On Thu, 07 Oct 2004 04:50:58 GMT, "Yeah_right"
wrote:

I really want to make a good decision on this so, I'm giving myself plenty
of time, two years, to get my ducks lined up. I've want either an Archer or
an Arrow with an IFR package.

I've started looking at and pricing hanger space at selected airports in the
Houston area where it'll be based. DWH prices it at $250 a month. Haven't
had a chance to look anywhere else as yet.

I guess what I'm looking for from the board is a breakdown on how much some
of you are paying for loans, insurance, tie-down and upkeep on planes with
similar packages.

Just some financial facts please. Other than the fun factor and the
knowledge that I'll have my own bird to fly whenever I please, I know the
cost of owning a plane is next to impossible to justify.

But I'm a recent empty nester, my source and income is stable, reliable, and
on the increase. I'm fairly young, late 30's, and feel lthat I've paid my
dues to my kid and now it's time I spoil myself.

An Archer will cost roughly as follows:

$1k/year insurance ($55k hull, $1M liability, $100k/seat)
$3k/year hangar (the $250/month is a great price by the way)
$3k/year annual and misc maintenance (this is a conservative number)
--------------------------------------------------------------
$7k/year fixed costs

Regarding a loan. If you have to finance, try to use a home equity
line to pay for the loan. Most home equities are in the 6.0% range,
and would be tax deductible for an effective cost of 4.0%. This is a
huge advantage over what you will find for conventional aircraft loan
rates, which are probably in the upper 7s or 8s now.

55k financed @ 8% for 20 years = $460/month = $5520/year

Direct hourly costs:
Fuel = 10gph * $3.00/gallon = $30/hr
Oil = $1/hr
-------------------------------
$31/hr

Other hourly costs:
Engine overhaul. An overhauled O-360 will cost close to $20k
installed, with a TBO of 2000 hrs, so this is $10/hr. Even if you do
not save an overhaul resever, your plane will depreciate at roughly
half this value ($5/hr) because of the increased engine time.

There are other costs too. Gyros, radios, paint, interior do not last
forever.

So flying approx 150hrs / year (which is more than most owners).
Hourly costs = 150 * 31 = $4650
Reserve costs = $1500
Finance costs = $5520
Fixed costs = $7000
------------------------------------------
$18670 / year

I'm sure you can own an Archer for cheaper than this, especially if
you can shop around, do some of your own maintenance, and get lucky
with (no) major maintenance.

One offsetting variable, used airplanes typically appreciate, which
can offset some of the costs, but I sure would not count on it - as
light GA has not shown much price growth in the last 2-3 years.

-Nathan