Is it better to lease or buy an aircraft?

Question

I am looking into a cessna and it is like 3,500 a month or a year? And i am flying for Pleasure and maybe a couple of carter flights for my friends and family

Answer 1

Always remember the Three F Rule: If it flies, floats or f***s, it's always cheaper to rent. And, unless you fly more than a couple of times a month, rent by the hour, in the first F as well as the third one. You can get a C-152 for around $60/hour (wet! That means with gas in it!) and a C-172 for 10 or 20 more an hour, depending on where you rent. Costs of ownership, on the other hand, include hangering, maintenance, insurance and gas, none of which are cheap.

All of that's just my experience, and it could be outdated. For a more solid answer, do the math. Call around and see what the bird you want to fly rents for, then get a Trade-A-Plane and see what it sells for. Then see what you can get a hangar for, how much your local A&P charges, what AOPA insurance costs and how much avgas costs at your local FBO (about $5.50/gal, unless I miss my guess). Then make an informed decision.  

Answer 2

If by "carter flights" you mean carrying passengers or cargo for hire without the proper FAA oversight, you'll be breaking dozens of federal regulations, and they get real serious about that sort of thing.

I don't understand what you mean by "like 3,500 a month or a year".

Answer 3

As said before, you need to fly rentals for a couple of years until you learn more about what is available and what you need.

In general, it is always best to lease until your fixed cost reaches the capitalization breakpoint.  Your tax lawyer or CPA can advise you on your particular situation.

And remember you can't fly for hire, even for your friends and family, without a commercial certificate.  It is a federal offense, at the felony level, for a private pilot to accept compensation for piloting services.

Answer 4

Simple answer: if you don't know which is better, rent one.  You'll know when you reach the point that owning a plane makes more sense.

Answer 5

Well first you do not need to buy a new Cessna you can find some good older airplanes.  Cessna been making the 172/182 since the late 1950's and from about the mid 60's they are essentially the same.  Minor improvements but it does not at all make an older airplane a bad choice.

Second you real need to ask yourself how many hours a year will you TRULY fly.  Everyone thinks they are going to do a 100hrs a year, but serious if your not doing atleast 50 or more hours a year RENT.

There is nothing like owning your own airplane, having it available on your schedule, knowing how it last flew and that no one else flew it last and abused it.  But when you consider your monthly payments, insurance, tie-down, annual inspection cost, upkeep, etc it does not pencil out until you fly 50 hrs or more.

Now a decent alternative is to join a fly club or partnership where there is only a limited number of people using the aircraft.  You do get ownership rights, equity, and not a ton of new students abusing the machine.

Good luck

Answer 6

$3500 a month is a lot of money. Unless you're going to fly nearly every day, you're not going to get your money's worth. If you're just looking for the occasional pleasure flight, and sight seeing with friends and family you're probably better off renting a plane when you want to fly. If you're really going to fly enough to justify the expense, I personally would rather buy a used air plane. Leasing is an option if you don't know what kind of plane you want in the long run, but read up on all the responsibilities that go with the lease agreement. Do you still have to pay for the annual inspection? Are you responsible for maintenance? And compare the payment costs between a lease, or a loan to buy a plane. If you're still on the hook for all the maintenance costs for the lease, then what exactly is the benefit of leasing? Also to consider is storage. If you buy or lease you'll have to pay for parking space, either outdoor, or in a hangar.