Are you trying to figure out if plane ownership is right for you? Read this article to understand the cost of owning a plane.
Perhaps owning a plane is something you’ve envisioned since you were small. You imagined getting your pilot license and being able to jet off to Miami at a moment’s notice.
Now you might be in a financial position to consider your dreams becoming a reality. But what about the upkeep and maintenance? And where are you going to store it?
These are all valid concerns. In this article, we will go through and explain the cost of owning a plane to help you decide whether plane ownership is for you.
It’s important to way up all your outgoings and options before you make a big financial commitment such as your plane.
Let us guide and instruct you on this, so you can make the best decision for you. Soon you might be cruising the skies, ready to touch down in Miami for a beach weekend and a nice glass of red!
The Upfront Cost of Owning a Plane
The first thing to consider when buying a plane in 2020 is the upfront costs. Is this something you can financially afford outright or will you need to take out a loan? And are you going to be able to fit those monthly payments into your lifestyle?
Ultralight aircraft, which are single-seat, single-engine planes can retail for around $8,000 to $15,000. If you just fancy solo flights without passengers this might be the perfect aircraft for you.
Single-engine planes which usually hold two or more people are much more economically pragmatic and easier to operate and run. They can range in price anywhere from $15,000 up to $100,000.
A multi-engine plane is going to set you back around $75,000 to $300,000. There is a range of different price points and styles which can appeal to budding plane owners.
Remember if you aren’t lucky enough to buy the plane outright, maybe sure you factor in the interest amount you will have to pay on top of your existing loan. This will differ depending on what kind of loan and the length of time you pay it back.
Where Are You Going to Store it?
Okay, so you’ve chosen the perfect model and make of your plane and are ready to take to the skies. But where are you going to store your plane?
You can usually choose to store it in a hangar or the outdoors at an airport. Storing your plane outdoors tends to be cheaper, but remember you are exposing it to the elements which will slowly add to the wear and tear.
Rural airports are usually cheaper than ones closer to a large city. The average cost of a hangar per month is $275, plus $100 for tie-down equipment should you require it.
This can be a minimum of around $3,300 a year for storage fees. To ensure that your plane is stored correctly and safely.
Gas and Oil Costs
This can be another rising cost to factor in. Planes need to have their oil changed about every 50 hours of flying time or every four months. This averages out at around three changes a year.
Aviation fuel is significantly more expensive than automotive fuel, which is usually around $5 a gallon. Depending on how much you are planning on flying your plane will significantly affect how much you spend on fuel.
A small plane will typically burn around 5 to 10 gallons an hour, so if you are spending 100 hours flying a year that could be, on average, over $3,000 a year on fuel.
If you plan on buying a plane you need to make sure you have the comprehensive and correct insurance that provides the right kind of liability for any damage and accidents.
The last thing you want is your brand new plane getting damaged and your insurance not being able to cover the reparation costs.
Insurance for a small aircraft can range between $1,200 and $2,000 a year. Make sure you make the informed choice for you and your flying needs.
Inspections and Upkeep
It’s important to keep a fund available for any unforeseen costs or repairs you might have to carry out on your aircraft. They recommend around $5,000 just in case you might need to do something quickly.
Small aircraft are also required to have yearly inspections to ensure the safety and upkeep of the aircraft. These can range between $600 and $1,200 a year and are mandatory to regulate the business of private aviation.
Upgrading Your Aircraft
What is great about the modern world is the pace at which technology moves and changes, however, this might lead to your aircraft falling behind what is available in terms of safety.
Plan into your budget that you might need to upgrade parts of your aircraft’s technology or infrastructure at around $3,000 a year. You might have some years where you do need to spend anything.
Although the pot of money is available if you do need to purchase some additional aviation technology.
This also extends to more cosmetic needs. Perhaps you might want to reupholster your seats or seat covers. Maybe you want to put in a mini-fridge or redo the lights? It’s important that your plane looks as good as it flies!
Where Can I Find Out More?
We hope this has given you more of an idea of what the annual cost of owning a plane can be and add up to. It is essential to consider all these hidden costs so you can make the best decision for you!
If you want to find out more about plane ownership or topics on travel, technology, and health, why not check out some of our previous blog posts?
Whether you are wanting to improve your lifestyle or find out about kayaking, we have plenty of articles to keep you informed!