Ok so I bought this box of parts for $300, there are 46 items in the lot. They are not all the same, swedged rods, heim joints, steering wheel and adapter. I plan on using some of them on my challenge car but not all.
I think I see a couple of options, but want to make sure you all agree.
1. Sell off $300 worth of parts I am not using, claim $300 in recoup, and parts I am using are no budget hit.
2. $300 box /46 items = each item worth $6.52. Count the number of items used on challenge car, example two heims and a swedged rod =$19.56 added to budget.
I think according to the new rules you're supposed to either use the recoup, or to price the lot relatively based on fmv. For example, if the fmv of the steering wheel is $300, the fmv of each heim is $20, and each rod is $10, you would have an fmv total of 17 heims for $20 ($340), 26 rods for $10 ($260), and $300 steering wheel. Total $900. Since you paid $300, you could use each part at 1/3 of it's fmv.
If it was a homogenous lot (like zip ties) then they are all relatively priced already so the math is easier.
In reply to Robbie :
Thanks, guess I will work on some FMV numbers and see how things work out. Right now looks like I have plenty of recoup avavlible so that may be the best route.
Also please measure those rod ends I may need some!
OK another question, I am researching FMV for some of these parts and looking at ebay sold listings. There are not many but a few, do I include the shipping cost of the example items since my price included shipping?
In reply to Robbie :
They are all 3/4" , that is the threaded portion and the through hole. I have tubes from 8 to 21" I will be using at least 4 bars for our bellcrank suspension, and possible a couple more for soome other things but I think there will be some left over if needed.
Go read the rules, this situation is specifically addressed. Let me know if you have any questions after reading.
In reply to Tom Suddard :
Consider me suitably chastised for not reading the rules. I did not remember that situation being addressed. I did have a question from above, when considering FMV from eBay sold listings do you include shipping? My box of parts was a total including shipping. So for example I found a sold listing on eBay for 5 swedge tubes, that sold for $40 plus $20 standard shipping. So would you consider FMV at $8ea, 40/5 or $12ea 60/5? I ask because shipping is included in parts purchases, so I was wondering how it affects FMV calculations.
I just want to be consistent, not trying to find any loop holes.
Example sold listing
I would think that since shipping on parts is included in the budget that you would include it in all your calculations.
In reply to Stampie :
That is what I was thinking, but I wanted to see what the consensus was.
Why not price out the whole lot at retail prices and then prorate back to the $300? It would be less work to find new prices than find a bunch of used prices. Just go to some site, like Speedway Motors and use their catalog prices. I have to price out a tote full of heims and rods myself, so the answer is of some interest to me, too.
In reply to DeadSkunk (Warren) :
Here are the FMV rules that I failed to read before posting this:
Fair market value must be proved in your build book with supporting documentation. Ways to prove fair market value include:
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Copies of corporate listings of similar items for sale.
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Copies of at least three comparable listings from a peer-to-peer selling website (eBay, Facebook Marketplace, Craigslist, etc.)
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A copy of a GRM message board thread where at least 5 users with more than 50 posts have agreed with a proposed fair market value for your item.
So would your solution be the "corporate listings of similar items for sale" My concern is are you comparing FMV of new parts to used parts, but finding ebay and other listings of exact parts like this are not easy.
The other issue I can see coming up is that it is legal to FMV sell items to yourself, so if you use the retail price are you then selling items to yourself at too high of a rate.
In my example I will probably sell or FMV sell to myself some of the parts and take the recoup since it is available in this build. "Selling them to myself" at speedway prices for recoup sounds like a bad idea and one that I see can be taken advantage of. Is there an accepted standard of percentage of retail price for a used item, say somewhere between 50% and 75%.
I don't want to create a budget controversy if it can be avoided, but we are taking on an ambitious build so every penny counts.
In reply to Fladiver64 :
All I'm asking/advocating is that the entire lot be priced at retail (maybe that's the corporate listings). If the lot is worth $1500 new, then prorate the individual parts back to the $300. Then a new Heim that's $15 get's prorated to $3 each from the used lot. Finding ads for these parts used isn't proving to be easy. I've been looking for my own pile of tubes and rods. Nothing different from what Robbie said except using retail pricing vs. finding used prices. All you're looking for is a way to value individual components from the lot. Selling of $300 worth of unneeded parts would certainly make the whole exercise easier.
In reply to Fladiver64 :
I think he means using maths to assign the relative percentage of the $300 via new part pricing. If a tube is $15 and a rod end is $10 and a steering wheel is $50 new, then they each eat up a different proportional percentage of the $300. Say it all adds up to $1000 new and the steering wheel is $50. The wheel is 5% of the value, so it would be $15 of the $300.
In reply to DeadSkunk (Warren) :
Ok I like that concept, certainly easier than finding used parts. I'll work on my list and post it. Then people can comment on the results.
The rules don't say anything about bribing those 5 users with 50 post. I could use some heim joints ...
While I currently have no need for swaged tubes or heims, I've seen some unthinkably low FMVs approved by the jury of peers method.
Angry, That's because I'm like "i'll value it at 50% of new so $50 is fair" then andrew nelson pops up and is like "i bought 27 racing seats, 5 pair of ls1 heads, half a model T, and 65 sets of headers for $3.50 and a can of coke last sunday at 4am"
In reply to Patrick :
I've started thinking like Andrew on some stuff. I bought a bunch of suspension links from a guy who was getting out of racing to get the average price down. In my case it amounted to 78 pieces for $100.
In reply to DeadSkunk (Warren) :
that's why I'm buried in surplus parts. I had to stop.
OK so here are my calculations based on the above suggestions. I did add the same shipping cost to the retail parts as was included in my package, even though you could have gotten free shipping if you ordered all of them from Speedway at one time. The opposite is true if you order one tube at a time shipping would be about $10 each and I thought that threw the values off by too much.
So maybe not the best deal overall but I think I could still get close to zero out my costs by selling parts I'm not using.
Looks fair to me. I think if you have recoup room your best bet would be to keep what you need and off the rest
In reply to Patrick :
I think that is my plan, but you know how budgets go as builds go on.
Funny how close this came out to just averaging the parts cost. From your example two heims and a rod = 17.56.
But from your spreadsheet depending on the rod that would be anywhere from 15.37 to 21.90.
P.s. don't use that steering wheel!
