eastsideTim
eastsideTim UltimaDork
10/15/24 2:50 p.m.

My budgeting mind is in the past, where if you bought a lot of various different parts, you took the budget hit for all of them, then got some recoup by selling off the ones you didn't use.  The impression I get with the new budgeting rules is there is some more "flexibility".

 

 

A part’s cost may be pro-rated by weight or quantity if from a homogeneous parts lot (example: zip ties, nuts and bolts, a box of 20 identical axle shafts, etc.), or relative retail value if it was purchased as part of a heterogeneous parts lot (all-you-can-carry sales, storage unit buyouts, garage cleanouts, etc.) Relative retail value is calculated as follows:

 

  1. Assign and prove a fair market value to every part in the lot.

  2. Add those fair market values together to calculate the total fair market value of the lot.

  3. Express the fair market value of the part you are pro-rating as a percentage of the lot’s total fair market value.

  4. Multiply the actual price paid for the lot by that percentage in order to determine the part’s relative retail value.

My examples are buying from an individual off FBM, the GRM forums, CL, etc.

Firstly, let's say for example, someone is selling a bunch of different parts: Part A($50), Part B($100), Part C ($250).  If I ask them if they'd take a lower price if I bought all three, say $350, but only used Part A and Part C on my challenge car.  I kept Part B around for one of my other projects.  If I am interpreting the rules correctly, does that mean, Part A gets budgeted at $43.75 ($50 * ($350/$400)) and Part C gets budgeted at $218.75 ($250 * ($350/$400))?  Would this mean my overall and recoup budget is not affected by the existence of Part B?

Second question, does the quoted rule above work when buying a parts bundle from an individual, that they already had advertised as all the parts together?  Say I buy 10 heterogeneous items in a lot for $1000, I could assign FMV to each of them(that all together exceeds $1000), come to the forum for approval, then price each item based on FMV * ($1000 / Sum(all 10 FMVs))?

I want to be 100% sure I have this right as it could affect the direction of my build significantly.  Seems like it could really make it more important to buy parts in lots versus individually, if the total cost of the lot doesn't hit the budget and require some recouping.

 

AngryCorvair (Forum Supporter)
AngryCorvair (Forum Supporter) GRM+ Memberand MegaDork
10/15/24 2:58 p.m.

In reply to eastsideTim :

first scenario:  yes, you are 100% correct.

second scenario:  you do not specifically need forum approval, the rules state other ways to prove FMV.  the rest of your answer is 100% correct.

eastsideTim
eastsideTim UltimaDork
10/15/24 3:15 p.m.

In reply to AngryCorvair (Forum Supporter) :

Thank you.  Addendum question - what if the parts lot cost over $2000?  Still valid?  This one might be a Tom question.

SV reX
SV reX MegaDork
10/15/24 4:26 p.m.

The base car cannot exceed $2000. Parts lots,engines,  parts cars, etc can exceed $2000 (and then be adjusted as you've described)

AngryCorvair (Forum Supporter)
AngryCorvair (Forum Supporter) GRM+ Memberand MegaDork
10/15/24 6:24 p.m.

In reply to eastsideTim :

SVreX is correct, the rules as written only restrict purchase price of Challenge car (not parts cars or parts lots) and the total as-raced.

eastsideTim
eastsideTim UltimaDork
10/15/24 7:13 p.m.

Well this changes everything.

jfryjfry
jfryjfry UltraDork
10/17/24 3:12 p.m.

I think in your second question of a lot of 10 identical items for $1000, the value of one is $100. 
 

even if the fmv is $200 each it still comes out the same. I'd say fmv is irrelevant anyway because that's what you paid for it.  The percentage calculation helps breakdown lots of various valued items. 

AngryCorvair (Forum Supporter)
AngryCorvair (Forum Supporter) GRM+ Memberand MegaDork
10/17/24 3:42 p.m.
jfryjfry said:

I think in your second question of a lot of 10 identical items for $1000, the value of one is $100. 
 

even if the fmv is $200 each it still comes out the same. I'd say fmv is irrelevant anyway because that's what you paid for it.  The percentage calculation helps breakdown lots of various valued items. 

i don't think he ever asked about 10 identical items...

OP said:  Second question, does the quoted rule above work when buying a parts bundle from an individual, that they already had advertised as all the parts together?  Say I buy 10 heterogeneous items in a lot for $1000, I could assign FMV to each of them(that all together exceeds $1000), come to the forum for approval, then price each item based on FMV * ($1000 / Sum(all 10 FMVs))?

jfryjfry
jfryjfry UltraDork
10/19/24 10:28 a.m.

In reply to AngryCorvair (Forum Supporter) :

Ah so he didn't....I need to slow my roll apparently!

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