From: enns@waterloo.hp.com (Roger Enns)
Subject: Re: Cost of owning
Date: Fri, 9 Oct 1992 14:29:31 GMT
Organization: HP Panacom Div Waterloo ON Canada
X-Newsreader: TIN [version 1.1.4 PL6]

Archie Cobbs (archie@cory.Berkeley.EDU) wrote:
: There has been a thread in rec.aviation.owner talking about the costs
: of ownership of an airplane .. you know, the usual stuff: fixed costs
: (annual, insurance, etc) plus hourly costs (fuel, maintenance reserve,
: etc.).
: 
: So my question is: how do the costs of owning a homebuilt differ from
: the costs of owning a production plane?
: 
Operating costs of a homebuilt can be compared to certified
aircraft in the following manner:

Fuel useage - same as comparable powered certified aircraft
	    - sure, a fast homebuilt will get you to your
	    destination quicker, but 95% of the time, people fly
	    local flights anyway, so the point is moot!

100hr/annual inspection - substantial savings possible, as the
	     builder is allowed to sign off inspections, and
	     perform all maintainance him/herself.
	     - parts costs will be similar to certified aircraft
	     with regards to filters, nuts+bolts, engine parts,
	     etc.

Storage - same or more as a certified aircraft
	- many builders would see nothing wrong with a tie-down
	for their Cessna, but after finishing building their
	pride and joy, a hangar is suddenly deemed necessary to
	avoid damage and wear and tear from the elements.
	- also, if the aircraft is built or modified at an
	airport, a hangar is almost always required to provide
	shelter, power, and light.            
        
        - could be less, if a smaller plane is built, which can
	be stored in a hangar together with another person, and
	splitting rent.

Insurance - I have never owned a certified aircraft, so I can't
        compare here, but I know that I pay $60/yr for third
	party liability, and also an optional $190/yr for
	passenger liability.  If you always fly alone, or build a
	single seater, insurance can be as low as a measly $60
	per year!  I honestly expected to pay much more, but I'm
	not complaining :-)

: For example, maintenance should be lower, since you can do more stuff
: yourself.  But insurance may be higher...(?)  Who knows some specifics?
: Also, how do homebuilts stand in the eyes of the accountant?  It's nice
: to know that if you buy a 1970 Cessna, you can sell it later for around
: the same price.  What about a decently put together Glasair II?
 
Homebuilt resale value varies tremendously on the design.  It is
rare to even break even on the project, unless you pick a very
popular design, or are very fortunate in being able to locate the
required components at cheap prices.  Some homebuilders elect to
part out their aircraft rather than selling it as a whole.
Sometimes they actually get more money this way, but usually it
is to avoid any liability issues later on in during the
aircraft's use.  (What happens if the buyer later is injured/killed
in your aircraft?).

: BTW, I don't intend to deemphasize the generally agreed upon principle
: that one should buy a kitplane primarily because one wants to build
: a plane, not just because one wants to own that plane, or that financial
: concerns are primary... just investigating various aspects of the idea.
: 
: -Archie

If anyone else has info to add to above, post away.  The above
answers are my impressions only, and if I am out of line anywher,
set me straight!

I saw a posting on rec.av a while back about the annual
inspection cost for a Flybaby being about $12.00!  Now that's
economical flying!

--
Roger Enns (enns@waterloo.hp.com) Panacom Automation Division, HP
C-GIIV Dragonfly, 1979 RX7 13B, 1985 Colt