How do you guys afford a brand new SLSA?

[N918KT]

I am wondering for some of you guys who can afford a brand new SLSA on the market today, how were you able to afford it? Stocks, mutual trust funds, loans? It seems for the most part, SLSAs are out of the reach of most average pilots.

With all of the glass in the LSAs out there, how do those guys are able to purchase an SLSA with all of options possible?

For me, I still prefer a low-wing SLSA with dual stick controls with a 6-pack analog gauges instead of all that glass. The only glass I would want is probably a portable VFR GPS.

[MovingOn]

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[drseti]

Stocks, mutual trust funds, loans?

No, mostly jobs, hard work, careful budgeting, and diligent saving. Nothing falls into your lap; you have to make it happen.

[MovingOn]

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[MrMorden]

Also, patience. I have wanted to buy a Flight Design CTSW since 2006; it didn't happen until 2013. It took me that long to set everything up so I could do it, and really afford it. I *hate* debt.

And why do you need a *new* SLSA? There are people out there with the means for that, but they are not the norm. I got a used, low time airplane, and paid about half the new price for it. It looks new in almost every respect, and the airplane doesn't know it shouldn't fly like a new one. If I take care of it, it will last as well as a brand new airplane. One of the ways rich people get and stay rich is to maximize return on investment. Unless you are running a flight school or other business, a new airplane makes terrible financial sense. It's a lot like a new car; it loses a LOT of value of being "new" the first time you drive/fly it. Let somebody else take that hit.

[dstclair]

With all of the glass in the LSAs out there, how do those guys are able to purchase an SLSA with all of options possible?

Glass has very little to do with the cost of a new LSA.

A standard, true gyro-based six-pack would run around $9K today which no one would voluntarily do. An electric 6-pack would run around $6K. Go to your favorite avionics shop to verify. A single 10" Garmin G3x touchscreen system runs around $4500 including an EMS, GPS and backup battery. Not to mention the weight savings.

Adding the second screen in where the costs start to exceed the analog configuration but its a trivial difference as compared to the rest of the cost of the plane.

[N918KT]

With all of the glass in the LSAs out there, how do those guys are able to purchase an SLSA with all of options possible?

Glass has very little to do with the cost of a new LSA.

A standard, true gyro-based six-pack would run around $9K today which no one would voluntarily do. An electric 6-pack would run around $6K. Go to your favorite avionics shop to verify. A single 10" Garmin G3x touchscreen system runs around $4500 including an EMS, GPS and backup battery. Not to mention the weight savings.

Adding the second screen in where the costs start to exceed the analog configuration but its a trivial difference as compared to the rest of the cost of the plane.

Thanks for the replies everyone. No, I do not plan to buy a brand new SLSA. I was wondering how some people were able to afford $150,000 SLSAs with all the options you could possibly have on the plane, but I guess you explained it to me.

Dstclair, I remember my CFI (Art) telling me that glass instruments are both lighter weight and cheaper than analog gauges. At first I did not agree with the cheaper part, but this was the second time I heard glass is cheaper than analog gauges. Why is that? I always thought glass is more expensive than analog gauges.

[drseti]

glass is cheaper than analog gauges. Why is that?

Simple. Mechanical systems have not changed appreciably since the time of Pearl Harbor. Because of the solid state and computer revolutions, OTOH, electronic equipment keeps getting smaller, lighter, cheaper, more capable, and more reliable every year.

Look up "Moore's Law" on Wikipedia for a more complete discussion.

[N918KT]

glass is cheaper than analog gauges. Why is that?

Simple. Mechanical systems have not changed appreciably since the time of Pearl Harbor. Because of the solid state and computer revolutions, OTOH, electronic equipment keeps getting smaller, lighter, cheaper, more capable, and more reliable every year.

Look up "Moore's Law" on Wikipedia for a more complete discussion.

Just looked it up, and I think based on what I read and what you told me, is does Moore's Law have an inverse relationship with relationship to better technology and costs? In other words, does Moore's Law says that as computers and technology become more advanced, the costs will go down?

[Flocker]

how were you able to afford it? Stocks, mutual trust funds, loans?

For me, Real Estate investments.

[drseti]

does Moore's Law says that as computers and technology become more advanced, the costs will go down?

There are two possibilities: as technology advances, prices can stay constant as performance improves (e.g., personal computers), or performance can stay constant as prices decrease (e.g., cellphones). Which of these occurs is a function of such economic factors as market penetration, consumer demand, and economies of scale.

[designrs]

One of the major problems in buying an aircraft today Kevin is lack of financing. It's basically "get your cash someplace else". Financing an aircraft is harder than financing a home. I could go out and finance a $150k Porsche in 20 minutes with just a few thousand down, but I can't finance a $150k airplane with $30k down. Many qualified buyers are being turned away and can't get financing. This is a big problem for the aviation industry and LSA especially.

[designrs]

Contrary to popular belief, money doesn't often come from traditional "investments"... interest rates are pitiful, the stock market climate is horrible, even good real estate isn't appreciating. It appears the only people that make money on traditional "investments" are the financial institutions that take your money. Saving and scrimping for 40+ years on a every-day job doesn't look like such a great prospect either.

Want to make money? Become a producer. Run your own business. Work your ass off until it shows a profit and then multiply it. Become a producer more than a consumer.

Need motivation:
http://boldanddetermined.com

(I have no affiliation with the above website except for being an interested reader. Granted this site is a bit rough, but it is good for motivation. I wish that I had read such a resource when I was 18 years old!)

[FastEddieB]

Contrary to popular belief, money doesn't often come from traditional "investments"... interest rates are pitiful, the stock market climate is horrible, even good real estate isn't appreciating. It appears the only people that make money on traditional "investments" are the financial institutions that take your money.

Don't have time for a long post, but let me say I could not disagree more, at least regarding traditional investments.

That "horrible" stock market climate went from a Dow in the 6,000's to a Dow in the 14,000's. I have friends that panicked and got out near the bottom and took losses and missed the recovery plus some. Quality utility stocks (some of which I've owned for more than 30 years) continue to pay 3% to 5% or so in dividends. I have select stocks in other areas that have done quite well - Apple, Google and the like.

Not for everyone, and maybe I've just been lucky, but it has worked nicely for me.

[Nomore767]

You can do even better with index funds like the Vanguard total stock market, and total bond market funds and take advantage of the entire market rather than trying to pick the future performers.

I too agree, for me the 'poor, underperforming' has done well with solid reruns over the long term.

Disclaimer: there is probably no economic resin to put money into airplanes etc…but we do it for fun!