"Roger (K8RI)" wrote in
:

On Wed, 13 Jun 2007 02:45:15 GMT, "Marc CYBW"
wrote:

Hi group,

Good arguments for skipping the SR20 so far, but......

..... one of the other fractional owners in our group looked at the
possibility of a few of us buying one of the 182s (as opposed to the
club rental beater) and suggested the following reasons for upgrading:

- the big red handle on the SR20
- the fun and challenge of flying a technologically current plane
- the flexibility of availability of 16 people in 2 planes vs. (say) 6
in one plane (the 182 shared among 6)
- the upcoming engine overhaul on the 182
- laying off the risk of repairs, etc on the fractional operator
- the red carpet treatment of fractional ownership (scheduling, ramp
service, etc.)
- the big red handle (did I mention that?)
- the fun of a new airplane (did I mention that)
- the O2 system for mountain flying
- the big red handle when you're over the Rockies at 15,000 ft.(did I
mention that)
- the hassles of setting up a limited corporation to (maybe) limit our
liability

So, for an increase of about 50% in cost for a 50 hr year, he suggests
we go for it.

50%?

Around here it'd be 300 to 500% when the entire cost of the fractional
ownership is taken into account. Just the hourly rates are well over
double that of a 182 unless you are talking a 182 RG. Add to that a
very large chunk of change for buying in plus the tremendous amount of
training you will need from Cirrus to maintain currency.


Seems logical so far.

Comments?

Marc


I built a spread sheet several years ago when the fractional owerships
were offering a new C-182 and compared it with a rental Piper Arrow 200.
Using 0% for the lost opportunity cost of the down payment, it still took
200 hours/year before the fractional ownership was only 50% more than the
rental cost. At 5% interest for the opportunity cost of the down payment,
I would have needed 250 hours to have the fractional ownership only be 50%
more than renting.

I then did the comparison between the fractional C-182 and used double
the Arrow 200 rate to guess at the rental rate for a C-210. At that point,
with 5% interest rate, the break even was 150 hours. At 50 hours, the
fractional C-182 was 20% more than 50 hours rental for the C-210.

If someone has the buy-in, monthly charges, and hourly costs for the
various plans (silver, gold, platinum) for a fractional SR-20 or SR-22 and
the currently rental rate for a C-210 or C-182 + monthly flying club
membership, I'll see if I can find my old spread sheet and plug current
numbers in. I'll use current 10-year t-note yeild for the interest rate on
the opportunity cost of money.

--
Marty Shapiro
Silicon Rallye Inc.

(remove SPAMNOT to email me)