FMV on a car that was yours, given away then given back

So I have a 1991 mustang, four cylinder. I bought the car two years ago to rally cross.  Over paid between 15 and $1700 bucks.  The car is really rusty and rough.  I can give more details if asked.  We talked about putting coil overs on it just because we had done springs on a fox body before and it was a nightmare.  My son had his adventures with the car, it never rally crossed.  It is now back in my possession.  I was doing some major hackery cutting out rust and patching with license plates. I thought I could run this car in a Lemons Rally.  I then wondered if the fair market value would work in my favor, if I ever wanted to do the challenge.  I cannot ever see this car being competitive, it would be more to go to the event.  My son is done with the car, he is into his wrx and I don't think will come back to the blue oval.  At this point, I don't see if this car will ever be more than a Lemons Rally car.  It is really rough.  It is only on the road here because it's registered as an antique.  If it helps, I will bribe anyone with chocolate lobsters.

Wondering

Pictures? and it's best to tell us what you think and see if we agree.

Did the title actually transfer to your son?

No, we never had a title to the car, due to its age. It was his car on insurance.  I will post pictures.  It's really ok if this doesn't fly.  It was just when my son dropped it for the subaru that I thought about it. Again this is more for me to attend the challenge.  Pictures to follow.

Grand. Tops.

Why wouldn't it just be valued at the price you paid for it two years ago?

I am not trying to be a jerk, but we lost the paper work. It was either $1500 or 1700.

Either way, the coil overs were $500 bucks, so it’s at or over challenge money.

this was a long shot for me to throw out with the change in ownership 

I thought if it would work, that would be great.  I know other people have worked crazily to stay in budget, I don’t want to cheat.

sorry I’m on my phone in the middle of a family crisis 

or I’d give more details 

In reply to thedoc :

First...deal with the family stuff. I hope everything is OK.

Secondly:  It's only at $2K with those coil over shocks. You could remove them and find other Mustang bits for less than $500 I'll bet. Spend an afternoon in your local junkyard and see what Mustangs are laying around as a source of parts. Look on Craigslsit and FB Marketplace for Mustang stuff. It's a pretty common car. Then you're allowed 4 tires that are budget exempt. You could potentially sell off the current wheels and tires to buy some wider rims for the free tires. IMHO half the challenge in participating at the Challenge is finding parts and improving the car with the budget constraint hanging over your head. 

Example :Marketplace - Foxbody parts | Facebook   Guy has 4 lowering springs, rear shocks and rear tubular control arms for an asking price of $200. All that's missing is a pair of front shocks. Worst case is you retain your current fronts at some portion of the $500 and utilize $200 of other parts. Best case is find some front shocks for $50-100. You would still only be at $1750-1800.

My point is....there are ways to do this and come enjoy the event.

In reply to DeadSkunk (Warren) :

Thanks for your comments Warren.  My brother in law is in ICU on a ventilator due to covid, his wife, my sister is showing signs of dementia.  Awful.  We are doing the best we can with the situation.  Thanks.

On to the car.  I guess I wanted to use this car because I have it, and don't have space right now for another car.  My son loves the new coil overs because he was thinking of "roadkill" putting new parts on junk cars.  They are sentimental for me.  I was hoping this would pass muster, but realized it might not.   Aside from the coil overs, I don't think there is much else I could sell on this car to recoup money.  For the concours judging I thought it would be a hoot if the interior was as pristine as I could make it.  It is apart, but I think a most of the parts are there in the back seat.

As I said before, when the car came back to me my thoughts were to run it in the lemons rally.  Then I thought to float the FMV clause, but realized that it was an in family gift.  The only way this car would be remotely competitive would be if someone gave me another car, or I found a wrecked car for free.

This is all so good, If this doesn't fly, it doesn't.  No worries.  As I said above, too many people have worked so hard to stay in budget.  I'll just have to see how things play out.  Maybe another car will come my way.  You never know.  

Thanks, Gents

Praying for your family.  That has got to be tough...

Wishing the best for you and your family!

