SR22/T: How to compute ownership costs, depreciation?

Guest Discussion
#1

Folks,

A few years ago I tested a SR20 and was not convinced and had posted a thread about it. I have not had a chance to try a SR22 yet but will soon and I am still trying to convince myself that I should like the side yoke.

In the meanwhile, should I go for a SR22 or SR22T G5 in the near future, what kind of operating budget should I plan for. There is a lot of things I can figure already (such as hangar costs, annual costs, fuel costs, etc) but there are a few things I need help with:

  1. What kind of reasonable depreciation should I factor in. For example on aircraftcostcalculator.com I can see some tables and numbers. One shows depreciation for the first 5 years like this: 14.29%, 24.49%, 17.49%, 12.49%, 8.93%. Those numbers seem very high to me (I don’t know how many flight hours a year) because that would mean 50% in 3 years. So it is a question more for those who have already gone thru the process of buying/selling. Let’s say it is a new purchase and I fly it 100 hrs a year, everything else is well maintained, etc, what depreciation could be expected after 5 years (knowing that there likely will be a G6 version coming in the meanwhile)?

  2. For those using their hangared SR22 G5 or SR22T G5 about 100 hrs a year (for personal use, so no tricks with tax deductions, etc) how much hourly cost do they end up with (all included but please mention insurance premium separately as insurance obviously deeply depends on qualifications/experience/location, I personally have 600 TT PPL-SE/ME+Instruments)?

Thanks again,

Jeff

#2

Jeff,

Join COPA as there are lots of other great discussions on this very topic once you become a member. You’'ll hear it 100 times if you hear it once - best $65.00 per year you can invest in!

Brian

#3

Jeff,

The depreciation schedule you list above has to do with tax depreciation purposes, not for actual market depreciation. Each model SR22 depreciates a little differently but I felt 6-7% / yr is a good budgetary estimate for actual market depreciation.

Don

#4

Hi Jeff,

I agree that the cheapest investment in knowledge that you will make is to join COPA for $65. I joined a year before I bought my first Cirrus.

build yourself a spreadsheet for the fixed costs: debt service, hangar, insurance, etc…

We pay $100/hour to a joint checking account for depreciation and variable costs. Covers oil changes, subscriptions for XM weather and databases, reserve for annual, tires, brakes, etc…works just fine.

fuel burn in our turbo is at about 18 gph for planning purposes.

we pay for our own gas separate.

#5

Depreciation is simple to calculate:

  1. Buy a new G5;

  2. Close your eyes;

  3. When its value drops like a rock, you won’t even see it!

Same applies to DOC. What you don’t know can’t hurt you.

#6

I would consider it a sunk cost. Like buy it and you will love it. You don’t want to be the richest man in the cemetery. Guaranteed to put a huge smile on your face. [:D]

I would say budget a lot.

Seriously, the Cirrus rep can provide you with an ownership cost spread sheet.

I saw Ken Goble at the Prescott AOPA fly in today. I shook his hand and thanked him for putting me in such a wonderful plane.

Best of Luck,

Jim Rogers

#7

I’d say about $1k per hour in operating cost (amortized over all yearly expenses ) and another $1k per hour in depreciation over the first 5 years unless you are paying cash then reduce by $500/h. Assumes you fly about 100-150h per year.

#8

Thanks a lot Guys,

Yes, I should need to subscribe but I would prefer not until I have more certainty that I want to fly a Cirrus, so thanks to those who kindly answered. Kevin, $1500/hr seems high to me (assuming no financing). I understand, also, that 100 hr/year is low and makes the numbers high. So I changed my table to use 150 hr/year, there is no reserve as, if I sell in 5 years, the next buyer(s) would deal with overhaul, etc. I understand that if I were to keep the plane forever then it might cost less as well (since no resale loss though there would be added overhaul costs).

Can you tell me if this table below seems reasonable:

SR22TCostProjections-02OCT16.jpg
SR22TCostProjections-02OCT16.jpg1300×1132 339 KB

Thanks again.

Best regards,

Jeff

PS: It seems it is a bad idea to buy brand new though, I need to think about that…

#9

Your numbers look to be in the ballpark though you aren’t accounting for opportunity/capital costs. Also you appear to be using a price for a lightly optioned aircraft as opposed to typically equipped, perhaps that is intentional if that’s your desired config (look at the price for the “GTS” package for a better idea of real pricing).

Big picture though if you are prepared to shell out hundreds of thousands of dollars and then the better part of a hundred thousand a year worrying about saving the $65 fee to join COPA seems misplaced. Membership is well worth it even if you end up not buying a Cirrus and if you are still trying to make up your mind the amount of info you’ll gain access to is immense. I can’t imagine trying to make that decision without joining.

#10

I agree. You’re about $300,000 short in your acquisition cost. That being said the warranty will take care of some items on that list but one way or another you still pay for it. The cost of having money tied up is a real number.

#11

Well if you get a fancy G5 then with sales tax your in at $900k plus. In 5 years it’s worth half that so $500/h loss
Without any expenses. 150h per year is probably above average over 5 yrs.

Either way it’s too expensive to think about!

#12

Thanks again Guys,

I want to reassure that I am not trying to save $65, I have tens of monthly/yearly/whatnot memberships going on (for aviation and not) so I will likely subscribe soon once I make up my mind.

It seems there is a good consensus that a new plane would lose 50% of its value in 5 years and that is pretty bad news, it kind of strongly make the case to buy a low time 2 or 3 year old plane instead that has a 5-year warranty.

As far as the purchase price is concerned, I considered a standard model because I believe I would be happy with a stock model. It is insane to spend $37K on a yaw dumper plus 12-inch screens (one already spends too much time looking at screens), or $40K for digital backup instruments and Flight Stream 210, or $30K…59K for some premium appearance nobody can see when the plane flies or is in its hangar, which is 99.99% of the time (I shall applaud Cirrus marketing though). Only FIKI, at $50K, seems remotely appealing to me but even so, I live in Cal. The 5-year warranty, at $18K, does seem a good idea. The A/C, that costs like a new car, adds 55 lbs and would be used sometimes, I am not sure that is a good option.

I can rent a fully loaded 2016 SR22T for $475/hr. I am surprised a FBO can offer such low rental prices considering the feedback you guys gave me. More thinking to do.

Thanks again.

Jeff

#13

7510.cost of ownership meme.jpg

#14

If you don’t see the value in all the fancy options you might consider looking at planes even more than a couple years old. Owning an older Cirrus out of warranty doesn’t have to be scary and will certainly have a lower total cost of ownership than a newer airplane with a warranty. You could get a plane just as capable including FIKI going as far back as 2009. If you don’t care about that either you can go back even further, back to the Avidyne models which lack some of the newer fancy technology but are still more technologically advanced than most of the GA fleet. The savings are tremendous.

There is plenty of info on all of this on the forums that you could see if you’d join. I know this is starting to sound like a cult pitch but I think if you joined you’d understand why this is something that can help you decide rather than something to do after making up your mind. The wealth of information is immense. People often join years before committing to buying a Cirrus. There are also many members who no longer own a Cirrus so if you’re interested in other competing aircraft you might find valuable perspectives on the comparison as well from people who’ve owned both. I understand subscription fatigue but there’s a bit more at stake here than cancelling your Netflix subscription.

#15

It is a complete myth that new warranty planes are less expensive to operate. You can buy a lot of Mx for several hundred thousand dollars. Heck, a new engine is cheaper than that [;)] Kidding of course on that. But warranties are not free.