Quick question about payment!
 

Hi there (my first post) :)

Just a quick question really. Ive managed to save up the amount of money i need to complete the BASIC hours of the PPL. The airfield i wish to go to offers a discount if i pay it all now. Is that a good thing to do or not?

thanks for any comments

James

Well, if they offer a substantial discount, then that's a pro. But the cons are that you are likely to lose your money if you get into a problem while flying (eg. medical), get into trouble with the school, or the school gets into trouble. Lots of people have lost serious amounts of money that way.

You might want to find some way of getting some additional security. For instance pay the sum via credit card. If the school goes bankrupt, you can claim your money back via the credit card company. Or negotiate with the school that your money is put in escrow or something, to be released to the school only after each lesson, and to be released to you only if the school defaults or if you lose your medical. Or something.

If the discount is only a few percent, I don't think I would bother and just pay as I go. If the discount is substantial, well, read the contract carefully, see if you can do a check on the financial status of the school, see if you can obtain some extra insurance and go for it.

Hi James. It is very tempting to pay up front for a reduction in costs. Personally I wouldn't. If the school goes bust, your money goes too. You may decide not to proceed and have a problem getting anything back. You may find your chosen airfield doesn't suit, again they have your money.
It may all go well, but pay as you fly is the best way.
Whatever you decide, enjoy yourself.

You should get at least 5% p.a. from the bank if you leave the money where it is (assuming it's in a reasonable interest-bearing account).

So factor that in to your calculations, especially if you need to spread the hours over several months.

SD

Hey thanks! I think the price is £6150 if you pay it all now but i think it's about £400 or £500 more if you pay as you go. Thats just off the top of my head as im at work! gotta push the Malaysian Airlines soon!!! Thanks for the quick response.

James

Don't pay up front and put the money into a high interest account, drawing it out as required. You could get a couple of hundred interest over the year.

Apart from the school going bust, the other major concern is that you may not like the school, or your instructor. There are lots of posts by people here, who did not like their flight school, and the general advice is always to change schools. Not so easy to do if they have your money (and they know that too).

Three words:
No, no and no!

Tell them you will pay directly after each lesson...cash, and ask for the school to give the same discount.

I also find a good system is to indead pay them directly now up front, and ask them to give them something to you that you will give back after your training ( a car, a plane, some computers, a copier etc...)

:p

Will that work!??! I think i'll pay as i fly now, seems the right thing to do! I want to do my PPL at Wycombe air centre as it's real close to where i live.

Many thanks

James :ok:

Three more bits of advice
 

1 Don't pay up front.

2 Only pay as you fly.

3 Never give a flying club more that £200 (some clubs give a small discount for staying in credit and that is worth a £200 risk)