http://www.grmchallenge.com/rules/
In my mind, if you are buying a car for $1, there is a strong chance that part of the reason it is so cheap is because it needs a lot of maintenance. Maintenance replacement parts are not budget neutral.
Here's the budget piece from the rules, I bolded the pertinent lines for your questions:
Net cost of the Challenge car and its preparation for presentation at the event must be equal to or less than a dollar amount equaling the year of the competition. Your purchase price of the Challenge car cannot top that year’s budget cap.
Up to half the total annual budget may be recouped by selling parts originally included with or attached to the Challenge car, related parts car(s), or related parts packages at the time of purchase. You may not factor gains or losses made from buying, selling or trading unrelated parts into your budget.
You may never recoup more than a part or car’s purchase price or fair market value (whichever value you listed on your budget sheet.) You may not list fair market value instead of purchase price on your budget unless you do not have a receipt from the purchase, or depreciation/appreciation has drastically affected the car or part’s value. Free parts must be known to and available to the public (eg. sitting in a ditch on the side of the road). “Free” parts given to you by a friend must be added to the budget at fair market value.
In English, what does this mean?
For 2018, the budget cap is $2018.
For 2018, the most you can recoup through parts sales is $1008.50.
For 2018, the max you can initially pay for a Challenge car is $2018.
If you buy a part for $40, decide it won’t work, then resell that part for $50, you may not recoup $10. Leave this unrelated transaction out of your budget sheet entirely.
If you buy an engine for $100, use the heads on your Challenge car, then resell the rest of the engine for $80, you may recoup $80, assuming your build has not already hit the recoup limit.
If you buy an engine for $100, use the heads on your Challenge car, then resell the rest of the engine for $300, you may recoup $100, assuming your build has not already hit the year’s recoup limit.
If you bought an engine last week for $800, but the fair market value is actually $200, you must still add it to your budget at $800.
If, 30 years ago, you bought an engine for $800, you may add it to your budget at today’s fair market value if you desire to.
Fluids (including gasoline, oil and brake fluid) are not required to be included in the budget. Nitrous oxide refills do not count toward the budget (however, the cost of the equipment that comes along with a nitrous setup does need to be added to the budget). Nominal amounts of grease (such as what’s required to pack bearings) do not need to be included in the budget.
Costs to pick up your hooptie from the seller are exempt.
Title fees and so on, in case you bothered, are exempt.
Shipping counts toward parts prices. Sales tax does not.
These safety items are budget-exempt: seat belt or harness; fire extinguisher; roll bar padding; wheel lugs, studs and bolts, and four tires. Brake friction materials, lines, calipers, master cylinders, rotors and drums may be replaced with fresh ones that are functional duplicates. The purpose of this rule is to allow for fresh brake components, not to allow for budget shenanigans. For example, original brake parts cannot be sold and then re-bought to take advantage of this allowance.
The Reese Rule: SFI-approved harmonic balancers, SFI-approved flywheels and SFI-approved flex plates are budget-neutral. These parts are dangerous rotating assemblies that should be treated with respect. Any intact harmonic balancer, flywheel, or flex plate listed on the budget may be exchanged for a duplicate SFI-approved part without increasing or decreasing the budget. “Duplicate” is defined as having the same listed application as the standard part in a major parts catalog. In situations where a standard part is not present to exchange, fair market value of the standard part may be used.
SFI-approved transmission shields, SFI-approved flex plate shields, and SFI-approved bell housings are not rotating parts, and are not budget exempt. You may still be required to use one or all, depending on your car’s construction and E.T. in the drags.
Any inside deals—parts, whole cars, trades, donations, stolen parts, etc.—must be added to the budget at fair market value. If you can’t figure out the value of a part, ask on the message board at grassrootsmotorsports.com.
Labor you perform yourself does not count. Any labor you pay for counts. If you run a shop and your paid employees work on the car, then it counts.
The Stampie Rule: We’re sorry that your car is having an issue at the event, but we can no longer turn a blind eye so you can get back in the game. Parts borrowed at the event must be added to the budget at purchase price or fair market value. If two builds elect to share parts at the challenge, such as a set of wheels and tires, then the parts must be included in both builds’ budgets at the full purchase price or fair market value.
