Question For Experienced LSA Owners

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[dstclair]

I'd guess $45K in 2014 $$$.

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[drseti]

Just a guess, of course, but I'd depreciate the engine $10 per flight hour (assuming 2000 hour TBO and $20,000 for a new engine), and figure $2000 per year for airframe depreciation (assumes $100k new, 50 year lifetime). So, for ten years and 600 hours, knock off ($20,000 + $6,000) = $26,000. If you pay $75,000, that takes you down to $49,000 (neglecting inflation rates).

Not too far off Dave's estimate, actually.

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[FastEddieB]

I realize it could be zero to $100,000 or more...

Just posted to the CT forum:

Well, it could be anywhere from zero to $100,000 - or even more!

Does that help?

Seriously, don't let this be a case of letting the perfect be the enemy of the good - if you want a plane, buy a plane and things will sort out - life is too short to postpone things waiting for the perfect moment.

If you choose a plane that gets orphaned or falls victim to major "AD's" (or equivalent), its value could fall precipitously.

OTOH, if you choose a popular model and new plane prices continue their upward spiral, its not inconceivable to sell a plane bought used for more than you paid for it down the road. I sold my 1976 Tiger, bought in 1992, for roughly double the purchase price in 2003. $32k to $64k in 11 years. It had improvements, including an expensive new panel, but had I been making calculations like yours in 1992 they would have been way, way off.

It will be especially hard to figure if you choose an "unpopular" plane like my Sky Arrow. With less than 30 or so S-LSA versions sold, it's a very "thin" market. But with new ones selling for $100k, a well maintained earlier model might sell for not much below its new price ($75.5k), assuming an eager buyer really wants one. Or not - its hard to tell.

My advice now is pretty much what its been all along - don't do anything rash, but don't overanalyze things until you're paralyzed and end up not ever buying a damn plane. Most here have a finite number of flying days left it our coffers, and each day you delay is one less day enjoying the satisfaction of plane ownership.

Just my .02 - YMMV!

[Nomore767]

Does a leaseback option make any sense?

At the flight school the CFI mentioned being interested if I were to buy an RV12 SLSA and lease it back to his school.

Out of the $100 per hour they charge I would get $90 but would be responsible for all maintenance. I think he said they figured on 200 hours per year.
If I wanted to take the airplane at any time for any length of time I could bump the schedule. Of course, doing this to often wouldn't be very popular, but it does give you the scheduling flexibility of owning outright.

There is always the issue of student pilots and someone else flying your plane but if the plane is used and you're more focussed on the cost of acquisition and ownership does leaseback make any sense?

[drseti]

Howard, we've had other threads here on leaseback (use the search function to find them). Generally, a leaseback only makes financial sense if you have high enough earned income to be in a high tax bracket, seeking a depreciation write-off to help you offset other income. It can be a good tax shelter if you pay taxes, but makes very little financial sense for a retired person with low taxable income. So, be sure to run the idea past a good CPA.

Your FBO's commission is generous (the customary split is 80/20, not 90/10). The other common arrangement is an 80/20 split in the other direction, with the FBO covering all operating costs (maintenance, insurance, hangar, etc.). This usually works out better for the owner. And be sure to have someone knowledgeable look over the leaseback contract very closely (here's where an AOPa pilot Protection Services membership can pay for itself).

Here's a link to a sample leaseback agreement for your edification:
http://avsport.org/docs/AIRCRAFT%20LEAS ... EEMENT.pdf

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