Buying into my instructur plane?

[gil_mor]

Hello,

I got my PPL about a month ago, I'm planing on getting all the ratings up to ATP as well as building hours so I could one day make a living as a pilot.

My instructor has a 1956 Cessna 182, old bird, but so far it treated us well.

He is offering 1/3 of the plane for 10k.

Money wise - it looks like a good investment (Roughly 40k for 3 years, instead of 53k renting (400 hours of flight).

He is 78, and has very few students if any, so I should have a lot of time to fly.

What do you think, should I go for it?
Thanks!

[M1ghtyDuck]

How old's the engine, does he have an engine fund? What's the hourly cost to fly it and how much of that is actual flying cost vs how much of it is contributions to saving for unprecedented maintenance costs? Bless his heart but at 78 what happens to his share if he dies?

There are lots of guides about for getting a share in an aeroplane, I recommend having a look if you haven't already.

[gil_mor]

Thanks for the post, valid points indeed.

I took your advice read a few of the guides, and my list of questions to him is getting longer, I've also added yours.

As far as I know - the plane is due to cylinder replacement in about 300-400 hours, and the estimate is $6700.
I don't think he has a "saving for unprecedented maintenance" fund, nor an engine fund.

My main concern is breaking the co-ownership - since by the time I get all my ratings and hopefully start instructing - I might have to move.

We'll have to figure that too.

I will meet with him tomorrow and mention these topics, see where it gets us.
Thanks again.

[Adios]

Nothing to add, but wondering if he bought it new?

[gil_mor]

Ha ;-)
No, I think he had it for 10 years or so.

[M1ghtyDuck]

You're very welcome. You're obviously thinking it through and preparing yourself well, I wish you all the best of luck.

[gil_mor]

We meet today, we will take it for a pre buy check, and to have the avionics looked at (PPT might need fixed).

Engine has 4600 hours, and 1000 since overhaul.

What I'm wondering now is - what are the chances of me being able to sell my share in 3 years from now (in case the co-owners wont want to buy it from me).

I don't think I'll need or be able to offered it - if I get to be a CFI Here are my numbers so far, tell me what you think.
First year:
Plane 10500
Insurance 500
Ramp 260
Annual 433.3333333
Fuel 8100 (150 Hours)
Oil 250
Small fixes 166.6666667
Total First Year 20043.33333

Second year :
Insurance 500
Ramp 260
Annual 433.3333333
Fuel 8100 (150 Hours)
Oil 250
Small fixes 166.6666667

Total Second Year 9543.333333

Third year:
Insurance 500
Ramp 260
Annual 433
Fuel 6000 (100 hours)
Oil 200
Small fixes 166.6666667

Total 3rd year - 9380

No flying year:
Insurance 500
Ramp 260
Annual 433.333333 (cylinder)
Fuel 0 (0 hours)
Oil 200
Small fixes 166.6666667

Total 1400 for just paying my dues and no flying

What do you say?
Is this realistic?

[Aztec_Flyer]

An old friend once told me....if it flies, floats or f**cks in the long term its cheaper to pay by the hour than to own....

[JamesTigris]

I did something very similar to you. Finished my PPL then bought a £10k share in order to facilitate hours building towards a CPL including some Aerobatics and the Night Rating.

The warning I would give is that I have now found myself with a very large amount of my training budget invested in a liabilty that, in the current climate I am likely to find difficult/impossible to sell.

On the other hand it is a very well run and active group and I have gained a huge amount of extra knowledge, experience and had a wider range of flying opportunities than I would have got from simply hiring from your average club.

I would say that if you're going to buy in, don't bank on being able to sell out in less than 5years and not make a loss on your investment that will outweigh any hourly saving. Buy into the group rather than the aircraft as the maths is never likely to add up to buying being cheaper.