easyski
Well-Known Member
- Joined
- Apr 11, 2016
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Not sure if this is the right sub-forum but here is the situation
Purchased a 1999 saratoga II TC in 2016 with another person (best friend) for 217k with 1600 hours on the engine (the airplane is only in my name and the loan is only in my name if that matters)
Prior to purchase, it was intended to be a 50/50 split AND there was an understanding that we would likely need to purchase a new engine in the next 1 -2 years, the understanding in 2016 was that this would cost us roughly 70k total and we were ok with this and we came to agreements that insurance, maintenance etc would be 50/50.
For the first 3-4 years, I definitely used the airplane more but it was close to equal. Over the last 2 years I have definitely used the plane much more, I'd say along the lines of 80/20.
Luckily, we have not yet had to replace the engine, it currently has 2300 hours on it (and hoping to do it in the fall/winter this year, cylinders have been on order since 11/2021 with no arrival date in sight). The engine money has not been paid by either party yet (however I do have the full amount to pay for it myself which is now around 80-90k all said and done.)
Over the last 3-4 years, estimates for repairs, maintenance, insurance etc were not accurately estimated. The other owner knew I was putting in more money and we did things such as JPI, some new avionics, TKS panels etc etc (which i paid for 100%). Basically over the entire time of owning the airplane, I have put in around 200k and he has put in around 67k (making it basically a 75%/25% situation).
Currently the equity in the airplane is around 64k (still owe on the loan).
Here is where the situation gets tricky for me. I think it is hard to value this airplane, especially in today's market. I want to make it fair for him but also for myself. Obviously it would have been great to only have had to pay half of the new engine but at this point I know I will have to pay for the entire thing. I am struggling with that a little bit in that we had agreed that we would likely have to both put down around 35k in the first year or two so I feel as though there should be a concession on his part for that.
I wanted to pick some brains here on what you might consider fair if you were on my side or his side of the situation.
TIA
Purchased a 1999 saratoga II TC in 2016 with another person (best friend) for 217k with 1600 hours on the engine (the airplane is only in my name and the loan is only in my name if that matters)
Prior to purchase, it was intended to be a 50/50 split AND there was an understanding that we would likely need to purchase a new engine in the next 1 -2 years, the understanding in 2016 was that this would cost us roughly 70k total and we were ok with this and we came to agreements that insurance, maintenance etc would be 50/50.
For the first 3-4 years, I definitely used the airplane more but it was close to equal. Over the last 2 years I have definitely used the plane much more, I'd say along the lines of 80/20.
Luckily, we have not yet had to replace the engine, it currently has 2300 hours on it (and hoping to do it in the fall/winter this year, cylinders have been on order since 11/2021 with no arrival date in sight). The engine money has not been paid by either party yet (however I do have the full amount to pay for it myself which is now around 80-90k all said and done.)
Over the last 3-4 years, estimates for repairs, maintenance, insurance etc were not accurately estimated. The other owner knew I was putting in more money and we did things such as JPI, some new avionics, TKS panels etc etc (which i paid for 100%). Basically over the entire time of owning the airplane, I have put in around 200k and he has put in around 67k (making it basically a 75%/25% situation).
Currently the equity in the airplane is around 64k (still owe on the loan).
Here is where the situation gets tricky for me. I think it is hard to value this airplane, especially in today's market. I want to make it fair for him but also for myself. Obviously it would have been great to only have had to pay half of the new engine but at this point I know I will have to pay for the entire thing. I am struggling with that a little bit in that we had agreed that we would likely have to both put down around 35k in the first year or two so I feel as though there should be a concession on his part for that.
I wanted to pick some brains here on what you might consider fair if you were on my side or his side of the situation.
TIA
