Airplane for interstate flying

Can any one these planes be financed for $10,000/month? Thats his budget not including gas. I knkow a PC-12 goes for 3-4 million, so thats probably out of the questions as it would cost around $20,000/month or more. My buddies new cessna 172 was 220K and cost him 1,800/month. Thats roughly 1 million dollars for $10,000 payment.

Used 2005-08 Cessna 400's are running about $500,000. Only problem is no family trips in it.
 
That's to purchase outright. Your friend ought to look into whether he would be better off leasing or getting into fractional ownership.
 
mrivc211 said:
Can any one these planes be financed for $10,000/month? Thats his budget not including gas.
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Is his acquistion budget $10,000 a month or is his overall budget $10,000 a month? I know that you know this but there are a bunch of costs associated with owning a "big" airplane like a King Air or PC12 that your friend may or may not have thought about. Training, insurance, and storage alone on a turboprop is going to eat a sizeable amount of that budget if it's $10,000 a month total budget.
 
mrivc211 said:
Can any one these planes be financed for $10,000/month? Thats his budget not including gas. I knkow a PC-12 goes for 3-4 million, so thats probably out of the questions as it would cost around $20,000/month or more. My buddies new cessna 172 was 220K and cost him 1,800/month. Thats roughly 1 million dollars for $10,000 payment.

Used 2005-08 Cessna 400's are running about $500,000. Only problem is no family trips in it.
Click to expand...

If his overall budget before gas is 10k a month he will need a piston. Hangar on a turbine will run about $1000-3000 a month depending on location. Inspections on a King Air will run you $20,000 a year if nothing is wrong and you are only flying 200 hours a year. Any problem and that figure goes way up. The insurance on a King Air with a million hull and liability will be about $16,000 for an average time pilot. If he uses it for business a lot he will probally want more liability and that figure will go up. A pilot will cost him $50,000 a year (and that is a low number for turbine pilot) and that is not including the $7,000 a year recurrent or the hotel and food bills he will have on the road. The bills add up, quick. So far this year we have spent about $3600 on landing fees alone (thank you signature!). And your guy has not even made his first payment on the plane yet!

It sounds like he would be a lot better off buying a Cessna 340 and chartering for the family trips.

Alex.
 
I don't know much about airplane financing, but here's food for thought:

A 10 year note at 7.5% would look something like this:

Amt Financed / Monthly Payment
$850,000 / $10,000
$750,000 / $8,800
$500,000 / $5,900

This is financing only. As mentioned above, there are MANY other expenses associated with owning/operating an aircraft (especially a pressurized cabin-sized aircraft).

I suspect there are certain tax advantages to owning an aircraft for business. (ie depreciation and interest expenses may offset taxable income) This might help the expense of ownership be a little more attractive, but either way he's probably stuck with a piston at the $10,000/month level. (And really, it doesn't sound like that's a problem with the type of flying mentioned.)
 
Sounds to me like his purchase price is around $500,000. That would leave around $4,000/month for parking, insurance, mx reserve, annual inspections etc.
Are there any companies out there that have shares in these types of planes. It also seems to me that going in half would also be better.
 
Also depends on his down payment for the airplane. If he's putting 10-15% down that's certainly going to reduce the amount he's servicing that note every month.
 
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