Budget Question

TPTB may or may not chime in. The consensus on the thread seems to be $350 so I think you can be comfortable going ahead with that figure.

You should post the picture. That thing looks like hell. Did your buddy walk away from it?

I don't think it is an inside deal. Your insurance company knows exactly how worthless a 6.0L diesel is in perfect condition. It's the one truck that people practically give away. I think they are probably thrilled to have a buyer for it.

I'm sorry for your misfortune, but look forward to the lemonade you make from it!

The staff reference to FMV confuses me when you clearly have a receipt for purchase.

$350. Build away!

$350 sounds good, feel free to use that as FMV. But for future reference, this is not an open deal available to the public.

Tom Suddard wrote: $350 sounds good, feel free to use that as FMV. But for future reference, this is not an open deal available to the public.

Nice try, but no one is going to believe you with your facts and logic!

Your receipt says $350. IMO $350

But we did not fare well when we asked before...

https://grassrootsmotorsports.com/forum/grm/question-about-challenge-budget-on-totaled-car/70462/page1/

Nor did others....

https://grassrootsmotorsports.com/forum/grm/insurance-buy-back-challenge-car/108470/page1/

I think the fundamental question is "What can any reader build?" as opposed to "What can a reader build?" Any reader requires access to any deal. A reader can be in a situation(s) similar to those [including us] in the above threads and the situation you are in.

I personally prefer to hear about 'a guy' who makes lemonade out of their car / their situation. This is good and bad. Good - you did something about it. Bad - folks may try include other "inside only" deals and that is a problem. I do acknowledge that I may sound inconsistent, as I am in favor of the exception for a totaled car and not inside deals. That's because we've been there and many other have been too. And I am confident that folks don't intentionally wreck their cars in order to turn them into Challenge eligible platforms. Ultimately, the masses and the mag may want it to be 'any guy' can make and that would require including the additional costs.

The rules intend for the purchase to be a situation that can be duplicated by someone who is willing to perfect your buying skill set. Wrecking a car and buying it back is not a reasonably duplicable skill set. That deal is only available to you and cheaper because of it. Buying the same wrecked car at an insurance auction is reasonably easy to duplicate. The auction route is available to anyone who is willing to sign up-but it will require paying fees which raises the price. In my opinion you can call FMV $350 if that's what the board deems it worth, but buying it back from your insurance company for $350 doesn't mean a reasonable challenge budget value is $350.

If the majority says $350 then it's $350.

I personally feel it should be more in line with what a similar condition truck would go for at an insurance auction, or what the truck is worth at current scrap value since your insurance has deemed it as being salvage condition.

MrJoshua wrote: The rules intend for the purchase to be a situation that can be duplicated by someone who is willing to perfect your buying skill set. Wrecking a car and buying it back is not a reasonably duplicable skill set. That deal is only available to you and cheaper because of it. Buying the same wrecked car at an insurance auction is reasonably easy to duplicate. The auction route is available to anyone who is willing to sign up-but it will require paying fees which raises the price. In my opinion you can call FMV $350 if that's what the board deems it worth, but buying it back from your insurance company for $350 doesn't mean a reasonable challenge budget value is $350.

This, exactly. Thank you, Mr.

I bought Q45 #2 at insurance auction after hail damage. The seller was State Farm. My auction ended at $500. State Farm balked and would not let the car go that low and we agreed to $900. With fees, my Challenge purchase price was $1,300.

If you remember the story, I had been in contact with the original private owner/seller both before the hail damage and after. After the hail damage I had the owner inquire to State Farm what they would charge for him to keep the car and I would then buy it off him. The dollar amount that State Farm gave the owner was greater than $2,000. Because of that price, I passed on buying the Q45 that way and instead the owner informed me when the car was picked up by insurance tow truck as well as informed me what auction house it was going to. From there I waited about two months for it to come up for auction.

It is this experience that leads me to my statement above that if the insurance company thought they could reasonably get more that $350 for the truck, they would.