Hi All
Am looking at purchasing a 2004 C22. Could someone give me a cost per month for the aircraft to just sit there and not fly. I have to go worse case so just sitting there without the engine running would give me a real enough cost. Thanks in advance for you answers. And yes any and all costs (do not include any interest)
In reply to:
I have to go worse case so just sitting there without the engine running would give me a real enough cost.
Sitting there, not running is the way you calculate real costs . . . really?
Well then, if you pay cash, I guess it doesn’t cost you anything.
But you autta spend at least $50 bucks and join COPA. There are several hundred posts on this very subject posted within the last 30 days alone.
A 2004 SR22, “just sitting there” probably costs…
Assuming you pay, say, $325,000 for it,
$16,000-$32,000 in cost of capital per year (what you would earn on the money if it were invested earning 5%-10%). A little more if you finance it.
$15,000-$20,000 in loss of market value per year (depreciation) for the first year (since it’s already well depreciated), less in subseqent years. Probably about $50K over 5 years, at which point it won’t depreciate any more. (A new one would be more like $40-$50K the first year.)
So, call that $31,000-$52,000 out of your pocket the first year compared to if you keep your money invested.
Add what you pay to hangar it, any taxes you pay on holding it, any sales tax you pay for buying it.
If you actually fly it, maybe add $10K. But the real cost isn’t in the flying, it’s in the owning.
In reply to:
A 2004 SR22, “just sitting there” probably costs…
Assuming you pay, say, $325,000 for it,
$16,000-$32,000 in cost of capital per year (what you would earn on the money if it were invested earning 5%-10%). A little more if you finance it.
$15,000-$20,000 in loss of market value per year (depreciation) for the first year (since it’s already well depreciated), less in subseqent years. Probably about $50K over 5 years, at which point it won’t depreciate any more. (A new one would be more like $40-$50K the first year.)
So, call that $31,000-$52,000 out of your pocket the first year compared to if you keep your money invested.
Add what you pay to hangar it, any taxes you pay on holding it, any sales tax you pay for buying it.
If you actually fly it, maybe add $10K. But the real cost isn’t in the flying, it’s in the owning.
Don’t forget insurance … 3,000 to 12,000 depending on experience and ratings.
Stuart