Airplane Math: When Do Upgrades Make Economic Sense?

The calculus often comes down to avoiding becoming upside down, but not at the expense of enjoying your perfect airplane.

Jason McDowell

Wednesday, September 27, 2023 at 11:59 AM ET

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Most owners never recoup their investment in major upgrades such as a new instrument panel or a more powerful engine. But it’s important to consider the long-term benefits that might not show up on a spreadsheet. [Credit: Jason McDowell]

Key Takeaways:

Aircraft owners often hesitate to make significant upgrades due to concerns that they won't recoup the investment upon resale.
The article advises against focusing solely on the resale value of upgrades, especially for owners planning long-term retention of their aircraft.
Instead, consider the long-term enjoyment, enhanced safety, and utility of a "perfect" airplane, viewing the unrecouped upgrade cost as a small monthly expense over many years, potentially offset by the aircraft's overall appreciation.

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Readers contact me pretty regularly for advice regarding airplane shopping, purchasing, and maintenance. I can only assume they’re inspired by the notion that an individual lacking flying skills, business acumen, and finances can successfully navigate aircraft ownership. I’ll admit I myself am often amused that I’ve made it this far.

It’s enjoyable to help, though. Whether it’s a new pilot exploring ownership for the first time or a seasoned expert weighing upgrade options, I find it rewarding to help others avoid some of the hard lessons with which I’ve had to contend thus far on my own journey.