For many pilots, owning an aircraft feels like the ultimate goal. Just look at me in that photo above, grinning as I stand next to my aircraft.
Is buying the best thing for a pilot to do, or does that grin hide the tears I’m shedding internally at how much money this thing really costs me?
The reality is that aircraft ownership can also involve substantial fixed costs, unexpected maintenance and a large amount of money tied up in an asset that may spend most of its life parked on the ground.
Renting avoids many of those risks, but it comes with compromises of its own. Availability may be limited, overnight trips can be difficult and the hourly rate can begin to feel painful when you fly regularly.
So, should you buy or rent an aircraft?
The mistake most pilots make
A common theory is something like:
“The more I fly the better off I am to buy an aircraft rather than rent one.”
Unfortunately, that’s not always true.
The rental rate you pay when hiring an aircraft normally includes many of the costs that an owner pays separately: insurance, maintenance, inspections, hangarage or parking, engine reserves, registration and depreciation. Some of those costs are obvious. Others arrive quietly throughout the year (or very loudly when the aircraft enters the maintenance hangar).
To compare renting and buying properly, you need to compare the total cost of each option over the same period.
That means looking beyond the hourly rate and considering what your flying will realistically look like over several years.
The case for renting
Renting is often dismissed as money that is “gone forever”. That is true in the narrow sense that you are not acquiring an asset, but it ignores what the rental payment buys you.
Lower financial commitment
Renting does not require you to place a large amount of capital into an aircraft or take on an aircraft loan. Your money remains available for other purposes, and you are not exposed to changes in the aircraft’s resale value.
Fewer surprise costs
If a rented aircraft requires a major engine repair, that is the owner’s problem and not yours! Your hourly rate may feel high, but at least it’s predictable.
Owners must be prepared for maintenance bills that do not fit neatly into an hourly calculation. A defect found during an annual inspection can change the economics of an entire year. Like when I discovered the fuel senders on EYZ needed replacing and only $10,000+ later was I then able to fly the aircraft again.
Flexibility
Renting allows you to choose an aircraft that suits each flight. You might use a PA28 for local flying, a Cirrus SR22 for a longer trip, or a Turbo aircraft when flying over higher ground.
It can make sense for lower utilisation
An owner incurs many fixed costs whether the aircraft flies 20 hours or 200 hours each year. When you rent, you generally pay only when you fly, apart from any club or membership fees.
For pilots flying relatively few hours, avoiding those fixed ownership costs can make renting substantially cheaper.
You can have breaks in flying and it doesn’t cost you
As an aircraft owner who had to stop flying for two years due to a medical grounding I can confirm there are plenty of aircraft costs that keep hitting your account even if you’re at home sitting on your couch. If I was just renting I wouldn’t have owed anyone a penny throughout that entire period.
The disadvantages of renting
Availability
The aircraft you want may already be booked, particularly on weekends or during good weather. A maintenance issue can also remove it from service with little notice.
For local flights, that may be an inconvenience. For a planned multi-day trip, it can make renting impractical.
Restrictions
Rental operators may impose daily minimum hours, prohibit overnight trips or limit where the aircraft can be taken. They may also require regular check flights or recency requirements beyond those imposed by the regulator.
Less familiarity
Even aircraft of the same model can have different avionics, equipment and operating quirks. Regularly moving between rental aircraft may mean spending more time becoming familiar with each one.
The hourly rate can become expensive
As your annual flying increases, the rental cost grows almost directly with every additional hour. At some point, the fixed costs of ownership are being spread across enough hours that buying may become more competitive.
There is no universal number of hours at which this happens. It depends on the aircraft, its purchase price, local rental rates, and a whole bunch of other factors including all the ownership costs you will face.
The advantages of buying
Aircraft ownership is not purely a financial decision. If it were, many privately owned aircraft probably would not exist.
The real value often comes from access, control and the type of flying ownership makes possible.
The aircraft is available when you need it
For many owners, this is the strongest argument.
You can decide to fly when the weather suits, leave the aircraft away overnight and plan longer trips without working around someone else’s booking calendar.
That flexibility may also mean you fly more often, remain more proficient and use an aircraft for trips that would never work under a conventional rental arrangement.
Familiarity and consistency
You know the aircraft’s history, equipment and condition. The cockpit is configured consistently, your equipment can remain on board and you can invest in avionics or upgrades that suit the flying you actually do.
