Challenge Pricing a box of parts

In reply to Robbie :

It also illustrates that you need to be conscious of every penny. Look at the relative retail cost of the aluminum swaged tubes vs the steel ones. My stash has steel tubes, aluminum tubes and aluminum hexagonal bars. The bars were my first choice because they just look cool, nice blue anodized aluminum. I'll bet they're the most expensive ,too. The steel tubes will likely be the smart budget choice.

Patrick said:

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"

 

You can tell people when the flea market are going to be until your blue in the face. You can invite people to the events.  But nobody wants to get up at 3-4-5 am to get the best deals or be there til the end and do the dumpster diving.... and....you're a bum if you buy the parts at the flea market at a killer price and share the details. Nobody wants to share when they get those parts at the price we paid. But they're super happy to get the parts.  
 

BTW, next big flea market is 4/4/20 at Maple Grove. We will be in motion around 4:45am and by on site around 6:30am if anyone want to come along. 

If I lived by you, i'd get up to go.  Around here I'm more of the buzzard circling at the end of the day snatching everything they don't want to take home.  I had one guy with a line of 20 intakes who told me $10 each don't want to take them home.  I tend to get the best deals at the end of the day.  I tried going early to Randolph and people had their stuff priced like they knew someone would take it home 

Sorry, missed this thread for a few days. Here is the relevant passage from the rules:

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.

In reply to Tom Suddard :

So, is using the current retail pricing of the components from Jegs/Summit/Speedway as the comparison FMV okay then?

Yes

Couple of things I have noticed with this pricing value model. My understanding is you are allowed to FMV sell items to yourself. Using this method you could not recoup the value of the parts you are using, if you had to buy them from yourself at the same FMV you used in the initial calculation. 

I am assuming that if you sold parts to a third party then you could use that money to lower the cost of the group of parts by the amount sold up to the full price of the parts group. This means they would effectively be treated differently than a parts car.

Parts car example. I bought an 87 corvette for $350 and plan to use the front suspension, steering and brakes systems. I would like to FMV sell the rear suspension to myself  for $350 (because I would like to use it in another unrelated project) and there is plenty of supporting evidence for that value. There have been two sold on eBay in the past 60 days for $550 and one complete front and rear for $995. This make the balance of the parts I want to use with no budget value and $350 against my recoup allowance.

With the parts lot this is not possible as I understand the rules, because I don't see how you could declare one FMV for the parts you put on the challenge car and a different FMV for the parts you are "selling" to yourself. 

I want to be clear, I am not asking for a rules change, I just want to be sure I understand the rules as written and as they are intended to be implemented.

The key phrase in there is "may be pro-rated" You can use that formula, or you can put the full value of the lot into your budget and then recoup from that just like a parts car.