport with damage history). But between those years maintenance issues would always creep up (including some major engine work because I bought the airplane with damage history and the AI (Mechanic) failed to repair it correctly. But if you calculate it all out, owning for the sake of "time-building" is a real money saver and convenient. Best of luck...
You might get lucky and sell the plane for the same price you paid or slightly more, it happened to a friend of mine, but it's not a good idea to plan for this. Usually with the capital cost, your payments, and then subtracting what you'll sell it for, you pay pretty much what the FBO charges per hour (no mystery there).
#15
Gets Weekends Off
Joined APC: Jun 2010
Position: 747 Captain, retired
Posts: 928
If one wants to know what it's like to own an airplane cost-wise, take the hourly rate you pay at the FBO, and subtract $3-5. There you have it. That's your per-hour cost you'll end up paying. You might be able to subtract more like $10 if you can get the same kind of deals they can on maintenance (usually they employ a mechanic or have an agreement with a local one to perform maintenance, so it doesn't cost them as much). I've run the numbers more than a few times and the FBOs minimize their own costs where they can and they aren't pulling in tons of money on the deal, often it's the true cost of operating the aircraft plus just a little bit for the profit. It's not like you're going to save $30 or 40 on the per-hour cost. It just doesn't work out. Insurance, insurance requirements, consumables, odds-and-ends, oil changes, unexpected maintenance, etc.
You might get lucky and sell the plane for the same price you paid or slightly more, it happened to a friend of mine, but it's not a good idea to plan for this. Usually with the capital cost, your payments, and then subtracting what you'll sell it for, you pay pretty much what the FBO charges per hour (no mystery there).
You might get lucky and sell the plane for the same price you paid or slightly more, it happened to a friend of mine, but it's not a good idea to plan for this. Usually with the capital cost, your payments, and then subtracting what you'll sell it for, you pay pretty much what the FBO charges per hour (no mystery there).
#16
On Reserve
Joined APC: Aug 2013
Posts: 24
Definitely seems like a gamble but no different than buying a house or car and probably more similar to a boat. Better to have a friend with one. I think if all goes well than it could be a great idea. Without the benefit of hindsight who knows? If things go wrong they could go terribly wrong. Seems like a gamble either way. I think I would go with Apokleros and find a job and that way you can start climbing up the ladder. Good luck.
#17
Gets Weekends Off
Joined APC: Sep 2009
Posts: 134
Not knocking the buy the aircraft idea, but, you plan to fly 200 - 300 hours on it. If you rent for $87 an hour and fly 200 hours, that's a known cost of $17,400 or $26,100 for 300 hours. no rent, no maintenance, no hangar/tie down, no 100 hour, no oil change, pretty much nothing. you can get a decent 150 for $17,000 but you will have maintenance costs. something will need to be fixed. also, are you paying cash? financing? you'll need a down payment and insurance in case of a incident or something in order to cover the loan.
#18
Not knocking the buy the aircraft idea, but, you plan to fly 200 - 300 hours on it. If you rent for $87 an hour and fly 200 hours, that's a known cost of $17,400 or $26,100 for 300 hours. no rent, no maintenance, no hangar/tie down, no 100 hour, no oil change, pretty much nothing. you can get a decent 150 for $17,000 but you will have maintenance costs. something will need to be fixed. also, are you paying cash? financing? you'll need a down payment and insurance in case of a incident or something in order to cover the loan.
#19
Gets Weekends Off
Joined APC: Jun 2010
Position: 747 Captain, retired
Posts: 928
I am interested in buying a 150. In theory I'd buy it, fly it like crazy for a few months, then sell. All in hopes to have no maintenance issues and only plan on flying for 200-300 hours. The cheapest 150 around to rent from a flight school is $87 an hour so if all went to plan it would work out well. I know nothing in aviation goes to plan but i can still hope. Any suggestions, previous experience with this, or ideas would be appreciated.
#20
Gets Weekends Off
Joined APC: Jun 2010
Position: 747 Captain, retired
Posts: 928
Great idea! This is the type of creativity future pilots are going to need to lower costs associated with flying. Turn it into a learning opportunity all around! Form an LLC such as "123ABC Aviation, LLC" to purchase the aircraft. Become the manager, run it like a business, do aerial photography, etc? Keep track of your maintenance hours under the supervision of an A&P to get a signoff for an A, P or both one day. Investigate tax advantages like donating time to charity, medical supply transport, etc. However, always remember the old saying, "If you want to make a large fortune into a small one, invest in aviation. Proceed with caution and do your due diligence!
I've been there and done that! In the end, I considered myself fortunate to break even. However, today the costs of flying are so much higher it certainly is worth a look!
I've been there and done that! In the end, I considered myself fortunate to break even. However, today the costs of flying are so much higher it certainly is worth a look!
Keep in mind, That after 5 years, the IRS will consider your losses are due to a hobby and that's the end of your write-offs
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