sample numbers

[Steve Gordon]

I was running with a 10% down payment, an 8% interest rate, and 12 members.
Also the Hawk XP runs about 10gph and the Cardinal runs about 11gph
(conservative estimate based on multiple results of a Google search).  I can
re-run the numbers with a 20% down payment and a 7.1% interest rate, but I
would recommend sticking with 12 members and these fuel consumption
estimates.  I'd rather be in a situation where we know we have 15 members
who would be willing to pay 12 member rates rather than having only 12
members who would be willing to pay 15 member rates.  Finding that "sweet
spot" is easier if we estimate costs a little high and membership a little
low.

 

I was accounting for bootstrapping the overhaul fund.  If the plane has, for
example, 1,000 SMOH, then we need to set aside $10,000 towards the engine
overhaul.  I factored that money as part of the one-time payment.  We could
also work that into the monthly dues which would make the dues higher until
after the first overhaul.

 

Another consideration is that insurance will likely go up as the value of
the plane goes up.  We agreed that insurance on a 172 is $4,500, so I took a
guess and figured that insurance on the Hawk XP would be about $5,000, and
insurance on the cardinal would be about $5,500.  I realize I have no solid
basis for these numbers, but thought it better to estimate rather than
assume the same insurance premium on a Cardinal that we'd have on a 172.

 

I also made a leap and assumed that we would want to hangar the Cardinal.
It would be a shame to leave such a beautifully restored and freshly painted
aircraft out in the elements.  I assumed $350/month for a hangar, and that
may even be on the low side.

 

The one-time cost is a hard number to nail down because it depends very much
on the particular aircraft we choose.  It just happens that given the
particular aircraft chosen as samples, the 172 has a higher one-time cost
than the Cardinal.  Since these are not necessarily the actual aircraft we
will pursue, I thought we should give a range as we will not know the actual
cost until we settle on something. 

 

I've attached a spreadsheet with the numbers used to calculate the cost
structures I used. 

 

Thanks,

 

-Steve

 

From: eefc-core-bounces at workingcode.com
[mailto:eefc-core-bounces at workingcode.com] On Behalf Of Bob Irving
Sent: Saturday, April 11, 2009 10:55 AM
To: eefc-core at workingcode.com
Subject: sample numbers

 

At 20% down payment, 7.1% interest rate, and 15 members I come up with the
following numbers. What am i missing?

 

40,000 = 600 initial/75 per month/65 per hour

50,000 = 700 initial/80 per month/65 per hour

60,000= 800 initial/85 per month/65 per hour

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