N1165G was the first aircraft I purchased. It was not a cheap airplane, certainly not a “starter”. I paid $60,000 for this 1982 Mooney M20k with a runout engine. I didn’t have a plan on how it might play out. And, certainly, I did not have a clear financial plan. It was clear from my research that I wanted a K model Mooney, and had found it, but I really did not know what I was in for. I had the presence of mind to know that the engine, a Continental TSIO-360-GB4 was near the end of its life so I needed to be ready for that, but I really did not know what I was biting off. For example, I did not know that one of the prop blades was cut too much so it needed a new blade. Never thought of that one.
But, I had my own plane and kept it configured how I wanted. No one was going to abuse the engine, mess with the avionics, prang the gear without me knowing it, etc. Finally, I was the master of my own ship. I flew it for many, many years and cannot describe the pride and joy it brought me. I had issues with the engine, and the engine manufacturer of course. This in turn led me to a wonderful partnership that saved the day for me. If I knew then, what I know now :).
I have come to learn how important it is to really have a handle on all of the costs. I learned how important it is to have a plan. How an aircraft appreciates and depreciates is important to know. Finally, you must develop a plan on how you will exit from owning it. I wish I knew how difficult it would be to get proper mechanical work done, and how to manage the aviation maintenance industry much as we have to manage healthcare.
It is our goal to help you the aspiring, or current owner of a private aircraft to truly get a handle on what it means, in this section financially to own an aircraft.
There are several really important things for you, the aspiring or current owner to do to get a real financial view:
- Fully enumerate and capture ALL the costs of ownership
- Develop a budget
- Secure the services of a financial advisor
- Develop a full financial plan for your entire household, including the plane.
Only when you have accomplished these steps, honestly and fully, can you get a full appreciation and be secure in your ownership for the long term.
If you would like to speak to a financial advisor about your aircraft ownership dreams, schedule your free consultation.