When someone first considers the idea of airplane ownership, the first thing to immediately spring to mind is the indirect and direct costs involved in the buying process.
In all honesty, there are many different cost factors involved in airplane ownership.
The obvious one is the actual purchase price. But if you think your expenses are going to end there, you are sorely mistaken.
There is a laundry list of various other expenses including fuel, oil, upkeep, taxes, tie down costs, hangar costs, engine reserves, inspections, ongoing subscriptions and much more.
As you can see, owning a private airplane definitely requires ongoing expenses.
If you have the money and you’re up for the challenge, it’s definitely worth it to own your own private plane.
Indirect Airplane Expenses
Buying the Airplane
The first indirect cost is buying the airplane itself. It’s very easy to calculate this expense.
If you’re paying cash, you only have to pay the asking price.
If you’re financing it, you must factor in your down payment, the amount of the loan, and the interest rate being offered by the lender.
Next, you’re going to have to obtain airplane insurance in order to legally fly your private plane. Contact an insurance agent to get a quote for insurance for your airplane. You should figure out this expense prior to ever buying the plane.
Yes, you are going to have to pay ongoing hangar fees unless you own your own airport or FBO.
This is easy enough to determine.
First, figure out if you’re going to leave your plane in an airport or an FBO. Once you’ve made this decision, contact your storage facility of choice and ask them to tell you about available payment options.
Some people will not need to pay for additional subscription services.
Depending on when your plane was first manufactured, you might need to subscribe to a monthly database update. This ensures your database is legal so that you can navigate by GPS.
If you intend to own a private airplane, you’re going to have to pay taxes. The only exception is if the airplane is owned by a tax-exempt corporation.
Your tax payment is going to vary depending on which state you keep your airplane in. As an example, you’ll have to pay 6% of the purchase price if you intend to maintain airplane ownership in Florida.
In another example, things are very different in the state of North Carolina. You’ll have to pay a $1500 flat tax, plus property taxes which can get very expensive.
Direct Airplane Expenses
Airplane fuel certainly isn’t cheap.
This expense will vary depending on how often you plan to fly. Plus each airplane is going to have different fuel consumption needs.
To keep your airplane in tiptop shape, with the ability to pass inspection so that you can continue to fly, you’ll have to pay for scheduled maintenance.
Nobody loves paying for maintenance, but it’s unquestionably an expense that is worth its weight in gold. It will guarantee that your plane is in top working condition.
And if you want to fly regularly, you’ll need to keep your plane in good working order for everyone’s safety including your own.
According to AERO, the seller of aircraft hose fittings, “For over 40 years, A.E.R.O. has been the “In-Stock” choice for high-quality aircraft parts.”
So, if you need high-quality maintenance parts and products that you can trust, AERO is definitely a great company to rely on.
No one said airplane ownership was going to be easy. But it’s definitely worth it if you fly often and prefer to avoid the hustle and bustle of commercial airline flights.