A personal airplane can represent a sense of independence providing owners the freedom to go wherever they want, whenever they want. Owning a small plane includes expenses ranging from the initial sale price and down payment to repairs, storage fees, insurance, and fuel costs.
Key Takeaways
- The type of plane purchase radically affects the price point.
- When financing an aircraft, buyers must budget for monthly payments.
- Buyers should consider storage, insurance, and fuel costs.
- The Aircraft Owners and Pilots Association maintains a list of flying clubs throughout the United States.
Types and Costs
- Ultralight Aircrafts: Single-seat, single-engine recreational planes. These may be purchased for an up-front cost of $8,000 to $15,000.
- Single-Engine Planes: These planes, which hold two or more people and are more economical to operate and maintain than multi-engine planes, typically cost between $15,000 and $100,000.
- Multi-engine Planes: This type costs between $75,000 and $300,000.
The Aircraft Owners and Pilots Association maintains a list of flying clubs throughout the United States.
Financing and Storage
Most buyers will require a loan for a small plane purchase and should budget for interest payments. Like financing a car, several items must be considered:
- Down payment
- Credit score
- Amount of the loan
- Usage and purpose of the plane
- Condition of the aircraft, including the year, make, and model
Airplanes must be stored at an airport, in hangars, or outdoors. Outside storage is typically cheaper than hangars and other covered spaces, although this depends on the region and location of the airport. Urban airports charge more than rural airports. The average hangar cost is $250 monthly, plus $100 for tiedown gear. Residential storage is rarely available to the average small plane owner.
Financing companies consider the same factors lenders do for car loans, including down payment and credit score.
Maintenance and Inspections
The Aircraft Owners and Pilots Association (AOPA) recommends establishing an escrow fund for maintenance to pay for engine, propeller, avionics, and airframe overhauls. Small aircraft are required to undergo annual inspections, which range in price from $600 to $1,200, while specialized planes with retractable landing gear cost more.
Small aircraft should have oil changes every four months or 50 hours, whichever comes first. For the average user, this represents three oil changes per year. The average small plane fuel burn rate is five-to-10 gallons per hour.
Insurance
Aviation insurance covers aircraft damage and provides liability. Coverage varies by policy, and aircraft damage is categorized as in-flight or external damage. As with any vehicular insurance, the cost will vary based on the type of aircraft, what level of coverage is desired, and the experience of the operator.
Small aircraft insurance can range between $500 to several thousand dollars per year and can be purchased through a licensed aviation insurance agent.
Private Ownership vs. Fractional Ownership
Fractional ownership is when two or more people buy shares in an aircraft, with a set amount of hours allocated to each shareholder depending on their investment. Buyers may also be able to purchase multiple shares to increase their flying time.
What Is the Average Annual Cost to Own an Airplane?
The average annual cost to own an airplane is $30,000.
Can Buyers Upgrade a Small Plane After Purchase?
Buyers may purchase a new small plane or upgrade an existing aircraft. Several companies provide aftermarket upgrades. Several aviation companies provide upgrades that may include new flight decks, specific co*ckpit and avionics upgrades, or air-to-ground capability of Wi-Fi and satellite upgrades.
Where Can Individuals Rent a Small Plane?
Most air clubs have a fleet where airplanes can be rented hourly. The Aircraft Owners and Pilots Association maintains a list of flying clubs throughout the United States.
Where Can Individuals Take Flying Safety Lessons?
The AOPA Air Safety Institute provides various programs for the flying community.
The Bottom Line
Many costs factor into the economics of small aircraft ownership. The type of plane affects the price point, and buyers must budget for monthly payments when financing. Storage, insurance, and fuel costs add to the average annual cost of $30,000.
