Who was it above...Dave S...who suggested a longer term amortized loan with a payment you can easily afford considering other expenses that you have (including fixed and variable flying costs.) And then have the discipline to prepay each month when you can. You will still be in the losing money column vs. saving then paying cash, but far less so.
Here's a handy calculator for debt prepayment. I'd use something around 7.5% as a starting point. It only will calculate loans up to a 120 month term, but you get the idea.
Saving first is a great idea in a perfect world, and should always be one's first choice (outside of business.) But if you can only afford an airplane financed over 8 or so years, then how many years must you save to pay cash?
In your twenties? Right out of school? What to do, what to do?
Private ownership of an airplane will never make sense when you try to analyze the situation. Once you go over that cliff of idiocy you should simply try to exercise some wisdom and judgment about your decisions as best you can.
You should also be aware of other disadvantages of financing: mandatory hull insurance coverage, mandatory airworthiness. I'm not sure that having full hull insurance on a 60-year-old airplane worth only $20k makes a whole lotta sense but you will be stuck with it regardless. Wholly owning your airplane gives you some flexibility in this area. A partnership sure helps, especially when the big bill comes due. Makes financing more complicated.
Investment in a Cessna 140 in the current market is a wise one IMO. The class graduating ahead of you were buying Avalanches on 100% financing and putting the dealer fees on their Mastercards.
Anyway that's my rambling thoughts. I financed my airplane when I needed to, and exercised what I hope were wise money choices when I could afford to not to have to finance it any longer.