That familiarity has practical value even if it is difficult to represent on a spreadsheet.
Greater control
As the owner, you make decisions about maintenance, improvements and how the aircraft is operated. You are not waiting for a flying school or rental company to approve a trip or repair a minor defect.
Of course, control also means responsibility. Every maintenance decision and associated bill ultimately belongs to you.
The aircraft retains some value
Unlike rental payments, buying leaves you with an asset that can later be sold.
This does not mean ownership costs only the difference between purchase and sale price. You still need to account for purchase expenses, upgrades, finance, annual costs, operating costs and the cost of eventually selling the aircraft.
However, the expected resale value is an important part of any fair comparison. An aircraft that holds its value well produces a very different result from one that depreciates heavily.
You can rent it out
In certain circumstances and if insurance allows you can also generate income from your aircraft asset by renting it out. Whilst this may be appealing from a profit and loss perspective it does introduce a number of other considerations including a) how do you feel about other people flying your aircraft, b) what happens if it gets damaged, and c) it’s still going to incur the same ongoing maintenance costs regardless of who is flying it, and those costs are charged to you (but of course you can recover some of that in the rental fees).
The costs owners need to consider
The purchase price is only the beginning. A realistic ownership calculation should consider at least the following:
- Pre-purchase inspection, legal, registration and delivery costs
- Immediate repairs or upgrades
- Finance establishment fees and interest, if applicable
- Insurance
- Hangarage or parking
- Annual inspections and scheduled maintenance
- Unscheduled maintenance
- Navigation database subscriptions and other software
- Registration and administration costs
- Landing, handling and navigation fees
- The aircraft’s expected resale value
- The cost of selling the aircraft
- The return you could otherwise earn on the money invested
Some of these costs are fixed. Others depend on how much you fly. Some can be estimated reasonably well, while others are really a bit of a guess until after you’ve been charged.
When buying may make sense
Buying is more likely to suit you when:
- You expect to fly regularly over a period of at least a few years
- Aircraft availability is important to you
- You want to do overnight or multi-day trips
- One aircraft can comfortable achieve the majority of your mission objectives
- You value familiarity and control
- You are willing to manage the administrative side of ownership
When renting may make sense
Renting is more likely to suit you when:
- You fly relatively few hours and your flying is inconsistent
- You are still learning what type of aircraft suits your mission
- You want access to several aircraft types
- You prefer predictable costs
- You do not want responsibility for maintenance and administration
- Suitable rental aircraft are readily available
Renting can also be the sensible choice during a transition. A new pilot may be better served by renting for a year, learning how they actually use an aircraft and then buying with a much clearer understanding of their requirements.
There is also a middle ground
The decision is not always limited to sole ownership or renting.
A syndicate or partnership can spread fixed costs across several owners while offering more access and control than conventional renting. It can be an excellent compromise, although it introduces questions about scheduling, maintenance decisions, insurance and how the aircraft will eventually be sold.
Flying clubs can offer another middle ground, particularly where members have reasonable access and can take aircraft away for longer trips.
These arrangements deserve the same careful analysis as sole ownership. A lower entry price does not automatically make them good value, but they can change the numbers.
Start with the mission, not the aircraft
Ask yourself:
- How many hours will I realistically fly each year?
- How often will I need the aircraft overnight?
- How many people and how much baggage will I usually carry?
- What range and performance do I actually need?
- Is a suitable aircraft available to rent locally?
- How long do I expect to keep an aircraft?
- How much financial uncertainty can I comfortably accept?
- What value do I place on availability, familiarity and control?
Once you understand the mission, you can compare realistic ownership and rental options rather than comparing an idealised purchase with a rental arrangement you would never actually use.
So, should you buy or rent?
Nope. I’m not going to fall for that one. And by now you should know the answer – there is no answer that applies to every pilot (sorry)!
Renting often wins on flexibility, predictable costs and lower financial risk. Buying can win on availability, control and the ability to use an aircraft in ways that rental operators may not allow.
Financially, the result depends on the aircraft, how much you fly, how long you keep it, the local rental market and what eventually happens to its value. Personally, it depends on how much ownership changes the kind of flying you can do.
This article provides general information only and does not constitute financial advice. Aircraft costs vary significantly between locations, operators and individual aircraft. Obtain relevant professional advice and independent quotes before making a purchase decision.