I do understand the "sentimental" comment on the coil over setup, especially with him liking the setup and you wishing to tackle this project with your son!

But that being said, and just brainstorming with you here.  If you were able to trade the current suspension with someone looking for that setup, for cash and there good stock suspension?  that would give you good stock components and some cash back in the budget to boot.  Just thinking out loud with you on budget options.

In my zip code edmunds gives a private party sale value for a 91 mustang lx in excellent condition as less than $300. That car is not in excellent condition.

Guys, thanks for the prayers for my family.  I am more than gut sick about my brother in law.  He is a great guy, married to my oldest sister.  He is older than she is, I had my kids late and they have been the closest to grandparents my kids have had.  For my sister to be showing early dementia is beyond horrible.  I know it doesn't matter who gets it, but she was always beyond brilliant and multi talented.  My family members noticed her vocabulary wasn't as sharp and had wondered.   We now realize my brother in law had been covering up for her.  Now that he is totally incapacitated, the truth comes out.  I know this should probably be in off topic, but  I wanted to say thanks.  For you all to smile, my baby sister wants me to continue with "cars" as she thinks auto cross keeps my mind sharp!

Also hoping for the best for your family.  

I've gotten a few questions via email about whether FMV is appropriate here. As the only relevant transaction is an inside deal (your son gave you a free car), it's appropriate to FMV the car. Whatever happened to the car before isn't relevant–just like buying an Infiniti Q45 brand new at the dealer doesn't affect whether or not it's worthless when a Challenger gets their hands on it.

I'd suggest the FMV is $1500, as it sold for that very recently.

So, looking at the rules, if I have two more people throw out a FMV on this car, I can make it a challenge car.  Any takers?  I am not sure what direction to take with this car.  My fab skills are less than average, but I do want to learn to weld.  I don't know what I would end up doing with this car, but I would want to be more humorous than not.  I will go through the cars that have competed, but how many are meant to just compete, get a laugh and finish?

I am freaking out as there is an '85 dodge daytona for $250 that looks interesting.  I am just not in the place to pick it up right now.

So, anyone want to throw out a number for FMV for this awesome four cylinders of mustang fury?  If you need a bribe of a chocolate lobster (in the event I actually make the event), just let me know.

I just did a search tempest search nationwide and only found ~5-10 rough condition mustangs of this generation.  Not sure if that's due to Facebook dominating c-list or just not many but here is what i found.

$500 LX 4-cyl (Most comparable)

$995 4-cyl Convertible Runner in decent shape

$795 rust free V8 Man Convertible in roughish shape

Find 2-3 more like that $500 LX and you got a claim at $500.

I think $500+500 for the coilovers (Assuming they are nice coilovers, if these things are Maxpeedingrods coilovers they really just mean you have adjustable height suspension).  Is fair.  

In reply to thedoc :

The best thing to do is say what you want it valued at and see if we agree.

I would say the car is worth a grand.  I can give more particulars on what is wrong with the car if that helps.

Aftermarket sunroof, crooked, and leaks.  (I actually think the off-center gives it a certain vibe)

Heat is intermittent

The passenger door doesn't work

Muffler and cat are rotted through.

Torque boxes are scary.

Steering rack has the nice Ford noise.

The Interior is awful, but I think major elbow grease and prayer for parts would make it nice.

Hopefully, the rust underneath isn't catastrophic

Both rear quarter panels are majorly rusted.

That's what I can come up with.   

Thanks guys, Let me know, I do appreciate you walking through this for me

As to the concern of the coilovers putting it over budget, recoup is in play as they were added after initial purchase. Foxbody quarter glass used to be stupidly priced. Sunroof bits can be sold off an street sign 3M bodybonded and riveted in. Nobody really needs rear seats from a foxbody, yet they may net $40 to someone wanting to make a mancave bench. Enough people are now restoring them that good condition OE wheels can possibly fetch enough to get wider aftermarket wheels secondhand. 

This can definitely work, especially if the lobsters are dark chocolate.