Preparing for Unexpected, Inevitable Aircraft Maintenance Bills

The replies that floated to the top of the thread were, in my opinion, pretty misinformed.

They professed that one has no business purchasing an airplane unless they have enough money in the bank to purchase a brand-new engine or pay for a full engine overhaul at the drop of a hat in the event it suddenly decides to destroy itself. For most types commonly chosen as a first airplane, this equates to $30,000-$40,000 for a complete overhaul. A factory-new Continental O-200, as found on the trusty Cessna 150, lists for $47,000—easily more than many complete, airworthy 150s.

For most private pilots who are not independently wealthy, amassing this level of emergency maintenance savings, above and beyond that required to purchase the airplane itself, would make ownership a nonstarter. But certainly, some level of savings in an emergency fund is warranted.

The question is, how much?

Admittedly, my time as an owner has been short, but from a maintenance perspective, it has certainly been eventful. Since purchasing my airplane in 2021, I’ve had to unexpectedly replace all of my cylinders and pay for a top overhaul. One particularly nasty annual inspection ended up costing nearly $8,000. Based on my experience, I advise new and prospective owners to have enough money set aside to cover the biggest potential maintenance expenses, excluding the biggest items, such as a full engine overhaul or complete fabric replacement.

For the types most commonly chosen as first airplanes, this amounts to roughly $10,000-$15,000. With that in the bank, you’ll be able to absorb just about anything short of those items that fall into the “most critical” category. You could cover an unexpected top overhaul, wing fabric replacement, targeted structural repair, etc. In my opinion, that’s the amount that delivers the peace of mind you’d get through the vast majority of unexpected repairs and be able to continue flying.

Of course, this begs the question: What would you do in the worst-case scenario if your engine suddenly needed a complete overhaul? Whether a prop strike occurs or the engine simply decides to destroy itself, it does happen, and when it does, it’s often despite the owner’s best efforts to minimize the risk. 

The main point to understand, and the point that was missed in that online discussion, is that there are alternatives to a brand-new engine or full overhaul. Are the alternatives less than ideal? Absolutely. But, as the owners and operators of sub-$300,000 airplanes, we know that our world is inherently less than ideal and is a study in the art of carefully considered compromises.

Plenty of major engine issues can be resolved with targeted engine work that is less thorough—and less expensive—than a full overhaul. In my case, since my top overhaul is relatively recent, a severe issue will most likely be limited to the bottom end, such as a crank or main bearing problem.

Last year at Experimental Aircraft Association's (EAA) AirVenture, I asked a representative from Poplar Grove Airmotive, a well-respected engine shop in northern Illinois, what I could expect if I encountered such an issue but wanted to avoid a major overhaul. They informed me that many of the most common scenarios could likely be resolved at half the cost of a full overhaul—roughly $15,000-$20,000. 

A “bottom overhaul” like this would, of course, not affect the time since major overhaul (SMOH) of the engine. Even if the total work done over a few years collectively equaled a full overhaul, you wouldn’t be able to present the engine as having zero SMOH. However, you’d be flying again for a fraction of the cost.

Another alternative that the internet forum naysayers never seem to remember is that used engines exist. Not only do they exist, but they can provide decades of reliable service for a fraction of the cost of a factory-new engine. Anecdotally, I can report that midtime examples of my airplane’s engine—the Continental C-145/O-300—can be found for around $10,000-$15,000. 

In most cases, these engines have been removed as owners upgrade to more powerful ones. You’d certainly want a thorough inspection performed, but that’s no different from the attention you’d give an engine during an aircraft’s pre-purchase inspection (PPI). Ultimately, you could end up with a new-to-you engine for less than half the cost of a complete overhaul—and you will likely be able to further offset the cost by selling your old, problematic engine as a core.

A third alternative is to consider taking on a partner and co-owning your airplane. Depending on the aircraft type, a 50 percent buy-in could easily pay for a full overhaul or even a factory-new engine. Your future maintenance costs would instantly be slashed in half, and your airplane would fly more often and regularly. This could also be attractive to potential partners, as the new partner would be buying the peace of mind that comes with a fresh engine.

Most importantly, however, none of these three options requires a prospective owner to delay the purchase of their first aircraft until they can save over half the value of the airplane itself for their emergency fund. Sure, it would be prudent to dedicate some time and effort to building a more modest fund. But for those on the precipice of ownership, don’t let your progress be stunted by a strive for perfect financial preparation.